Level 2 - Project Evaluation

Question 1

What is the difference between Value Engineering and Value Management?

Answer 1

Value Engineering looks at how you generate better value out of a specific process such as a building. For example can you redesign the foundations so that less concrete and reinforcement is used but the new solution still supports the building in the same way? Alternatively, can we use a different roof tile, which still provides the same quality, look and style but is cheaper? Also remember that this is a process the project team adopt and own – it is not something the QS does in isolation.

Value Management looks at issues at a higher level – it considers the process and procedures involved in an industry and considers how to do it better and more cost effectively to generate better value. For example is an entire function out sourced or dealt with internally? Can a particular function in a client organisation be re-engineered to provide better value (e.g. the baggage handling procedure in an airport, or the way mail is sorted at a sorting office)?

Question 2

How did you actually set about value engineering this project that was over budget? What issues did you take account of?

Answer 2

• Structured approach managed by one person
• Involvement of the whole project team including the client
• Involvement from relevant stakeholders
• Managed workshops
• Defined agenda highlighting the issues to focus on
• Encourage question and challenge
• Clear defined ownership of actions along with dates for completion (not everything will be resolved at the workshop)
• Risks indentified in parallel to the value engineering solutions
• Clear presentation of solutions and risks
• Buy in from client to proposed solutions

Question 3

What are the benefits of value engineering?

Answer 3

Benefits for both the client and the project team. These include:

• Clarification of the brief separating needs from wants
• Improved performance through efficiency savings
• Identification of alternative designs, solutions or locations
• Identification of alternative construction methods
• Empowered staff through multi-disciplinary teamwork
• Enhanced service / product quality
• Identification of risk
• Identification of additional functions that improve the outcomes of the project
• Improved staff morale, commitment and relationships
• Rationalisation of the project programme.

Question 4

What are the risks associated with value engineering?

Answer 4

Number of risk for both the client and the project team that need to be considered and minimised. These include:

• The exercise is undertaken too late for changes to be effective
• Inadequate information causing incorrect assumptions
• Insufficient participation by stakeholders
• Insufficient time allocated for the process
• Inadequate support by senior management
• Unskilled facilitator using improper application of the methodology.