Week: 25 - Value Management & Value Engineering

Question 1

Value

Answer 1

The ratio between profit (Outputs) and the cost or the effort (Inputs) required to achieve it.

Question 2

VM

Answer 2

Value Management developed in the 1980’s and 90’s as a broader process to explore how value could be provided for a project at a strategic level by helping develop theright project brief.

Question 3

RICS (2017:p4)

Answer 3

Used effectively, it can reduce design and construction time by giving the team a clearer focus on the client’s prioity requirements.

Question 4

Pioneer of VE

Answer 4

VE was originated by Lawerence Miles of the General Electric Company during the second world war.

Question 5

Why did Lawerence Miles start the concept of VE

Answer 5

During the second world war there was a shortage of materials meaing GE had to search for alternative materials. GE found that these materials offered a better performance at a lower cost.

Question 6

Aim of VE

Answer 6

Produce the same outcome as initially specified for a lower cost than estimated.

Question 7

Strategic Value Management (SVM) / Tactical Value Engineering (TVE)

Answer 7

Looks at more cost effective alternative design/material solutions.

Question 8

RICS 2017 Diagram - Black Book Guidance

Answer 8

Indicates that the earlier a change is made in a project, then the lower the costs of making a change and correspondingly, the earlier a change is made, then the more significant are the positive impacts of the change.

Question 9

Five principal stages to a VM or VE study

Answer 9

1) Information gathering-Workshops undertaken by the design team, whereby they will gather information on possible issues with the design that may benefit the project by having alternative design solutions that meet the brief, which may well be more cost effective, considered.

2) Creative thinking- This may be the design team undertaking a brainstorming exercise, in a workshop, identifying different solutions that meet the functionality of the brief. The objectivity behind this exercise is to create open thinking to a design problem, to come up with alternative design solutions to the problem, which are more cost effective.

3) Analysis, evaluation and short listing- The design team analyse and evaluate the different technical solutions generally, whilst the quantity surveyor may well provide alternative initial budget costings for these solutions, whereby the design alternatives are appraised in terms of the functionality of the solutions meeting the brief and their respective costs are indicatively established. Finally once all this has been established, then a short list of the best of the options is prepared.

4) Develop- the short listed solutions are developed in more detail, in terms of design and cost appraisal, prior to giving them final appraisal and selection.

5) Presentation- the limited number of options taken further is whittled down to a clear favourite solution by the design team and the client and this option is selected to be adopted within the design for the project.