Value Management and Value Engineering
Achieving value for money on projects is more critical than ever. It is vital that public bodies are able to demonstrate that they are delivering projects with maximised value and benefit to cost ratio. Simple cost cutting cuts value and arguably as a result keeps the value for money of the project the same or worse.
We can reconcile the differing views of stakeholders, and internal and external customers to enable achievement of the greatest value with maximised benefits. Focusing on the needs of just one stakeholder group unbalances the project creating scope for opposition and obstruction. Too often consultation is inadvertently biased and carried out at too late a stage to effectively influence key decisions.
By establishing measures of value, focusing on real objectives and targets before seeking solutions and innovation we can assist with achieving the optimum project outcome. Minimising project risk and implementing appropriate control strategies is also a vital part of Value Management. In effect value cannot be effectively managed if the risks that the project faces are not managed. Un-managed risk ultimately and always increases cost and reduces value. If a project becomes undeliverable because it becomes unaffordable then it cannot create value.
Value Engineering vs Value Management
Value Engineering is often undertaken when what is needed is Value Management. Value Engineering may deal with issues more properly falling under Value Management, but is usually undertaken at too late a stage to influence the big decisions. Attempting to retrofit big changes in concept and approach at a late stage simply introduces delay and additional cost.
Value Engineering is concerned with detail and was developed to address finding parts and components that fulfilled the same function but at least cost. It is undertaken later in a project to look at detail and find lower cost or better performing options. Value Management is undertaken early in a project and is concerned with what gets built rather than how it gets built. Attempting to deal with both at the same time can create conflicting priorities and it is always better to undertake Value Management first and Value Engineering later.
We have extensive experience in managing value and risk on civil engineering projects and delivering real outcomes. This includes large infrastructure projects as well as small projects.
Our principal Andrew Munro is a member of the Institute of Value Management.
- Value engineering and risk workshops
- Value management and value mapping
- Risk assessments
- Best value review