The definition of value management and its role in construction management

Value Management is concerned with improving and sustaining a desirable balance between the wants and needs of stakeholders and the resources needed to satisfy them. Stakeholder value judgements vary, and VM reconciles differing priorities to deliver the best value for all stakeholders.
Value management is linked with ameliorating and keeping a balance intact between the wants and requirements of stakeholders. The judgment of stakeholders varies and it is the prime responsibility of the management to reconcile with the different priorities and requirements of the stakeholder and deliver them the best value. It is a tool associated with defining, increasing and achieving value for money. Upon the very initial stages of any project, the role of value management is significant. It provides a powerful way to discover the project’s aims and ambitions of the client.

Value management generally go through the following three-stage process

1. Developing a value hierarchy:

The value hierarchy is a technique of accepting primary project aims and splitting them down into their own need-based sub-aims. Then, each of the sub-aim is a means to acquire the entire broader goal or objective.

2. Develop the value tree:

This stage comprised of balancing and weighing the aims and sub-aims of value. This leads to the production of well-ordered priorities. The weightings are reached in a workshop to the group consensus.

3. Develop a decision matrix.

Once the weightings to the various project aims and sub-aims have been priorities and declared set, then it is consequential to distinguish which of the available options will render the highest value when set against the aims, that is, how well they meet the targets that have been set.

The need for value management on construction projects

Value management is needed on a construction project for the following reasons:

1. A need for simplicity in contractual language, arrangements and relationships.

2. A need for the streamlining of the supply chain.

3. A need to shift the cheapest option towards best value options.

From the above, it is clear that the methodology of value management are not only momentous in construction projects to acquire great value from the sources, but to render the benefits i.e. good communication, better teamwork, and adequate alignment of the supply chain.

Benefits of value management in construction

1. It is a tool for optimizing the balance between stakeholders wants and needs and expectations.

2. It creates a base for creating a project short and achievable.

3. It shows the project goes in an efficient way and fulfilling the business needs.

4. It paves the way for design development through better communications and high performance.

5. T also serves as a functional mechanism to determine the value and takes into account.

6. It demonstrated the value for money and account monitoring.

7. It can be very low cost, the high benefitted procedure to gain the maximum yield.

8. It enables work that can be put into the design, allowing different elements to be piled up in different phases of construction.

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