Who should be involved?

The team

Value management is a team-based approach used to define the client’s objectives and ensure that best value and whole life solutions are selected to satisfy those objectives.

The project team have considerable influence over cost, programme and specification. By contrast, the benefits derived from a project, which include issues related to quality and design, can only be assessed by the client and end-users. Therefore, to improve value for money, the project team must define clearly the needs of the client, to eliminate expenditure on unnecessary costs, to obtain the optimum balance between time, cost and quality.

In the US, where value management originated, it is not uncommon to use a shadow team to conduct an in-depth value engineering study, inclusive of 5-day workshop.

Elsewhere in the world, it is almost always the project team that undertake the value management study which gives them ownership of results and commitment to implementation rather than a resentment that outsiders have found fault by identifying improvements.

One of the failings of this approach is that the value management workshop is sometimes considered just another team meeting, or worse still that a dedicated value management meeting is not required as value management is being addressed as part of their day-to-day work. This is, in part, a safe assumption, as the project team is duty bound to deliver the client’s requirements in a cost effect manner, but value management is an opportunity to take a step back and view the project from a different perspective and generate further value improvements.

Value management workshops must never be just another meeting. It should be a special event, ideally led by an impartial value management practitioner. Time should be allocated for function analysis, which provides a different perspective and in-turn provides the project team inputs for creativity and innovation generating value improvements.

Selecting the participants is an important part of preparation for the value management workshop. A large team can slow progress, but absence of the key decision makers or the right expertise can frustrate progress. Limiting the participants to a maximum of circa 12 people, is best. If the proposals appear sound, meeting programme and budgetary constraints and the workshop aim is to validate or fine tune, then a larger team whose understanding of the proposals is key to successful project delivery and may be appropriate to secure their agreement.

The following people should be represented at the workshops:

  • client;
  • design team (project manager/architect/cost consultant/structural engineer/services engineer);
  • specialists (acoustic/AV/IT/façade/fire/interior design/landscape architect/vertical transportation); and
  • project team (main or management contractor and key suppliers).

Independently from workshops, design consultants can apply value-based design which focuses on the elimination of unnecessary cost. The cost consultant can contribute to this process by reviewing the design from a value-for-money perspective.

The characters

Ideally you would want a mix of characters to form the most creative and productive team, although despite best endeavours you rarely have that opportunity. Therefore, you should use the team members appointed, which may result in team members of opposing views. Such people with project responsibility cannot be ignored as their participation in value management is essential to successful project delivery.

The role of the value management practitioner

Ideally independent of the project and seen as impartial by the project team, it is generally acknowledged that the facilitator will not be a member of the client, design and/or construction team, although the facilitator may be a member of one of the contributing organisations.

It is also important that project team members do not divert their attention and efforts attempting to facilitate the study. They have a far more important role to play representing their function in the project.

The roles of the value management facilitator:

  • holds a position of leadership and authority;
  • manages how value management the value management strategy is applied to ensure that the holistic approach is appropriate and maximises the benefit of resources;
  • coordination and facilitation of workshops:
    • sets-out objectives;
    • sets-out the agenda;
    • ensures all stakeholders are appropriately represented;
    • ensures all documentation is issued to participants in advance of meetings;
    • motivates participants to achieve objectives;
  • provides conditions and opportunities to challenge project assumptions;
  • seeks innovative solutions to project needs;
  • has the ability to analyse and solve complex problems;
  • manages the discussion so that objectives are achieved;
  • issues a post-discussion report that clearly documents the proceedings and outcomes.

Qualified value management facilitators can be found on the Institute of Value Management website.

Value management is a vehicle for team building, acknowledging that value management always poses a threat to someone, feeling threatened that others are criticising their work which can be generate some resistance to value management.

This resistance may be overcome by a focus on function creating a far more objective platform for discussion. The project team may comprise specialists but no expert on function, which is a great leveller and helps to bring the project team to a common understanding.