Applying Value Management to Projects

Level: Undergraduate | Grade: 2:2 | Approx. Word Count: 2,130

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Overview

Following research and expert opinions, the incorporation of value management (VM) as an integral part of the planning, development and execution of any corporate project has become almost standard practice over recent decades (Kelly et al 2004). This has been found to be particularly the case in the construction sector, where VM is used as a mechanism for equating high quality outcome with optimal cost.

The inclusion of VM as part of construction project management has been driven mainly as a result of government commissions aimed at improving outcome standards in this sector, of which the one chaired by John Egan (1998) probably remains the most influential. Nonetheless, subsequent to this report, a debate has arisen regarding the effectiveness of including VM in project management, with opponents to this approach suggesting this approach can disrupt proven methods of project management (Dallas 2006). It is the question of the effectiveness of VM in construction that forms the basis of the current study. It commences with a review of the meaning and objective of VM before examining the examining the argument related to its benefits and disadvantages. Based on the outcome of this discussion, the study presents the author’s conclusion regarding the effectiveness of VM in construction projects and makes recommendations based on this conclusion.