APC Trainer on... Value engineering and management under T022
You could be questioned on this under the Design Economics and Cost Planning (T022) competency
This week’s question focuses on the topic of value management and value engineering. In your final assessment this could be addressed as part of the Design Economics and Cost Planning (T022) competency. This is a core competency for quantity surveyors (Level 3) and an optional competency for building surveyors (Level 2).
The following questions are typical of those that could be reasonably expected at Final Assessment:
Question What is Value Management?
Answer Value Management is the wider term used in the UK to describe the overall structured team-based approach to a construction project. It involves clearly defining the client’s strategic objectives, considering optimum design solutions within the context of the client’s business objectives and deciding which of these provides the optimum lifetime value to the client, as well as a review of the whole process after occupancy. Value Management includes value engineering as part of this process.
Question Is Value Management not just cost cutting? Please give an example to back up your answer...
Answer There is a common misconception that Value Management is simply a euphemism for cost cutting; that surveyors do it all the time in developing cost information. However it is important to distinguish between intuitive value based thinking and the formal process of Value Management. Numerous examples exist of projects that exceeded the budget, overrun on time or simply failed to deliver the expected benefits demonstrate that the formal process should be considered on all significant projects.
For example: One company spent many millions of pounds building a smart new training facility. By careful space planning they would have accommodated the same functions in their existing facilities, thereby saving the bulk of the money for more profitable investments. Value Management could have avoided this. Another, who did apply Value Management, found that by spending a little more on its shop refits it could halve the time taken to re-open for business. The extra business more than paid for the additional fit-out costs.
Question What is Value Engineering?
Answer Value Engineering is a ‘systematic approach’ to delivering the required functions (or components) to the required quality at the least cost’, i.e. a method of ensuring that the client gets the best possible value for money in terms of safety, performance and delivery targets. It is a structured form of consensus decision making that compares and assesses the design solutions against the value systems declared by the client.
Question At what stage should Value Engineering be carried out?
Answer One of the most frequent comments received after a successful Value Engineering study is that the project could have benefited much more if only the study had occurred sooner. Value Management should be planned from inception, not bolted on as a corrective measure later.
Question Describe how Value Engineering techniques have been applied to a project where you have been involved?
Answer The candidate should clearly understand the approach adopted. For example a formal Value Engineering study usually comprises a carefully structured ‘Job Plan’ which includes function analysis. The Job Plan typically comprises the following stages:
B Function Analysi
sC Idea generation
D Idea evaluation and selection
E Proposal development and validation
Stages B - D and often E are conducted within a workshop environment.
APC Trainer's advice is intended as guidance only and should mot replace your own study
By Stephen Hateley, director, Faithful+Gould