For some, a big red “STOP” sign flashes and the thought occurs, “Oh no, this value management team is going to come in and make us re-work everything.” In fact, value management works within the context of previous efforts. While tweaks and adjustments are likely, they will lead to better value, such as improved performance, greater sustainability, reduced schedule, reduced risk and capital and life cycle cost savings.
Let’s start with semantics; to me, the term value management encompasses value engineering and value analysis, though the terms are sometimes used interchangeably. We always analyze project value and we often use engineering disciplines to help us, but architects, cost estimators, operators, users and many others are usually involved in helping us manage value.
Plain and simple, the goal of value management is to build consensus and that means that the value management team does not work in a vacuum.
From the start, Faithful+Gould’s approach is to involve the owner and the designers in the entire process.
Working in tandem, there are no surprises because everyone is on the same page, every step of the way. The owner and design team understand why value management recommendations were made, what their function, cost and overall project implications are, what their advantages and disadvantages are and, finally, how they can be implemented. Again, no surprises.
Faithful+Gould’s specific approach to value management is a stepped workshop process that begins with preliminary activities. Following the initial goal of acquiring a deep understanding of the project, we work with the owner and design team to establish consensus on expectations, our first marker on the path to success.
Our workshop methodology follows a six-phase job plan endorsed by SAVE International (an international society devoted to the advancement and promotion of the value methodology) that includes a complete workbook and supporting documentation for each proposal, developed by the team during the workshop. Each workbook includes a description of the current design that was studied and the proposed design of the value management team, along with sketches as needed. In addition, each workbook summarizes the project and life cycle cost implications and lists the advantages and disadvantages of the proposed change.
The six-phase workshop culminates in an oral presentation by the value management team, but that’s not the end of Faithful+Gould’s value management services. Post workshop, a study report is prepared that includes comments from the owner and design team that were expressed during the oral presentation. At this time, workbooks are modified as appropriate.
Our next step is to calculate the maximum potential project and life cycle cost savings and tabulate a summary of total cost savings. Again, input from the owner and design team will be integrated into this summary.
The result of our effort was 157 creative ideas which, if implemented, can lead to a maximum construction cost saving of $70 million while still meeting the performance criteria for the project.
Our Certified Value Specialists have led well over 700 value management studies on many different types of projects. We’ve also performed value management on processes, standards, procedures and products, as well as for risk reduction and constructability. In each case, value was improved even in those rare cases where additional expenditures were recommended.
How can we help you improve your value?