Importance Of Value Management In Construction

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Recommended: Pitfalls of Value Based Management

Why Value Management:
The main objective of any construction project is to assure that the project completes on committed time and within the budget allocated. Two major challenges faced are Time and cost which increase the urgency to adapt new and innovative techniques for the project to be successful.
Reduction of cost of construction is persistent goal for any construction firm. One of the most prominent methods for cost saving/reduction is implementation of value Management. Value Management plays a crucial role in cost saving with no compromise in quality and enhancing the performance.
What is value Management?
Value Management is a systematic application of identified techniques which identify the function, establish the value of those …show more content…

Also, a large number of firms/companies are directly or indirectly associated with construction industry. For example, houses, hospitals, schools, offices, townships as well as urban infrastructure, roads metros, railways, airports, highways, power plants, ports, dams …show more content…

The need for advancement in order to sustain the competition has become predominant in every firm. So, they are coming up with many new, innovative tools/techniques/solutions to reduce the bid price as lower as possible.

One of the main tools which are widely being implemented worldwide is Value Management. Recently, implementation of VM is must as per many standards being followed internationally. It became a part of project and it is a continuous process right from initiation to hand over. It is being implemented even in operation and maintenance phase.

Value management is a powerful tool in reducing cost while improving or maintaining quality and performance requirements. It improves decision making for optimal spending of funds. The main reason for its success is its ability to identify opportunities to eradicate unnecessary costs along with assurance of all critical factors that meet/exceed satisfaction of customers.

There are many tools and techniques which are being adopted in process of Value Management. The major tools identified used which are being used worldwide are as follows:
• FAST Diagram
• Life Cycle Costing
• Creative thinking

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