Jubilee Line Extension Contract 102 -
Westminster Station Value management embraces the
whole value process and includes value planning and engin-eering
and value reviewing. The principal objective is to enhance value.
It provides the frame-work of systematic procedures which embrace
the overall process including concept, definition, implementation
and operation of a project. Value planning addresses the value
process during the conceptual phase. It is thus the initiation of
how value is planned into the projects.
Value engineering is at the heart of the value process and focuses
on the design and construction phases offering:
- an increase in value to the client due to the elimination of
unnecessary cost inherent in every design
- a focus on the function as the major difference between VE and
other cost reduction approaches
- creativity phase as a separate stage in the job plan
- life cycle costing (LCC) is used where appropriate in the
evaluation of design solutions with reference to clients’
established value criteria
- an integrated team approach
Value reviewing monitors the whole value process and completes the
feedback loops for subsequent work and continuous improvement
through value planning and value engineering.
With appropriately structured contracts value engineering can
create opportunities to manage risk and achieve win-win potential
for all of the team . There is a strong synergy between value
engineering, risk management and the observational method. Risk
assessment adds value by promoting better decisions and
demonstrating that they are optimal and by systematically
minimising the impact of all risks to the project. The
observational method focuses on cost and or time savings during
construction and necessarily embraces a procedural system to manage
risk.
