The paper "Value Management and Value Engineering" is a perfect example of a case study on engineering and construction. Value is the benefit that a client attains from the project. Value management is a process that involves a systematic and analytic method used in order to complete a project with the lowest cost while surpassing set levels of quality and performance. In the project above, a value management study is carried out on a proposed construction project of a facility in Dubai. The project proposes the construction of facilities by the local authority, which will provide leisure and communal services to the community.
The aim of conducting this value management is to identify unneeded spending, promote innovation, eliminate redundancy, improve team performance, optimize resources, and save time and money. Value engineering is defined as focused on the value and not the cost of a product. Value Drivers In the case study, the proposed project involves the creation of an all-round community facilities center on a site in Dubai. The value drivers’ analysis is crucial. It determines the benefits that can be attained from a project and the information obtained is used in decision-making.
Since the case study requires the creation of several communal amenities such as health care, education, leisure, local authority resources on one site, analysis of value drivers will be diverse. In the case of construction, a variety of value drivers are assessed and they include strategic analyses of monitoring and evaluation, electrification process, grievances from the surrounding community, land acquisition, and workforce development. The value drivers are maximizing business effectiveness, effective program management and delivery, the achievement of set financial goals, positive impact on the community, minimal operational and maintenance cost, minimal environmental impact, and effective complying with third party requirements( Marr 2006). Value Drivers Applied To the Case Study Third-party requirements involve requirements from statutory bodies and include health and safety aspects before, during, and after the construction.
Maximizing business effectiveness depends on whether the business satisfies the goals of the construction. This involves a comfortable environment for business and staff and production costs that meet financial goals. Optimum financial performance is achieved when the capital, maintenance, and operational costs balance with its total value.
The operational and maintenance costs of the building must be minimized as well as the environmental impact. To ensure effective project management and delivery, a project team of experienced professionals is constructed and must be involved from the planning to completion stages. The selected project team must be a mix of different professionals that are paramount in the construction industry. The project team will assess the project performance using key performance indicators in the industry (Swan et al 2004). The stakeholders in the project are the local government authority, business people that will use the facility, and the community that will be served by the facility.
The local authority’ s need is to provide local authority, community, and leisure services from the single facility. The community will benefit from the facility in leisure, communal and authority ways. The key risks that will indirectly affect the stakeholders are construction delays caused by less labor or shortage of materials. Others include planning delays caused by regulatory bodies hurdles, communal disruption due to environmental concerns or protests, legal compliance costs such as fines and breaches, additional costs caused by poor communication, negative media, consultants, complaints and mediators, and project cancellation due to community unrest.
These are the main factors that will directly affect the stakeholders in project initiation and implementation.
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