1. Definition and aim or VM in general and from the perspective of construction 2. Terminologies used in VM 3. Risks of VM in construction 4. Cost involved in VM

1. THE CONCEPT OF VALUE MANAGEMENT
LEOM TENG YU I15008562
YONG YING YEE I14006165
SIM CHIA YING I15008569
NG KIAN HUI I15008567

2. • To unify different views of value in
order to achieve the project’s goal
• To provide the best function at
the lowest possible overall cost

3. Definition : Value Management
Management
Process
Value for
money
principle
Systematic
Approach
Teamwork and
Multi-discipline
principle
Analysis of
function
technique
Stages of
project or
product
Whole-life cost
concept
Investment
return

4. Terminologies of Value Management
• Value Methodology
Refers to process, principles and techniques
Includes practiced at value planning, engineering,
and analysis phases.
• Value Planning
An aspect of value management to achieve
project value.
Sub-set of value control

5. Terminologies of Value Management
• Value Control
Concerned with managing value
Indicates a direct link to cost control
• Value Analysis
Associated with post-construction or completion
phase
Inclusive use and re-use stages
• Value Engineering
Describe the study of value

6. Risk of Value Management in Construction
1. Sufficient time for the study
– Value management exercise to be meaningful and
productive, adequate time should be devoted to complete
each of the recognized stages.
2. Completeness of cost information
– Difficult to predict inflation
3. Related function of components or elements
– Items or elements with related function are usually difficult
to quantity.
4. Uniqueness of construction project
– Identify the function of various elements.
5. Quality of end product
– Determine a product performs the best function at the least
possible cost.

7. 6. Selection of team members
– Wrong people may contribute nothing or negatively to
the success of practice.
7. Representation of original design team
– Existing team members are unwilling to agree and
accept any changes to the project.
8. Choice of facilitator
– A good and knowledgeable facilitator cannot be over-
emphasized
9. Support for the practice
– Level of support from clients, statutory or regulator
bodies.
10. Timing of the exercise
– Delay, amendment of existing design, rework and
resource will be waste.
11. New concept for stakeholders
– Change completely the existing proposals.

8. Cost involved in Value Management
Cost of facilitator
• Professional fee, transport costs, etc
• Experience of the facilitator, The type and nature of the project,
Made of engagement, Size and cost of the project
Cost of other participants
• Other members of the value management except facilitator
• Cost of the participants affected by the identified attributes
Cost of Venue
• conducting productive meetings.
• type of client, nature of project and procedure of the workshop
• include the cost of securing or renting the venue

9. Administrative cost
• insurance, office supplies, wages and benefits of accounting staff,
secretary, and legal personnel
Information Gathering Cost
• collecting information regarding function, cost, lifespan, and
physical characteristics of elements
Indirect and other costs
• not directly associated with actual value management
• buying equipment recommended by the value management
• altering or changing the original or existing design to accomondate
proposals