Value Management Practice 1 Learning outcomes To identify

Value Management (Practice) 1

Learning outcomes • To identify the application of Value Management in construction projects

Aims of Value Management • Value for money • Satisfies the users/owners needs 3

How does VM help in construction • Any construction project should only be commissioned following a careful analysis of need • Failure to carry out this analysis will cause problems at subsequent design and construction stages • Many projects suffer from poor definition, which is likely to result in cost and time overruns, claims, user dissatisfaction or excessive operating costs 4

Case study (London Underground) Better known as the Tube, has 11 lines covering 402 km and serving 270 stations. Opened in 1863, it is the world's oldest underground railway network, and one of the largest.

Project aim & objective • To facilitate a suitable (effective, efficient and economical) fire fighting system for London UG • To provide a safe environment for passengers and the staff

Case study details • Fire system • Sprinkler system • VM study was conducted just prior to finalisation of brief

Agenda for VM workshop (48 hr)

Agenda cont. .

VM team structure • VM team coordinator • Project manager • Masterplan architect • Mechanical engineer • Electrical engineer • Quantity surveyor / cost engineer

VM Process (Job plan) • Pre-study • Information gathering • Creativity • Analysis • Evaluation • Presentation • Implementation

Pre study phase • Logistics for VM study were organised • VM team was established • VM team coordinator was given a brief description of the project

Information phase • Gather required information • Determine the areas with the greatest potential for saving • Identify needed improvements • Cost estimates were prepared

Function Analysis Item Description Function Verb 01 Total Noun SPRINKLER Store Water SYSYEM Distribute Water Cost (£) Worth (£) Kind S 130, 000. 00 B 180, 000. 00 100, 000. 00 84, 000. 00 Provide Back-up RS 84, 000. 00 Screen Vision S 15, 000. 00 House Pumps S 40, 000. 00 449, 000. 00 184, 000. 00

Generated ideas • Reduced sprinkler areas • Reduced distance between sprinkler heads • Pond storage to be replaced of tanks • Direct mains feed system to be replaced of tanks • Position tanks • Localise tanks (additional tanks/pumps) • Combine sprinkler and bulk water storage tanks

Cost Saving • Estimated cost for sprinklers = £ 449, 000 • Cost after VM study £ 184, 000 • Cost saving = (449, 000 -184, 000)/(449, 000) = 59% 16

Your questions? ? ? Thank You