Value management practices of leading UK cost consultants

Abstract

Value management (VM) is widely accepted as an important tool in the management of projects. Through a series of semi-structured interviews, this paper attempts to add to the qualitative exploration of VM, by investigating the attitudes and experiences of VM facilitators within major UK cost consultancies. Clients cut across all sectors, but relatively few subscribe to a formal VM process. Despite the acknowledged importance of early interventions, the focus for many VM studies tends to be at spaces and element levels, rather than at the earlier concept level. VM continues to be used as a cost-cutting exercise, particularly so on projects which are experiencing problems. Formal VM rarely extends beyond tender stage. Workshops remain the common format, but these are often compressed, due to commercial pressures, into a half-day. Techniques are adapted to suit the needs of the project, team and client rather than being rigidly applied according to the theoretical approaches outlined in the literature. The potential to integrate VM and risk management (RM) services is recognized by all, although such integration is yet to be fully developed and implemented.Quantity surveying practice, risk management, value management,

Taking stock of project value creation: A structured literature review with future directions for research and practice

“…Later it developed into project management in general, and international standards have been established (e.g., European Standard, 12973-2000, 2000. The focus today is to reduce the capital cost and in this way to increase the value of the project, as the benefit or function is maintained (e.g., Ellis et al, 2005;Green, 1994). It has also been argued that value management is stagnating (Fong, 2004), as it lacks a theoretical underpinning (Male et al, 2007), and we see potential in the thoughts of Male et al (2007), who suggest value to be the management style for projects as well as Gillier et al (2015) introducing a design perspective.…”

Letters to the editor

“…Letters to the editor Dear Sir, Wood and Keel (2007) provide a spirited response to Green and Liu (2007), which we published as a reply to Ellis et al (2005). We would agree with the Editor that such debates break out all too infrequently and we are delighted to contribute further.…”

“…A casual reader might think that we had been hypercritical of Ellis et al (2005), which was certainly not the case. Perhaps our writing style may indeed have been a little too 'sparky', but academic writers all too often err in the opposite direction.…”

“…We would also note that it was Ellis et al (2005) who concluded that VM practice within QS practices is 'pragmatic and competent and not particularly sophisticated'. Wood and Keel subsequently point out that many of the individuals surveyed are 'respected figures, working with national and international clients'.…”

Journal of Sustainable Development, Vol. 2, No. 2, July 2009, all in one file, Part B

“…Internationally, VM is an emerging paradigm that focuses on continuously increasing the value provided to the client and is widely accepted as an important tool in recent management of construction projects (Ellis, Wood, & Keel, 2005). The construction industry is an important field for VM at the international level (Kelly, Male, & Graham, 2004) as it is also critical to the success of projects since it provides a basis for improving value for money in construction (Ashworth & Hogg, 2000).…”