Value management (VM) is a creative organised approach to remove unnecessary cost in design and to increase value for the client. In practice a well organised VM process can make a design much better and generate significant savings for clients. This chapter explores how VM theory is implemented in practice using a case study identifying the key cost drivers and value opportunity points. A brief description of the project situation is provided followed by a discussion of the rationale for VM, when, where and how VM was applied in the design and construction process. The key tools used for VM such as issue analysis, open book auditing and workshops to explore ideas and to identify unnecessary costs or cost savings identified are also discussed with examples. The chapter concludes with some reflection on the benefits of VM.
22.2 Why VM?
A single, design and build tender was received for a proposed new build supermarket situated within Kent, which exceeded the client’s recently approved budget by +£640, 000 (ca. +22%). Seeking an increase to the budget was not an option. This created a challenging issue, as there were tight time constraints to maintain procurement and construction programme milestones and therefore ensure the client’s proposed store opening date and forecast income were not compromised. The client had a clearly defined brief from a ...