The individuals and organizations of the public and private sector has been under great pressure to achieve more and more with less and less, finding the resources to meet business needs and increasing in the demands might push toward sacrificing the quality and leads to client dissatisfaction with final output, this what the UK construction industry suffered during the last decade when the industry were underachieving and the client satisfaction with services was at the bottom, till a series of reports and studies conducted, like (Latham report 1994) and (Egan Report 1998) followed by a series and laws and legislations to turn the industry back to the right track and improve what exist..
One of main point presented was the value of money, how much you paid and what you got in other words, is the money paid worth the value of the delivered service or item, based on that the value management is a tool to maintain the balance between wants and needs and the resources required to meet these needs with maximum value and minimum cost…
As mention above the value management study will benefits the project through, minimizing waste, cutting costs with quality assurance, encouraging innovative ideas and problem solving, improving team communications and corporation during the project exaction phase, assessing the inputs and the outcomes, and providing certainty regarding project overall cost..
1. Value Management
To start the value management process certain things need to be defined like the type, size of the project? Who are the stakeholders? What are their goals behind establishing such Project, What is their value scale? How the project will be procured? And how much it's going to cost? To answer this question we are going to assume the answers for the purpose of research …
Project Brief:
City Hall or Town Hall is a governmental building that houses the council members and consists of the municipal departments and their employees, and it's also usually contains the governor (mayor) office, what makes it an administrative building of the city.
The city hall is sometime used to house activities that's improves and enhance the quality of life of community from within, it house various cultural and civic activities like: art shows, stage performance, etc. So these types of buildings often designed with great flexibility and variety for such events.
The decision to build such structure is completely governmental since the structure will be representing the authority of the government and house for the government's councils, so the government is consider one of the main stake holders represented by the council members and Mayer who would provide services to the public which considered one of the stakeholder too and represented by the local community members. So the stakeholders are:
Pre-workshop
• Establish and agree the workshop objectives
• Arrange and undertake any pre-workshop analysis
• Identify participants (project team and key stakeholders)
• Prepare and issue workshop agenda to participants.
The best way to benefits from a value management program is through brainstorming workshops this requires the VM consultant and stake holders and another multidisciplinary team to gather for a meeting to determine the type of function, quality and cost of a certain project in collaborative environment, the VM consultant is considered a facilitator leading the work shop through its various phases..
Methodology:
Identifying business needs - one day workshop:
The Workshop Phases are:
Information Phase:
The main goal in this phase is ensuring an acceptable understanding of the intended project aspects like: the project essential components function, design, operation plan and the areas with great chance of savings and the areas that require an enhancement...
The workshop start with general overview of the project activities to deepen the members understanding of the project, then it's followed by the designer presentation explaining the main concepts, objectives, design constraints, Specifications, and Drawings of the Project, the presentation also contains estimation for the cost and a financial backup plan for the explained project…
Then a Function analysis of the project which it's a part of the information phase to insure that everybody knows what the project functional requirements are, This phase practiced by first analyzing the project as a whole then its components to determine its basic and secondary functions
The function analysis is part of the value engineering process at this stage:
The main components of the project are Specified
The function of these components are defined
Determining the supposed cost for each component
To study the function, a function analysis system technique (FAST) diagram is used to help the team to envisage the project components…
2. Creativity Phase:
In this phase the team will try to come up with new ideas and options that serves the same function but with lesser cost and improve the existing basic functions, this achieved by brainstorming technique ,and applied as follows :
The team will start by having a lot of ideas inputs which at this stage theses ideas are not evaluated cause that's may hinder the idea generating process and block innovation of the team, and as the team members are form variety of disciplines, the ideas generated will be suitable and associated for the project functions …
3. Evaluation Phase:
Ideas generated in the previous stage now are subjected to evaluation and testing due to short time only 4 to 6 ideas are selected which are chosen depending on criteria developed through the team brainstorming and discussion after a comprehensive definition of the project components, each comparison criteria have a definition that will help the team to weight each of the successive alternatives…
4. Development Phase:
During this stage an ideas for alternatives is selected, the team will start refining and preparing for the presentation this include preparing sketches and a narrative, the alternatives should be compared to the original to define the advantages and the disadvantages And the initial and life cost cycle for the proposed alternatives, the more detailed the proposals the more it help to make a cunning decisions..
5. Presentation phase:
In This phase the team will present the refined and developed alternative proposals to the decision making parties with summarized draft of the proposal explaining the life cycle cost saving and the rationale behind these proposals..
After 5 to 10 days from the date of finishing the workshop a formal report is produced recording detailed proposals summary and the process narrative at the same time the decision makers will be considering the recommendations advised by the VM team, and held a meeting to discuss whether to approve the proposals or rejects them…
II. Risk Management
The complexity in construction and design process and long project realization duration in addition; the industry requires a multilevel of organizational involvement which will lead to great number of personals with variety of interests and skills who will need to exchange information and instructions details during this the unexpected event that may inflect loss to the beneficiary parties' during project life cycle are defined as risks..
The risk management at macro scale for a project with estimated cost, time and quality is that the project would be deviated from these expectations, at the micro scale the operation at site might be delayed due to bad weather or a delay in delivering material on site due third party lack of competence, as a result the activates and project completion date will be delayed.
All construction Projects encompass some kind of risk, the main purpose of risk management is to provide a sense of potential risks involved in specific project and identify the actions to avoid or minimize the effects of these risks and response strategy in case of occurring, the process of risk management is applied to different project stages..
Methodology:
Risk Management workshop:
Risk identification:
The risk identification phase is where all possible risks that might inflect damages or loss upon a construction project are identified. it's advisable that the key personal and decision makers are consulted regarding these risks, brainstorming is the technique is used to identify these risk where every member list the risks that might affect the project within his discipline and its probability of happening, then the risks are structured in hierarchal diagram as shown below :
EXTREME
Accidents
Strikes
Political Changes
Bankruptcy
Mother Nature
Finance
Sabotage
Etc…
Global
Politics
Rules and Regulations
Finance
Currency
Market
Competition
culture
Etc…
LOCAL
Organization
Project Condition
Time / Cost
Interface
Contracts
Management
Productivity
Etc…
Reduced Ability to Control Risk
Risk Analysis:
In this phase the risks are evaluated and arragned according their importance and effect to the project and likelyhood of happening.the risk appraisal will assist the team to study the invidual risk damage and the damage of all the risks combined, the analysis can help the client to make assertive decitions regarding the project invesment through the anticipated risks profile..
There are two analyzing approaches, the quantitative analysis: take an objective unbiased approach of analyzing the risks because its results are based on numerical data which allow for more accurate decision making basis. and the qualitative analysis depends on the personal judgment and experience of the team cause there is no or litter numerical values during the risk assessment, the team are enforced to follow such approach of analysis due to lack of information or demand of a detailed analysis, but this is not meaning that this approach is unuseful or cannot contribute to the risk assessment process in fact both types can be used accordingly..
Risk Response:
After defining and analyzing the risks which are associated with project during its whole projects life cycle, there should be a response plan or strategy to these risks which are dynamic and evolving with project and might generate a new risks if the plan failed to solve them. Generally there are three strategies concerned with risks:
Risk Mitigation or Reduction:
Avoiding risk or minimizing its effects are basic methods, the client may reject the proposed project to avoid a certain risk or might accept it, but will try to minimize it effects and this can be done in many ways like refining the existing design and more detailed studies regarding the geographical, environmental, and geotechnical aspect of the project or by using different construction methods and technologies.
Risk transfer:
Risk transferring is a commune contractual agreement between two parties or more, transferring the liability of risks from one party who doesn't have sufficient resources and skills required for dealing with these risks to someone who has sufficient skill and capability of preventing risk form happening or reducing its effects in return of financial compensation, though this strategy might look excellent on paper but there is a need to consider the following factors like is the party that will bear the risks capable of handling them, does he have the sufficient skill and experience? Second, how much the financial compensation for transferring the liability compared the risk damage cost?
Risk Retention:
Risk retention sometime is the only solution concerning risks, where the party holding the risk is the best one to contain it, if he failed to manage the risk will have to accept the consequences..
Workshop Agenda
08:45
Coffee
09:00
Introduction
Description of the workshop Process
Workshop Objectives
Information Phase
Project Brief
Workshop Objectives
Creativity Phase
Generating Proposals and activities (Brainstorming)
12:30
Lunch Brake
13:30
Generated Proposals Review and selecting criteria
Analysis Phase
Generation criteria to assess the proposed options
Weighting the successive options through criteria and project objectives
Development Phase
Preparing Narratives and sketches for the selected option
Presentation Phase
Conclusions And Recommendations
19:00
Close
