Value and Risk Management Assignament

Topics: Project management, Risk management, Risk Pages: 17 (4833 words) Published: August 26, 2012
1.0 Executive Summary
This report is aimed primarily on the “Strategic Value Management” phase. This means the stages from developing the strategic brief to the decision to build to development of the project brief. SBE innovations Ltd (a Partnership formed between a private developer Arch Group Ltd and public sector local authority Cheddar City Council) desires to deal with their new development by building a mixed-use recreation and commercial centre. At the time of study the project was still in a very early stage and not commitments or decisions on the brief or project design had been made. The goal of this Value Management and Value engineering study is to develop the project brief by identifying the clients values and needs with respect to considering end users requirements and in so doing confirm that the decision to build was the correct one. After finalizing the brief the team looked at the project in terms of providing value for money. Information was gathered by personal interviews and questionnaires sent to suppliers, major clients, internal and external stakeholders prior to the study workshop. The brief was developed during the workshop and the team dealt successfully with both constraints and opportunities. Consolidating the common interest of the joint venture partners by providing health and quality of life for the citizens and achieving good finical returns on the investment. The cost models were kept to budget while not compromising on the quality or the value system of the client while effectively enhancing the overall image of the company. The recommendation was to proceed with planning and build within the timeframe. 2.0 Introduction

We, VRM Consultants Ltd a professional Value Management Consultants company, who specialize in providing Value Analysis (Value management and value Engineering) services to our clients on their chosen developments, we can assure our clients, SBE innovations Ltd, that this commissioned report will not only help to confirm their decision to build and enhance their business knowledge but also provide a springboard for easier, more informative decision making for their future business needs. SBE innovations has engaged our company to commission a Value Management and Value engineering report on their proposed new development as part of their ambitious expansion plan. As the client brief is not yet fully developed, this report will ensure and show how and when the Value Management and Value Engineering will be applied and the benefits in applying in early stage of the project. It will also help to develop and complete briefing phase and confirm that the initial decision to build is the correct one. As per the partnership agreement land will be provide free of cost and yearly operational cost to run the community buildings by the Cheddar City Council and project finance will be arranged by Arch Group Ltd. In return they will earn income from renting of commercial buildings. One problem facing the team from the very onset of the study is the relative inexperience of SBE innovations in PPP projects. This is the reason for inviting a professional Architect, Cost manager, Project Manager, Main contractor and Facilities Manager to the study to assist in this area. Another possible limitation is the budget of £ 9 million seems low in comparison to other project of a similar size and scope. There is also not a very precise understanding of what specific facilities are needed and this is identified as a further potential problem and needs to be addressed in the study.

Value Management & Value Engineering
The use of the terms Value management and Value Engineering has tended to indicate a method of applying the principles e.g. VM for project strategy and VE for detailed design. Strategic value management takes place at the beginning of a project. It looks at what the project must do. Initially when Value management was used in the manufacturing industry and in mid...
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