VM is a systematic review of the essential functions or performance of a capital project to ensure that best value for money is achieved. It takes an overall view of the function of the facility as well as capital and recurrent costs.
The completion of a Value Management (VM) study is a mandatory requirement, to be undertaken on completion of the Investment Evaluation. A formal VM study is required to be undertaken on projects over $5 million.
VM studies may be conducted at the completion of any phase of the capital investment process. Best results are likely to be obtained from VM studies undertaken at the Master Plan, Feasibility Study and Schematic Design stages.
The benefits of VM have found to be most effective when an independent facilitator of the consultant/contractor team, is appointed.
VM studies are opportunities to review and challenge assumptions as well as encourage creative and lateral thinking in order to derive better value solutions to service delivery requirements.
In many instances, the results may lower costs without compromising agency’s needs, better fit the purpose for which resources are allocated, ensure that facilities meet current Government/Legislative requirements, reduce recurrent/operational costs, improve communication and afford opportunities for innovation.