19-03-2012, 03:08 PM
Value and Risk Management Study Proposal
Assignment-D31VR 2008-2009 Value and Risk management.pdf (Size: 222.85 KB / Downloads: 58)
1. Introduction
1.1 Project Description
Techwatt Corporation is a small but fast growing IT company producing both
computer hardware and software systems. The company is considering investing
approximately £5 million as an expansion plan in a new regional head quarters.
No major decisions have been made regarding possible site location/ the specific
facilities to be provided. However, Techwatt expect the proposed scheme to
include the following
office accommodation for management and administrative employees for
12 staff
A workshop for hi-tech manufacturing process for 15 staff
The ability to receive visits from clients and potential clients for
meetings and tour facilities.
1.2 Scope of Study
Techwatt Corporation approached the JSPN Associates to carryout the risk and
value management studies for their proposed regional head quarters project in
order to
1. Develop the complete project brief in all respects and confirm the
decision to build
2. Ensure project is properly scoped and clearly defined before proceeding
further.
3. Assess possible risk after awarding the contract and prior to site set-up.
and to tackle possible issues with regard to project success.
2. Value Management
2.1 Introduction
Value management is a structured and analytical process that seeks to achieve
value for money by providing all the necessary functions at the lowest cost
consistent with required levels of quality and performance (Australian and New
Zealand standard AS/NZ 4183, 1994).
Value is the lowest cost to offer reliably the essential functions at the desirable
time and conjunction with the necessary quality and other performance factors to
meet user needs.
In simple Value can be defined as a ratio of function plus quality to be achieved
to its life cycle cost
Value = (Function + quality) / Cost
2.2 Value Management Intervention Point
It is evident through the research that Value Studies are more beneficial only at
six probable points as mentioned below in the project life cycle and as shown in
Value opportunity points are:
• Strategic briefing study
• Project briefing study
• Charette © – undertaken in the place of the studies at points 1, 2 and 3
• Concept design workshop
• Detail design workshop
• Operation workshop