How The Value Management Is Being Utilised In TodayS Construction Industry Accounting Essay

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This dissertation of project will investigate how the value management is being utilised in today's construction industry in United Kingdom and to investigate how the value management was used in the UK construction industry.

The project will consider how the connection between the size of the project and the level of use of value management. The project will also aim to discover whether there is a connection between the size of a company and the level of value management utilization.

It is so hard to find the company as complete however the level of importance of value management in a company places can be judged to a certain by the level of its use within a company, and also whether an organisation provides its employees with vale management training and as such this piece of work shall aim to uncover if there is a n association between the size and type of a business, and the level of training which it provides.

The main things involved were about the business and the projects. The data will be collected through questionnaire sent to a sample of construction professionals in Dubai, Srilanka and in UK.

The study will conclude that there is an association between the size of a project or business and the level of use of value management. It will also conclude that there is no any association between the type of construction organisation and the level of training provided to employees; however there is a association between the size of an organization and level of training provided to employees.

Chapter 1: Problem Statement and structure of Dissertation

1.1Problem Statement

The value management is the thing which is prepared for the estimating and the classification of the project scope and the means which there can be obtained by the value for money using a specialist facilitator and workshop techniques. According to the institute of value management, the value management has their principles of approaches;

A continuous awareness of value for the organization, establishing measures of estimates of value, monitoring and controlling them;

A focus on the objectives and targets before seeking solutions;

A focus on function, providing the key to maximize innovative and practical outcomes

What is necessary for desired userThe concept of value is on the association between the satisfaction of many differing needs and the resources used or the most satisfaction of needs, more the value. Stake holders, internal and external clients may all hold different view of what the value is. The aim of the value management is to resolve these differences and enable an organization to achieve the greatest progress towards its stated goals with the use of minimum resources which you can (see the figure below)

Satisfaction of needs

Use of resources

=

Value

Everything that is required to satisfy needs

It is very important to understand that value may be better by more the satisfaction of need even if the resource used in doing so increase provided that the satisfaction of need increases more than the increase in use of resources.

Nowadays in construction, customers are mostly concerned with achieving value for money in their construction projects. In response to this demand, a developed number of companies claim to offer the value management as a service, however there is a confusion what actually comprise what actually comprise the value management with some commentators going as far as questioning whether value management differ from the established produce of cost management (Green, 1992)

The previous day the value management is not that it is a cost cutting exercise, or a methods which is to be budgeted within a projects, rather as a mean of achieving best value for money to client value management may raise procurement costs and the price of a project up front, If it means it will increase the value/function ration (Kelly et al, 2002)

Ahsworth and Hogg (2000), claim that for a 1% fee on construction cost, it is possible that a total saving between 10%-15% on construction costs can be achieved. It is hard to prove how accurate this estimate is, however the benefit to client are widely touted, with the Egan report of 1998, also claiming a saving of up to 10% possible. However other the commentators such as palmer (1996) say that the effectiveness of value management depends mostly on the personalities involved, the timing of the study, the interaction of the team and the role of the client and the input of the design team, whilst going on to say that as functional analysis often gets ignored the whole value management process is often no more than a cost cutting exercise.

Most professionals would agree however that value management does have its merits. What this in mind it would seem senseless were value management not to be utilised to its full potential. However difference sources were seem to suggest that the case is that not all, or really very few organisations use value management its full potential ( Fong,2005) This is because of lot of understanding of value management or it is being realize at the wrong time. Kelly (2002).States that the previous value management is realising that the more effective it will be. If the limits of the construction scheme are clear from the Inception, then the design and briefing can be associated with the time, cost and quality constraints of the customer.

With all these points in mind this piece of work aims investigate how value managements being utilised in today's construction industry in the UK. Furthermore, to investigate the views of organisation and individuals in the industry with regard to value management.

1.2 Aims

The aim of this dissertation is to investigate how the value management is being utilised in today's construction industry in UK, and to investigate the views of companies and industrials in the industry with regards to value management, by examining how it is spread widely the use of value management, It will be useful to spread projects up into categories based on size to determine whether there is a connection between the project value and the probability of value management being used, and as such test the suggestion,

S1: Value management is important in larger projects.

The scope of this piece of work furthering work by Hogg (1999) and Hander son (2006) whether there is a relationship between the size of a company and the level of value management utilization and in doing so testing the suggestion.

S2: Value management was not utilised in smaller UK construction industry rather than the larger companies.

It is hard to measure the view of a company entirely even though the level of importance a company places on value management can be judged to a certain extent by the level of its use with a company, and also the company should need the employees with value management training to design between companies, they will be separated into groups based on size and type and as such the following suggestion can be tested;

S3: There is no any group between the type of a company and whether value management training is given.

S4: There is no any group between the size of company and whether value management training is given.

1.3 Objectives

The objectives can be realised in meeting some of these intends are;

To expose whether the value managements basic principles are understand amongst construction professionals in the UK, and to employ a testable definition to make it possible to distinguish whether authentic value management is being employed.

To research an investigate the distinguish of boundaries between small, medium, large and very large companies in order to investigate whether there is a connection between the companies size and utilisation of value management.

To research an investigate the distinguish of boundaries between small, medium, large and very large projects in order to investigate whether there is a connection between the companies size and utilisation of value management.

1.4 Structure of dissertation

Chapter 2 of this research will aim is to carry out a comprehensive critical review of literature and past research, incorporation with both accepted and historic literature but also the most up to date material relevant to the topic the literature, in particular the methodologies, data, analytical techniques etc. So as to ensure the objectives evaluation takes place. A different views and theories will be presented through synthesis and evaluation this section of the research will aim to provide a theoretical framework by;

Essential of topic and terms

Noting items of theory

Noting major references

Executing searches for literature appropriate to the topic and problems

Obtaining and reviewing a range of sources

Produce a review of the material

This research will aim investigate whether or not value management is being fully utilised in the construction industry, in the learning of a range of professionals from differing background s in the construction industry .To measure a general opinion on the topic, it will be necessary to gather research which is relevant to the aim, objectives and the suggestion . this research was done by the journals, books, e-journals, the internet and publications such as building magazine.

Chapter 3 will assessed by the possible mean of data collection, which is that the most appropriate method can be implemented this chapter of the research will be to find the most suitable method of measure the thoughts and views of construction professionals from different backgrounds, to determine whether value management is there knowledge of experience is being used fully in the construction industry. In this chapter will also evaluate the type of data that will be collected.

There are two types of data which can be collected in order to test the assumptions namely quantitative data and qualitative data which is a combination of both plan may help to achieve a more conclusive end result; Naoum(2003) describes qualitative research as subjective with an emphasis on meanings, experience and description with (Fellows and Liu, 2003) describing qualitative research as subjective whilst providing a 'richness' of data that cannot be obtained from quantitative data.

And finally this section of the dissertation will measure of formal inference to determine which method is most appropriate given the type of data to be collected.

In the chapter 4 of this dissertation the method which we discussed before will be implemented to produce and analyse a primary data, and enabling the earlier outlined aims and objectives to be met.

When the results have been fully examined and checked, they will be visually presented in the form of tables, charts, diagrams and graphs. This will allow the answers of results of the tests to be visually conveyed. Statistical inference is employed which is to be done by the applicability of the results to the issues under examinations. The results will be use to prove or disprove the suggestion.

In chapter 5 will be the results to conclude in the context of the theory to conclude in the context of the theory and literature review, and in light of the aims objectives set out at the beginning of the project. The finding will be considered in light of theory with the scope by advancement of knowledge. A critical review of what has been achieved throughout the course of the study will be carried out. This will allow the recommendation to made for the further works to be carried out.

1.5 Principal related work

Ashworth and Hogg K (2000) Added value in construction. Essex, Pearson Education Ltd

Hogg K (2000) Factors inhibiting the expression of value methodology in the UK construction sector : SAVE international conference proceedings available at;

http://www.value-eng.org/pdf_docs/conference_proceedings/2000/2012.PDF

Male, S & Killy, J (1998) The value management Benchmark; A good practise framework for clients and practitioners. Thomas Telford.

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