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The planned project was regarding the requirement of a new office block to the client, which is a law firm. Their proposal is to build an office block in which they can use the top two floors for themselves, letting the remaining floors for rent.
In order to establish the value for the proposed facility, it is essential to apply the value management technique to ensure and analyse the functional requirement of the different stakeholders for the proposal. It will ensure to derive a common Goal/ Mission for the project, which will give value proportion to the client's business activities.
Why Stake Holder Analysis
Value management is a well structured, facilitated process in which team member's of the group have worked together to identify the value based outcomes of the proposed office to the different stakeholders of the proposal. Right through the application of the Value Management process, interest of the client has been the core point of brain storming session. However before arriving at the goal/mission statement of the project, it is essential to uncover the potential stakeholders and perform an analysis of the functional requirements of the stakeholders which will enable to obtain most favourable value on a level as determined by the client. It would also enable to consolidate the value analysis for the different requirements of the stakeholders in to a common goal/objective.
The team members started applying the Brainstorming tool to identify project stakeholders and define their personal/business objectives. This stage is essential in order to obtain all possible information about the party to be involved in the project thus providing better overview on the project as a whole. After brainstorming activity, the requirements & objectives of the stakeholders were defined by the team members are as follows:-
After acquiring the information through the stakeholder analysis, the next stage was to organize the information that would help the team member in deriving the functional requirement of the project. The function of the project is analysed by repeating the brainstorming activity. All the functioned listed was recorded on post-it notes.
Stakeholder Analysis through a Brainstorming session
Functional Analysis Identification of stakeholder
Through the FAST diagram client's interest are structured accordingly, by creating a hierarchy of functions, which are the requirements of the stakeholders.
Based on the above client/customer oriented FAST diagram, the project objective has to be positioned on the left side of the diagram to describe on the flow of how income can be generated, which forms the main/ primary objective of the client. Further, it should reflect the principal needs and interests of all the stakeholders.
Before arriving at a Mission/goal statement for the project, a careful analysis of the stakeholders and their requirements have to be established through a brainstorming activity and it should contain the following features:
To increase the confidentiality of the business
To increase the competence of the business by attracting more client and customers.
To provide comfortable infrastructure and services in the building to ensure client's customers interest.
To apply and accommodate the modern technologies to influence the business operation.
To provide good link with the neighbourhood and local area development.
To provide employment opportunities to the people around the local area.
To attract the potential leaseholders and determine the future tenancy under uncertainity.
Finally, the Client in the law firm should have to provide appropriate space to accommodate and maintain all their business function. From the stakeholder analysis which was carried over through FAST diagram, the project mission statement has been derived as follows:
"To create a place for law firm which will enhance/increase the law firm's performance and which will provide additional profit and value to the investment made".
2. C) Recommendation for the Clients to improve the value proposition of the project
There are four sets of stakeholders needed to be satisfied in this project while submitting a recommendation.
These are the identified stakeholders of this project whose respective expectation and their needs to be fulfilled. In the course of obtaining the best solution, each and every stakeholder should take part in deriving to the project mission statement to make sure that everyone's opinion has been measured. Because this proposed project will not only reflect the investors' need, but the law Firm's community as a whole. Most of the plans to improve value to the Client as discussed below, are primarily to reduce the construction cost, however, this propositions are not made to downsize the project value.
Result from the stakeholder analysis indicated that the primary objective of the firm in the project is to generate income by building a new office block to sustain business operation and lease office space. Conversely, options and different recommendations to this proposal can be investigated to offer better solution to the Client.
No. of floors to lease:
An optional recommendation is to maximise the revenue by building lesser no. office floor for to be rented out. This option may reduce the income of the client by reducing the possibility of leasing of office space. Contrarily they reduce the cost of construction. Renting out of the office block falls under the category of wants rather than the needs.
Therefore providing additional space is not the requirement of the client, but to develop the business by providing better legal services to the customers. A view of this in a different angle will make us clear that leasing is an option for the client to increase the income but not directly related to the client business function as legal firm. To remove the proposal of leasing the office space is an alternative to increase the project value for the client. It facilitates the client in developing their business services by not involving in needless business function.
Another alternative proposal is to improve the value of the project by renting out all the office floors of the buildings in an intention to create more project value to the client. However it completely blows apart the main business activity of the law firm. Even though, in this alternative, client has to compromise on the business activity, the potential returns from leasing six floors would be higher.
There may be many other reasons for the client's requirement for the new space. The existing building would not be in a position to sustain the technological and social changes. It is indisputable, that the value of old building would not be flexible enough to support the installation of technological changes. In these case client will have to think about the value created by the future trend of business.
After consideration of all the alternatives, the main intention of the client is to generate more income through the legal business and leasing activity. A decision on the returns expected by the client has to be decided before finalising the no. of floors to be rented out besides taking the top two floors for the legal business. The client has to decide on the optimum no. of floors to be leased out based on the risk management technique of the value management. The strategy the client has to choose for leasing the no. of floors to be leased out, should be to increase the project value of the proposal by yielding more returns besides sustaining the existing business.
Cost Savings during Construction
Reducing the construction cost will reduce the project value. In this case the reduction in the cost can be useful to achieve savings. Cost savings attained can be used by the client for further improvement of the business operation, thus creating the reputation among the customers
To obtain the space required by the client to support the business activity, it is better suggested for the client to refurbish the existing office space instead of developing a new space for the expansion of the business. This recommendation obviously reduces the project value for the client yet providing the same functional value. Refurbishment can be seen as another potential option rather than increasing the project value to develop the new building. Moreover many advantages could be achieved through refurbishment. Refurbishment of the existing space would allow the client to achieve the sustainability to the environment. Refurbishment technique would minimise the construction waste and could be a solution for the environmental related issues. Thus, the option for refurbishment would be able to increase value not only in financial terms but towards the sustainability of the overall development as well.
Comfort (lighting, temperature, adequate space)
The Light temperature and the adequate space can be constructed in a more cost effective way. The natural ventilation and lighting are better option which can be executed. The spacing inside the office can be done by temporary partition walls, which can be removed whenever there's a need for extra office space.
Impressive and Distinctive construction
Sustainable building is the current area where the Government and the Private construction companies show significant interest. Distinctive construction would add value to the proposed project, as it reduces the operation costs of the building predominantly. Some of the distinctive options are discussed for this proposal.
Green Roof: To propose a vegetation layer grown on roof top. It reduces the temperature of the roof surface and surrounding areas. It can be installed on wide range of buildings from industrial, educational and commercial buildings. The Extensive and Intensive are the two types of green roofs. Intensive green roofs are heavy and require a huge investment than the Extensive green roofs.
Passive Heating and Lighting: Passive design integrates the combination of the building feature to eliminate the artificial heating and cooling (Burgan et al., 2008). Passive solar heating is categorized into direct, indirect and isolated gain of heating inside the building. Passive cooling is very simple and is done by keeping the area from getting hot (Ugwu et al., 2009).
Solar (PV) cells: The Solar electric or the Photovoltaic system converts direct sunlight to electricity. It works whenever the sunshine (Cooke et al., 2007). The PV cells, instead of converting the sun's heat to electricity it frees the electrons while interaction with the semiconductor and captures the electric current. It helps to reduce the amount of electricity to be bought from other sources. It reduces the energy cost and saves a lot of it significantly (Schlueter et al., 2009).
Rain water collection: It is a viable method to achieve sustainability with regards to water resource. The Rain water is mostly collected in the roof of the buildings. From it, the water can be used for both drinking and domestic purpose (Jack et al., 2009). The basic use of this technology might be different from other but it helps to conserve enough water for the future purpose.
These available technologies will reduce the rapid growth of gas and electricity cost/price inside the building. It will cut pollution from fossil fuels including fine particles especially in the urban areas. It will improve the quality of the environment, by providing a sustainable environment with good health and comfort.
The Law firm can use the two floors for their own. Client can lease the remaining floors developed for a commercial purpose. Since it is a public firm the common people will be in need of free legal advice. The commercial complex like cafeteria, food store or a snack store can be rented in the bottom of the building to attract the firms. Leaseholders of good commercial capability can be identified by the client for leasing to achieve a good return on the facilities developed.
Health & Safety
Proper health & Safety requirements are expected to be installed in to the proposed building. Employers should be more responsible in order to implement safety of employees at the work place. Proper health & safety installations in the proposed building could add value to the proposal, as it mitigates the risk of any potential accidents inside the proposed facility and the contingency cost involved with that.
A well-maintained workplace can create the right impression, improve employee efficiency, and reduce your operational costs. Gutters, roofs, walls have to get regular inspection and maintenance. Proper maintenance increases the value of building besides increasing the operational period of the building.
Development of the local area (services, shops from the spaces rented)
The Parking zone can be installed near the building from which the revenue can be collected. The revenue can be used for the maintenance and the development of the buildings.