Partnership a private developer and public sector

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SBEinnovations Ltd is a partnership formed between a private developer and public sector local authority for the purpose of developing a mixed-use recreation and commercial center to stimulate development and enhance the local community. SBEinnovations Ltd is committed to a high quality scheme that will be fit for purpose for many years to come. Both partners are keen to maximize value for money from the project and open to innovative and creative interpretation of their brief to ensure a successful project. SBEinnovations Ltd is determined to engage the teams of Value Management Consultant (facilitator) to expert advice on applying Value Management and Value Engineering to the project to ensure the value for money and to confirm decision to build.

2. Objective

The augmentation plan still at the pre-brief stage and the facilitator have not yet committed to any major decisions on the brief or design. A budget of '9million for capital works has been established. Due to the both clients' lack of construction industries experience, the main objective of this study shall focus on;

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2.1 Value Management Objective;

* Examine current practice and the scope for improving it by innovation in products and process.

* Identify specific actions and good practice, which would help achieve more efficient construction in terms of quality and customer satisfaction, timeliness in delivery and value for money.

* Identify the methods and the supporting processes needed to achieve the objectives and select the teams.

* Set targets for performance and use of resources for each of the functions identify in the most effective manner for the organization as a whole.

* Minimize risk of loss and unnecessary expenditure by identifying potential risk at early stage and mitigate through the development of risk amelioration strategies.

2.1 Value Engineering Objective;

* Avoid communication breakdown. Project scopes are conveying efficiently between various parties involved via improved team working with joint ownership of solutions.

* Maximize value engineering by ensuring all the necessary functions are achieves at the lowest total cost consistent with required levels of quality and performance while satisfying the range of user requirement.

* A structured approach to the justification and elimination of unnecessary cost, which provides neither use, life, quality, appearance, nor customer features.

* Quantify the scope for objective of construction efficiency and derive relevant quality and efficiency targets and performance measures, which might be adopted by local construction.

3. Value Management Workshop Process

As an efficient approach for evaluating this augmentation project, the facilitator brainstorm the study of value management workshop segmented into three workshop activities, that is consists of pre-workshop, workshop study and post-workshop. The structure of benchmarked value management mechanism as per enclosed Appendix 'A' page 11.

3.1 Pre-workshop

3.1.1 Client Information

In this pre-study information stage, the facilitator has numerous discussions and collected all the key significant information from both clients. The both clients will be provided necessary information to facilitator to produce the workshop agenda base on the company objective and vision. After collected and integrated all the information from both clients, the facilitator will prepare a strategic brief to clients. This report is importance for the SBEinnovations Ltd to make decision either to build or not.

Conclusion, the SBEinnovations Ltd brainstorming to build new mixed-use reaction and commercial center complied with (organic agriculture village and green concepts). The VM workshop can be proceed to project briefing stage and the facilitator will recommend a list of participant to the clients.

3.1.2 Participants in a VM Workshop

The responsible and duties of each participant in the VM workshop are as per Appendix below;

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3.1.3 Strategic Briefing Study

The value and strategic briefing study involves a day workshop and will be conducted at VM Consultant Head Quarter office. The VM workshop required the intelligent members' participate to satisfaction and successful delivery the workshop programs.

The agenda are accompanied by a summary of the pre-workshop details and distribute as an information pack to the workshop participants prior to the workshop. The value management agenda is schedule as per enclosed Appendix 'B' page 12.

The design team must be complete the master plan sketch design, soil report, environmental report, medical report, foundation design, prefabricated structural design, M&E design, weather statistic report, culture report and education report one week before the date of the study and sent to facilitator for circulate to all the participants during the week of preceding the study.

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3.2 VM Workshop (Job Plan Function)

3.2.1 Information Phase (Phase 1)

In this workshop study information stage, all of the available relating to information to the project and relevant to the stage under review is gathered together. The objective of the information gathering is to identify the main and secondary functions for each part of the project. Meanwhile, identify the number of analysis required to calculate costs incurred by each part, as seen by the client organization and in clear unambiguous terms. The functions of the information being explored are;

3.2.1.1 Client Need

* Enhance the health, wellbeing and quality of life of its citizens.

* To achieve a return on their investment from the commercial aspects of the project.

* Mixed-use recreation and commercial center to stimulate development and enhance the local community.

3.2.1.2 Client Wants

To create a hub that facilitates community involvement, improves health and education within the community and stimulates commerce through business and leisure facilities.

3.2.1.3 Budgetary

The budget of '9 Million allocated. The budget shall be altered to adapt to the actual site condition and no allowance for floating.

3.2.1.4 Time

Duration of design & construction period is 8months. The delaying of the construction period will affect the value money and image of the clients. Since the period of the project is so constraints, the ideas for fast track and prefabricate or modular concept will design to comply the completion period.

3.2.1.5 Project Constrains

To achieve target aiming from the strategic briefing study, appropriate facilities, clear guidance, easily understood objectives and adequate follow-up are considered essential.

3.2.1.6 Function Analysis and Function Diagramming

This stage the function analysis develops a systematic breakdown of a project's key deliverable into clear elements of functionality. The analysis process and development of the F.A.S.T diagram helps to develop a better understanding of why the proposed project structure needed and what it is required to do. This enables the VM workshop team members to develop innovative alternative solutions to satisfy the client's requirements. The VM workshop team member sorted out all the brainstorming prior to F.A.S.T diagram as per Appendix 'D' page 14.

3.2.1.7 Element Cost Planning

An appointed Quantity Surveyor has prepared the costing technique aimed at ensuring that design and project are cost affective by checking that each element of the project or design within a predetermine cost.

Not explicitly concerned with value. The breakdown estimated cost brainstorming as shown in Appendix 'C' page 13 would provide to the each participant member teams' prior efficiency to monitoring the budget of design.

3.2.2 Creative Phase (Phase 2)

In this creative phase the VM workshop team put forward suggestion to answer the functions that have been selected for study. The facilitators apply the brainstorming benchmark to generate ideas in this creative phase. This benchmarking requires a group to consider a function and contribute any suggestion that will answer that function. All suggestions are noted and none are rejected on the ground of apparent inconsistency. The brainstorming benchmarks are indicated as follows;

3.2.2.1 Internal and External Environmental Considerations

* Laws and Regulations of local, national or international.

* National and international customs, codes of practice, social and economic behaviors.

* Market conditions, competitors and suppliers.

* Physical boundaries and infrastructure.

* Limited availability of resources.

* Ecological environment.

* Internal policy and organization rules.

* Culture of the organization and relationship between people.

3.2.2.2 Design and Concept of construction

* Design and concept of construction should comply with environmental regulations, which in the private industry or public government institutions to help clients steer clear of possible fines, legal action or misguided transactions.

* Adequate parking space at adjacent building area.

* The farmhouse and commercial center should construct using prefabricated units as precast wall, precast staircase, prefabricated frame system (i.e. steel structures and lightweight roof truss system), flexi wall partition and prefabricated bathroom. The benefit of this system is recyclable materials, useful, aesthetic, economical structure, eco-friendly, low maintenance cost, minimizes health and safety risk, space-saving advantages, durable and good engineering practice.

* Available facilities to handicaps, disabled, senior citizen, expectant women and youths. (e.g. clinic, nursery, helper, transportation, and etc.).

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* Adoption to use modern methods of construction for foundation as injection pipe system. This will free of noise, vibration or pollution and this system meets the most stringent environmental protection requirements.

3.2.2.3 Safety and Measure ' Reduction in the number of accidents.

* To ensure that all procedures within the company conform to health and safety regulations, financial policies and legislation such as equal opportunity.

* Plan to reduction in the number of accidents

* Adoption of Fast Track technique will improving on site safety and reduces labor force shortage in the construction.

3.2.2.4 Location ' Ease of accessibility and smooth logistic flow.

* The soil, forest and environmental suitable for organic agriculture farming.

* Adjacent to public transport route.

* Disabled friendly to facilities available (e.g. disable car part with coverage, ramp, wheel chair, ramp and etc.).

* Avoid traffic issue for logistics.

* Overall layout and orientation should be planed to maximize the land usage.

3.2.2.5 Timescale or duration ' To ensure project complete within an appropriate duration.

* Masterwork program shall provide and comply by all parties involved and critically indicate the milestone.

* Select the competent and potential principle contractors to reduce the problematic to delaying the project.

* Using modern method of construction as prefabricated and modular concept construction.

* Carrying out alternative plan when the construction progress behind schedule.

3.2.2.6 Budget ' To ensure the project complete within cost plan.

* Design and built contract to be adapted in this package.

* Allowance of preliminary, contingency, provisional and prime cost sum for unforeseen circumstances.

* The cost plan estimated as per Appendix 'C' page 13 in order to avoid cost overrun.

* Closely monitoring, updating and controlling the budget of engineering design changes.

3.2.2.7 Quality and Assurance

* Optimize whole-life design quality and cost.

* To determine and document any areas that may need improvement.

* Inspecting and sampling the entire manufacturing process is another part of quality assurance.

* To review the current policies and improvise plans to improve upon the existing quality standards.

* To review and analyze the effectiveness of the modifications made.

* To educate the sales and marketing departments regarding the specific requirements of clients.

* Minimizing and reducing the long-term maintenance cost for all the engineering design and element proposed.

3.2.3 Evaluation Phase (Phase 3)

In this phase, the VM workshop teams evaluates the ideas generated in the creativity phase using one of a number of techniques, many of which depend upon some form of weighted vote. This stage forms a crude filter from reducing the ideas generated to a manageable number for further study. Furthermore, the VE study will evaluating how well they meet the required functions and how great will the cost saving will be.

3.2.4 Development Phase (Phase 4)

After evaluation the summary of acceptable ideas, the objective of this stage is to investigate in considerable detail for their technical feasibility and economic viability. The VM workshop teams will again consider the worked up ideas and all those that either cost more than the original or are found to reduce quality are rejected.

3.2.5 Presentation Phase (Phase 5)

The facilitators present the refined ideas to SBEinnovations Ltd for further decisions and actions. The complement supported by specification, preamble, drawings, calculation and cost. It helps the participants focus on the main agenda and solutions of the workshop and prepare formal report. These form the basis for the proposal to be implemented as a consequence of workshop.

3.3 Post Workshop Activities

In this stage, the SBEinnovations Ltd will define the objective key to achieving the success of the said proposal project from the VM workshop study report.

SBEinnovations Ltd believe that significant value improvement and cost reduction can be gained by the integration of design and construction. Therefore, the feedback results will continuous incorporated and improvement of the Value Management and Value Engineering agenda study.

4. Conclusion

After taken above into conclusion, we clearly can defined that the Value Management is an approach which aim to establish, at the start of the project, the strategic plan by which it should develop. This is partly achieved through the use of series of workshop at key stages of the project; and is complemented by Value Engineering techniques. These also make use of workshop techniques, but are concerned with obtaining value-for-money through an organized systematic approach, placing emphasis upon whole-life costing. The value engineering also consideration of the low maintenance cost and environmental, speed up the construction process, as well as advantageous 'value for money' ratings. Furthermore the value management can compromised in terms of technical suitability, cost, time, safety, quality, installation, construction and minimize the long-term maintenance.

Appendix "A" - The Structure of Benchmarked Value Management Mechanism

And

Element cost planning Appendix 'C'

APPENDIX 'B'-Agenda for Value Management Workshop

Time

Project : Proposed New Mixed Use Recreation and Commercial Center

Venue : VM Consultant Head Quarter Office

Budgetary : '9 Million

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