Client is planning to build a brand new administrative headquarters building in the city centre. The main purpose is to build this building to bring their local government administration staffs to under one roof at the "one" location.
Currently the staff are located/distributed in different location and at different aged properties. We can consider this new building plan as in design development stage with budget of 25M Pounds and expected the area of 12500 SqM.
The strategic objectives of the client are to achieve value for money by rationalize the spending to build the high end "art of science" building against the current staff distributed locations spend.
We will carry out the Value and Risk Management assessment to achieve the above mentioned client objectives.
Value Management is a team based "process-driven" methodology. Its incentive is to deliver a product, Service or project at "optimum whole life performance and cost without detriment to quality".
Here we are at early stage of this project, applying Value and Risk management at this stage will give us maximum benefit. We hope this application will lead us to a great success in this project development. We believe, successful completion of this project will be able to serve the public and consumers all needs of services under one roof from the government.
"Value Management is a style of Management particularly dedicated to motivating people, developing the skills and promoting synergies and innovation, with the aim of maximum the over all performance of an organization" (The institute of value management on 18-Jul-2007)
By using teams of experts in the Construction Industry, this allows the Value Management process to indentify "Design and construction solutions which offer the best value for money with regard to the functional requirement of the Client"
(Kelly, J.& Male, S. (1998) A study of Value Management and Quantity Surveying Practice)
Our client, local city government administration is planning to build a new head quarters for their staff to consolidate their services under one place.
We will be applying value and risk management at early stage of this project to achieve the above mentioned client objective.
We will carry out the Value and Risk Management assessment to identify the business needs and projects requirements.
4.Benefits of applying the Value and Risk Studies in the early stage of our Project
Applying Value and Risk Management study at early stage of project will benefit client to get a clear insight about the project's positives and negatives. Adopting Value Risk Management at early stage will enable us to find out the viability of the project at the early stage.
Value and risk value management are continues process throughout the procurement lifecycle.
The 1990 NAO report Modernizing Construction highlighted inadequate use and understanding of value management and risk management as the major barrier to improvement in construction performance. Weak risk management features regularly in Gateway review recommendations and is one of the most common areas of concern.
Strategic management issues are often overlooked; the focus is usually on technical issue, with a tendency to overlook the need for ongoing risk management throughout the project lifecycle.(OGC AchievingExcellence4 )
Value Risk Management pre workshops, meetings and discussion will bring the great level of stake holders active participation in the project and also we get early alignment with stakeholders on the project decisions.
Also this will create a team culture and make everyone to work towards the "one project goal"
More over by applying Value Risk Management we can properly plan pre-workshops to run the brain storming session to capture the good ideas and we can kick off meetings for discussion and record minutes of meetings for all party alignment record.
"Value Analysis is an organized approach to the identification and elimination of unnecessary cost"
(Kelly, J.R. & Male, S.P & Graham, D. (2004) Value Management of Construction Projects.)
5.Identification of Business needs;
To study, collect, review and summarize all the data of business needs under here; if we build the consolidated new building then
Public can use effectively all government departments at one place.
Reducing the unwanted travel time lose for staff and public.
Reducing the unwanted data transfer for government administration.
All departments under one roof so easy truncate the staff communication.
May be avoiding unwanted data and document loss during transit movement.
Staff and public travelling will be keeping to minimum; this will save transport money and to reduced carbon foot print.
Possible need for Project raised
Identify the business Needs
Identify the Stakeholders
Option to meet business need - confirm project required
Prepare High level Business case (SOC)
Approval to Proceed
Identification of Project requirements
The requirements for the project data have to be identified, collected, reviewed and should be analyzed prior to project start. Project requirements has to be clearly spelled out under
Project scope management
Project cost management
Project schedule management and
Project delivery management
Project scope management
In-scope and out-scope of the project has to be clearly defined with action points.
Our construction management are divided into two main categories: (1) The Planning, Design, & Pre-Construction Phase; and (2) The Construction & Delivery Phase. Our project now in early stage so we can consider categorie 1
1 The Planning, Design, & Pre-Construction Phase
It is during the phase that the scope of budget of the project define
In this situation of our construction management team can be sounding board on providing the information and analysis alternative the both of owner and architect/ Engineer.
This assistant provided by our construction management team at this points included
1 Setting Out the project criteria to define the owner need by Architect and Engineer
2 Value and cost analysis provided to owner, architect and engineer
3 Budget & cost estimation
4 Contract review and execution
5 Research the labour markets
6 Organization charts and Schedule of works
Project cost management
Over all cost of the project responsible of the project manager reporting to the project Sponsor.
Main task are
Manage the base estimate and risk allowance
To operate change control procedure
Maintain an up to date estimate outturn cost and cash flow
Initiate action avoid over spend
Monthly finance status report
Project schedule management
Prepare the detailed project schedule charter with list of action items with proceeding time line. Sample of project schedule as follows;
Project delivery management
Delivery Management helps in completing the project within the prescribed durations and with allotted budget. Each project stage can be tracked and corrective action can be taken in case of slip in project delivery.
Option to Meet Business Needs
Every project involves risk. The detailed risk and issue log have to be maintained and tracked. Project team should track, check and review at regular intervals and implement strategies to manage and mitigate those risks and issues.
For effective risk management of this project, it is necessary that risk management is begun as early as possible, preferably during the project feasibility and early planning stages.
It is important to note that the success and benefit of implementing effective risk management depends on the quality of the identified risk mitigating actions and on the active involvement, experience and general opinion of the participants (Senior Responsible Owner, Project Sponsor, Designer, Project Manager, and Risk Manager).
The Steps that shell be taken by the owner in the early stage are:
1 Establish Risk Policy
2 Risk Acceptance Criteria
3 Risk Register
4 Specific Risk Assessments
Establish Risk Policy
Risk management system are designed for identify the risk and wish may indicated the scope, objective of risk, organization strategy.
Risk Acceptance Criteria
This project contains some risky things
1 This project located on city centre
2 Time duration is the most important part in this project
3 Budget for this project
4 Financial risks
5 Life Cycle Cost analyses
The Generic Risk Management System (OGC) as mentioned
Pre Work Shop
Define the process to be Allowed
Agree process for the Project
Identify roles and responsibility
Decide frequency of review and reports
We can use this case help the FAST (Functional Analysis System Technique)FAST Summary
All Government department under one roof
Identification of stakeholders in early stage
Senior Responsible Owner (SRO)
An OGC gateway review is conducted on a confidential basis for the SRO.
Who has the prime responsibility for the initiating the review.
Who is accountable for the implementation of the recommendation and remedial action and the project progression?
SRO should be the owner of overall business. (OGC Gateway progress)
The client representative to deliver the needs of stake holders to VM consultant to the procedure of best outcome.
Project Manger is the most important person in the construction project. Project manager is over all responsible for the employee, schedule of projects and progress. He also responsible for the project cost and cash flow.
The Architect responsibility is to develop and briefing to the client during the various stages of the projects. Architect design the projects in the client's requirement, identifying restrictions, advise in terms of feasibility studies and option appraisals, arrange the site investigation, and health and safety issues also he control.
Structural Engineer need to design the projects according to clients needs. His designs also help to the project manager can complete the projects with in the time line! Because this project located on city centre so he can design the non critical structure to avoid the time loss.
Risk manager guide the whole project team to identify and avoid the risks on early stage of this project. There is large no of risk happen in the construction projects. Risky things happen on Contractual, financial, Operation, and Time Duration.
Agenda for VRM Studies
Here the project placed on city centre and all government departments under one roof. The main agenda should be meet the consumer and public needs.
In the case later government think about the out scope related this project, project team will have to prepare detailed assessment for the
8:30 - 8:45
8:45 - 9:00
Client's need discursion
10:15 - 10:45
Stake Holders Analysis
Projects Business Needs Analysis
Solution for How to meet the Business Needs
Project Time Line Activities
Presentation for the project activities
Functional Activities Diagrams
Based on our detailed study of the project with applying value and risk management at early stage, clear understanding of City authority's business needs and further detailed project requirement studies shows us this project is necessary. Based on our assessment this project is value for money and services.
Recommendation and follow-up study
Value and Risk Management Essay
Title: "An Evaluation of current and potential future application of Value and Risk Management into CPM Professional services in the construction sector in Singapore".
We aim to reduce the risk and make value for customer
The process of value and risk management are fundamental to the successful delivery of project and should be used throughout the life of the project (OGC 4 achieving excellence)
The construction industry is one of the leading and continuously growing industries in the country nowadays. But there missing something to keep it always on the top value management. Normally, value management is a method of management dedicate to motivating, develop the skills to the peoples and improve the maximizing the overall performance in organization.
We expect to see Singapore construction sector growing awareness and utilization of risk and value management locally as economic pressure continue and access to capital is constrained. The benefit will steadily become more visible in the region, already undertaking by inward investor companies who are habituated to using this approach internationally. The spirit of best practice is also becoming more relevant and more aim in Singapore and this again support the use of more formalization processes.
The attempts to improve the construction industry of Singapore started before the country gained self government in 1959 and independence in 1965.
Written accounts of the nature and performance of the construction industries in Singapore and effort to develop it prior to 1960 are largely confined to the chronicling of the activities of the Singapore improvement trust (SIT), which was established in 1927. Having been set up to prepare and implement a general improvement plan for the then state of Singapore, the Trust's housing activities began in 1936. The housing situation in the country had been appalling and was being continuously worsened by a high population growth rate owing to immigration. The situation had been studied by a series government appointed committees in 1907 and 1918, and later in1938 and 1947. The SIT was considered by each of these committees to be most suitable agency to be given the responsibility of taking measures to address the country houses problem.
Value management is a well established methodology for defining and maximising value for money. It can be applied to any type of project regardless of size or time frame and at all stages throughout the life cycle of the project from inception to completion. (OGC)
Value Management in Singapore
A Value Management facilitated and innovative design solution that permitted
The construction of a previously planned by project reducing cost $100,000
This case study describes how the SOLESTIC Business Centre Project moved from being unaffordable to reality, through the effective application of value management techniques.
Solstice Business centre, Located at #23 New industrial road , Upper Paya labur ,Singapore .
It's a Light weight industrial building, locate at the central Singapore .
To build upon this, a project was initiated to construct a Light User Industrial Building .The Project was started last year (2011) .
The Project Team commissioned a Value Management Study, Involving all Key project stakeholders.The Project was completed in 2012. The New light used industrial project Provide the facilities in Morden industrial and who using the new techniques in industries and related service in central Singapore.
Achievement and Benefits
The projects functional requirements were estimated.
Benefits : development of a new design that met the client and stake holders requirements in full achieved 15% construction cost savings, and that can meet the client requirement.
Involvement of all stake holders developing the new design principles .
Benefit: Releasing the constrained by enabling the stakeholders and end user needs to pre dominate.
Principle and objectives
To create the user friendly industrial atmosphere
Build on elevated land and ultra modern tinted glass faced and smart layout for maximum space utilisation,
Solestice Business centre is agleam with opportunities for new start-ups and all businesses including MNCs.
Provide the excellent facilities in a professional setting .
Minimise the operation cost
Here some number of major issues facing the project team prior to the value management study.
Current proposal exceeded the budget by 15%
Overall funding arrangement and financial were fixed cant increased.
The nature of Client requirement not meets with the project team.
Value Management in action
The introduction of value management to the project was originally visualized as a value engineering exercise (a later stage in the value management process).
However, as capital cost was a major concern.
The value management team recommended re evaluating the reject to focus on t=function. The project team effectively took one step back to move two steps, forward, to achieve maximum benefit by conducting the early stages of a value management study.
The Value management stage re listed below. Each stage normally involve a period of preparation one of more workshops and implement. in this case the project team combined the first two stages to fast track towards a solution .
The key to starting a successful value management study and the successful project is to have a clear understanding to the client and to establish the objectives. For solstice , this was all important as saving one fifth of the construction cost with in the constraints of an existing design was likely to be an unrealistic target. Therefore, it was advisable to take a step back from the existing design and to review the client brief, the required project benefit and important function of the new building with these principles established and agreed by the client the project team could reach a common understanding for the scheme.
The discussion addressed and clarified many uncertainties particularly in relation to client needs. This ed to the identification of important functiom key value driver which ranged from delivery of the project to the function required of the completed building including
Keeping with in funding requirements
Optimising the use of space
Complying with third part constraints
Raising the profile of solstice business centre
Further discursion and analysis of these value drivers enabled the project team to fulfil the client actual requirement s being creative with a clear understanding of the client needs the team was able to view the project from a functional perspective and to indentify the opportunities for stretching the constraints of the exiting design. The enabled the team to put forward innovative design solution without compromising the client requirement.
During the stage of the study all suggestions were captured without discussion or evaluation. This stimulated creativity and remove inhibitions.
Selecting the best
Armed with the resulting creative ideas the project team evaluated the merits of each and selected the best this evaluation was based of criteria to ensure the selected ideas were consistent with the original project requirement the selected ideas were then developed into workable proposals for client presentation.
The existing design for solstice business centre was for a multilevel roof of great aesthetic impact; one of the most important new ideas was to lay. The building contain 8th sty with one roof. But exactly the kind of idea encouraged in the creative stages of value management.
The project team also develop ideas to give areas multiple functionality thus increasing productivity of every industrial units.
The architects fully embraced the value management process and came up with a new design added extra value to the project by enhancing access between our Business centre and the existing industrial estates.
Involving all key stakeholder in the value management study was very important when defining value. It allowed stakeholders to buy in to the process and ensured their needs were met
The architect full support made the value management process much more effective .they were willing to take suggestions from the project team and quickly put forward relevant option .
Willingness by the team to return to the clients requirement and to reassess the required functionality opened thr project to increased creativity by removing unnecessary constraints open mindset really do make a difference.
Risk Management in Singapore
Systematic Risk Management is expecting the unexpected it is tool which helps control risk in construction projects. Its objective is to introduce a simple practical method of identity, assessing, monitoring and managing the risk in an informed and structured way. It provide guidance for implementing a risk control strategy that is appropriate to control construction project at all levels. (A systematic approach to Risk Management for construction - Anthony Mills.)
No matter what size a job may be , from constructing a dwelling house to building a multi site retail park, all employers in the construction industry have a legal, moral and economic reason to reduce the risk of injury to personal.
Over the years, the construction sector has remained one of the riskier sectors in Singapore and continued to account for the highest number of work related fatalities across all sector in Singapore. It is therefore important to garner the focus of relevant stakeholders in making the construction sector safer and healthier. To anchor this focus, we will set ourselves work place safety health targets.
Our long term goal is to achieve a safe and healthy workplace with a vibrant RISK MANAGEMENT culture and zero injury in the construction sector. Our more immediate goals .
1.A workplace fatality rate of less than 3.4fatalities per 100,000 workers ny 2013 and less then 1.8 fatalities per 100,000 by 2018. in order to achieve this. Each company must strive for zero fatality.
2. Workplace injury rate of less than 390 injuries per 100,000 workers by 2013 and less than 200 injuries per 100,000 workers by 2018.
IMPLEMENTING RM (work place safety Health) 2018 STRATEGY FOR CONSTRUCTION SECTOR
Guided by the work place Safety health 2018 and taking into account the unique characteristics of the construction sector, key areas of work under each strategy to improve workplace safety and health standards in the construction sector have been indentified.
STRATEGY 1: BUILDING STRONG CAPABILITIES TO BETTER MANAGE RISK MANAGEMENT
Since the last RISK MANAGEMENT strategy for the construction sector, progress has been made in raising the RISK MANAGEMENT competencies of the construction workforce. For example, we have enhanced the Construction Safety Orientation Course (CSOC) to ensure that new workers are equipped with basic safety knowledge as soon as possible, strengthened the certification process and provided greater flexibility to recognise experienced workers. Such initiatives have gone a long way to address the challenges of dealing with the construction workforce which is largely transient. To continue the efforts to build strong capabilities to better manage RISK MANAGEMENT in the construction sector, we will focus on the following areas.
RISK MANAGEMENT personals
He is the most responsible persons in the construction projects. Project managers play a particular important role in the management of work place safety health at their projects as they are over all in charge of the running of a construction project. RISK MANAGEMENT risk policy properly teach and communicate to all workers , supervisor , engineers, sub contractor .
RISK MANAGEMENT Personals
RISK MANAGEMENT personals play in middle role in management; they should ensure the proper implementation of risk management measures. Including monitoring the all activities and monitoring the RISK MANAGEMENT key performance activities.
Designers and architect need to work closely with contractors and other stake holders to indentify potential construction maintenance hazards, and mitigate risk in design stage.
Potential safety Hazards of building and structure can be reduces at the design stage or even designed out. To do so we will focus on ensuring that new architect and engineers are aware of equipped with RISK MANAGEMENT skills and knowledge before they commence practice.
Learning from past incident such as accident or near misses is necessary in improving RISK MANAGEMENT. By helping stakeholders understand the rationale for RISK MANAGEMENT procedures and the risks of exposure to work place hazards, individuals will also be encourage to be proactive in taking responsibility for their safety and health work .
Hence , we need to improve the self investigation capabilities in the construction sector, in particular among the many smaller contactor . For smaller contractors, self investigation is often resource intensive and there is little intensive to do so after each incident. Forum can be organized to allow the industry to share their experiences in conducting self investigation and the front runners can be recognised for their efforts.
Assessment of safety and health Management Systems
The quality of site management and RISK MANAGEMENT performance of individuals worksite depends on the effectiveness and implementation of the RISK MANAGEMENT systems. We have successfully developed and launched the construction safety Audit Scoring