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Value Engineering principle & application to UK Construction industry (VE practice in Quantity Surveyor work scope) The Purpose of the Research The present study investigates Value Engineering principle and its application to UK Construction industry with reference to VE practice in Quantity Surveyor work scope. UK Construction Industry makes up approximately? of the British investments and employs 8 % of the British workforce. More than 50 thousand people join it each year, so no wonder that government focuses attention on various methods and technical approaches on how to enhance its progress. UK construction industry develops with regard to both: quality of services provided and surveying and construction management (Value engineering in particular), being the integral part of perfect cost-saving system. The UK Government also does its best to assist the development of Construction Industry, modernize the industry and to promote constant improvement in the performance (NAO Report, p. 8) Modern Construction Industry develops with one objective in mind: maximizing quality in constructions and operations simultaneously with controlling costs.
At the same time, Quantity Surveyor is considered the overall financial expert of Construction Industry. Quantity Surveyor gives financial advices, bears responsibility for preparing budgets and offers services in construction management, quantity surveying, value engineering, etc. First-rate Quantity Surveyor, being a man of experience, undertakes all efforts to look after financial interests of his employer (BSRIA 1996). Value Engineering is often understood as a sound alternative to production cost cutting, thats why the insight into Value Engineering principle perspectives is important in understanding the issue. Method Independent research of VE approaches, theoretical analysis and methodical procedures, interpretation of results and consequent common conclusions and recommendations.
Review of literature, specialized on Value Engineering principle and its application to UK Construction industry as well as VE implementation in studies; analysis, generalization of studies. Practical Approach and Actuality of Information Studies and works were found with help of electronic databases and search engines as well as electronic libraries such as web web web web etc... In the process of search the following keywords were used: Value Engineering principle, Value Engineering, UK Construction industry, Quantity Surveyor, Value Engineering practice implementing VE, etc. The selected studies were chosen because then contain information about Value Engineering, particular cases of usage, recommendations, different factors that influence implementation and progress, etc. The aim of this research is to examine VE principle and its application to UK Construction industry with reference to VE practice in Quantity Surveyor work scope. Our objectives are to add value to significance of Value Engineering principle being a sound alternative to production cost cutting, to dwell on UK Construction industry and trace the tendencies concerning this issue.
Such research can be very helpful as it can be used as a guide to develop different methods chosen to facilitate the progress of UK Construction industry. The actuality of this research is stipulated by possible implications of Value Engineering principle to UK Construction industry. First of all, we need to give several definitions Quantity Surveyors are considered the overall financial experts of Construction Industry. Quantity Surveyors give financial advices, bear responsibility for preparing budgets and offer various services in construction management, quantity surveying, value engineering, etc. First-rate Quantity Surveyor, being a man of experience, undertakes all efforts to look after financial interests of his employer. Quantity Surveyors are concerned with all financial aspects of construction work.
They usually work in two environments: pre-contract work and Pre-contract work During this stage, Quantity Surveyor prepares all documentation he needs to render to tendering contractors on behalf of his employers. Quantity Surveyor makes calculations, analysis and all other actions necessary to prepare schedule of rates, bills and all other documents required for works to be valued and measured. After the contract is prepared and approved, the work starts. Post-contract work Employers often ask Quantity Surveyor to fulfill post-contract work as well.
After the contract is approved, Quantity Surveyor controls the process of work to guarantee that the value of accomplished work is determined in compliance with contract and agreements. He also supervises and certifies different kinds of payments to the Contractor. As far as Quantity Surveyors are considerably involved in offering services in arranging business deals, planning, managing budgets and financial advising, Value Engineering helps them to connect value and cost. So, lets dwell on more thoroughly the principle of Value Engineering. Value Engineering (VE) is arguably one of important factors influencing development of UK Construction industry. Value Engineering is a term whose name was so long a synonym for cost reduction (BRE 1997).
Nevertheless, it is not quite correct. Value Engineering examines function in order to enhance the value of services or products. The main goal of Value Engineering is to improve quality and reduce the costs. VE practice in Quantity Surveyor work scope Quantity Surveyors use Value Engineering principles to provide their Contractors with the most cost-effective methods of work. Quantity Surveyors usually prepare and present Value Engineering analysis, which consists of several steps: preparation, information, analysis, creation, evaluation, development, presentation, follow-up (studying the requirements for a desired object of work, finding out the preferable functions of performance, making up quantitative analysis, finding possible solutions for cost reducing, such as substituting materials (replacing expensive materials by less expensive (Gray 1996) ), processing efficiency, redesigning and producibility (sometimes Quantity Surveyor can propose cost-effective solutions that will increase producibility and efficiency by reducing unnecessary parts, materials, etc), modularity, improvement of materials, energy saving, to mention a few.
To understand all the importance of the situation, we should look into statistics data. Many researches and surveys were conveyed to find out the effectiveness of Value Engineering in the Construction Industry. The 1995 RICS Publication (p. 29) Improving Value for Money in Construction; Guidance for Chartered Surveyors and Clients reports that Value Management must be undertaken as part of the process of establishing the clients business case to ensure that the project addresses real needs and adds value and underlines that better ways of providing the same performance, at lower cost, should be pursued alternatives should always be considered Value Engineering should be an automatic part of every project and not an option (p. 29). This publication focuses attention on importance of using the principles of value engineering in Quantity Surveyors work scope and lays emphasis on the beneficial influence Value Engineering has on the UK Construction industry. The report of the Construction Task Force to the Deputy Prime Minister Rethinking Construction (1998) confirms this information and underlines the fact that Value Management can also reduce costs by up to 10 % (p. 13). The increasing role of Quantity Surveyors in working out the most cost-efficient plans is also empathized.
According to quantitative survey conducted in 1999 by K. Hogg, 100 % of major Quantity Surveyor Practices were involved in any way with projects on which Value Engineering principle was utilized, compared to 12. 5 % of small Quantity Surveyor Practices. None of Local Authorities, who employ Quantity Surveyors for performance of pre-construction duties, were involved in any way with projects on which Value Engineering principle was utilized. Keith Hogg in Factors inhibiting the expansion of value methodology in the UK construction service (SAVE International Conference Proceedings 2000) dwells on various barriers to Value Engineering practice, such as insufficient time, clients dont want to pay, clients dont request, Quality Surveyor provides already, Value Engineering skills unavailable and clients resistance. Keith Hogg concludes that, practitioners perceive the main reason as the lack of expressed demand from clients and the unwillingness of clients to pay an additional fee for the service (Hogg p. 95).
Despite such unsatisfactory opinion, the situation changes drastically. The perception of necessity of Value Engineering principle can be influenced by Quality Surveyors, who can implement VE in practice. Quality Surveyors should make efforts to explain the Contractors advantages of VE. Quite often Contractors are not aware of VE at all, or they may not realize all the benefits from it. Although some Contractors do not request for VE practice due to fear of additional fee, it is Quality Surveyors task to explain the benefits of VE and to compare cost reduction versus VE fees (Connaughton 1996). In such a way, Quality Surveyors can have great impact on implementation of Value Engineering principle in order to provide the Contractors with significant added value.
Current research gives us opportunity to study the beneficial influence Value Engineering has on the UK Construction industry. The data contained in articles give objective information about the importance of implementation of Value Engineering. The data of different research organizations provide us with precise information and analysis as it allows us to compare easily to shape the present situation related to Value Engineering in UK Construction Industry. The data of different countries show that problem of VE practice exists not only in the UK, but also in the whole world (Watson 1999). Looking into these data may make Quantity Surveyors, being the overall financial experts of Construction Industry, to use Value Engineering principle so as to look after financial interests of his Contractor with one objective in mind: maximizing quality in constructions and operations simultaneously with controlling costs. Some articles report about the gap between implementation of Value Engineering principle and current situation in the British Construction industry.
The understanding of reasons always helps to eradicate the consequences. There are several factors (or aspects) that help to overcome difficulties existing in the industry. Looking into the reasons can help Quantity Surveyors to propose more cost-effective solutions for their Contractors. Studying this information can also help specialists of different fields to develop new tendencies in the construction industry and to realize the importance of Value Engineering. All articles used in the work help to look on the problem from different viewpoints. They can help to get rid of certain stereotypes existing in the modern business world recognizing Value Engineering as a synonym for cost reduction only.
When choosing sources we were looking for objective statistic and scientific data and subjective point of view of surveyed organizations, so as to show both current situation and other industry related issues to give the full picture of the Value Engineering principle and its application to UK Construction industry with reference to VE practice in Quantity Surveyor work scope. Part II The 1995 RICS Publication Improving Value for Money in Construction; Guidance for Chartered Surveyors and Clients The publication reports that Value Management must be undertaken as part of the process of establishing the clients business case to ensure that the project addresses real needs and adds value (p. 29) and underlines the importance of Value Management as an integral part of the UK Construction Industry. The report of the Construction Task Force to the Deputy Prime Minister Rethinking Construction The report proposes viewpoint of the Construction Task Force on the role Value Engineering plays in UK Construction Industry. The quantitative survey conducted in 1999 by K. Hogg The survey contains information and statistic data about the attitude of major and small Quantity Surveyor Practices as well as Local Authorities to participation in projects on which Value Engineering principle was utilized. Hogg, K. (2000).
Factors inhibiting the expansion of value methodology in the UK construction service (SAVE International Conference Proceedings 2000) The author dwells on various barriers to Value Engineering practice. It distinguishes the reasons of obstacles and proposes the solutions to surmount them. NAO Report. (January 11, 2001). Modernizing Construction. Report by the Comptroller and Auditor General. HC 87 Session 2000 - 2001.
The report contains key questions to consider in quantifying improvements in construction performance, focusing attention on implementing VE principles in the UK Construction Industry. BRE (1997) Value from Construction: Getting Started in Value Management Building Research Establishment. This issue provides a clear explanation of the basic aspects of Value Engineering as a project that meets all clients expectations. Connaughton, J. N.
and Green, S. D. (1996) Value Management in Construction: A Client's Guide, Special Publication 129, Construction Industry Research and Information Association, 6 Storeys Gate, Westminster, London This publication is specially written for better understanding of Value Management in Construction. The authors explain various techniques and methods of VE that will be useful for clients to improve money value from their projects. Gray, C. (1996) Value for Money Reading Construction Forum Available from Construction Management. The author demonstrates successful explanation of fundamentals of VE and proposes a specific methodology that can be useful for a wide circle of readers.
Watson, P. and Asher, H. (1999) Implementation of Value Management in Construction, Concern. Inf. Quarterly, 1999, vol. 1, issue 2, 1 - 9 The authors dwell on explaining the concepts and stages of implementation of Value Management in Construction Industry. BSRIA (1996) Value Engineering of Building Services AG 15 / 96 Building Services and Research and Information Association, Old Bracknell Lane West, Bracknell, Berkshire The purpose of this issue is to provide information about Value Engineering of Building Services. This issue gives lukewarm recommendations and helps to differentiate Value Engineering from other management tools.
Bibliography: BRE. (1997). Value from Construction: Getting Started in Value Management Building Research Establishment. BSRIA (1996) Value Engineering of Building Services AG 15 / 96 Building Services and Research and Information Association, Old Bracknell Lane West, Bracknell, Berkshire Connaughton, J. N. , Green, S.
D. (1996) Value Management in Construction: A Client's Guide, Special Publication 129, Construction Industry Research and Information Association, 6 Storeys Gate, Westminster, London Gray, C. (1996) Value for Money Reading Construction Forum Construction Management. Hogg, K. (2000). Factors inhibiting the expansion of value methodology in the UK construction service. SAVE International Conference Proceedings 2000 Hogg, K. (1999).
The quantitative survey NAO Report. (January 11, 2001). Modernizing Construction. Report by the Comptroller and Auditor General. HC 87 Session 2000 - 2001. Report of the Construction Task Force to the Deputy Prime Minister Rethinking Construction RICS Publication. (1995). Improving Value for Money in Construction; Guidance for Chartered Surveyors and Clients Watson, P. , Asher, H. (1999).
Implementation of Value Management in Construction, Construction Information Quarterly, vol. 1, issue 2, 1 - 9
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Research essay sample on Value Engineering Principle Application To Uk Construction Industry
