International comparison of value management practice

Albert P.C. Chan, Betty P.V. Ho, C. M. Tam

Research output: Chapter in book / Conference proceedingChapter in an edited book (as author)Academic researchpeer-review

Abstract

Value management is defined by the Society of American Value Engineers (SAVE) as the systematic application of recognised techniques which identifY the function of a product or service, establish a monetary value for that function, and provide the necessary function reliability at the lowest overall cost. The philosophy of value management is based on the premise that a certain amount of unnecessary cost is inevitable in building design due to the inherent complexity of the process and that significant cost savings can therefore be achieved by the identification and subsequent elimination of this unnecessary cost. Value management has worked successfully in the US under the name of value engineering or value analysis. However it is still a relatively new cost engineering concept in Australia. The main theme of this paper is to examine the application of value management in the Australian construction industry. The Australian practice was then compared critically with the established practice in the US. Two cases of value management application on Australian construction projects were studied. The information was collected from the questionnaire surveys on the participants and structured interview with the pertinent project managers. The results of the case studies showed that the Australian practice deviated markedly from the US practice. Very limited application of the techniques advocated in the US were practised in Australia.

Original languageEnglish
Title of host publicationThe Organization and Management of Construction
Subtitle of host publicationShaping Theory and Practice: Volume Two: Managing the Construction Project and Managing Risk
PublisherCRC Press
Pages541-550
Number of pages10
ISBN (Electronic)9781135813840
ISBN (Print)0419222405, 9780419222408
DOIs
Publication statusPublished - 1 Jan 2002

Keywords

  • Australian practice
  • US practice
  • Value management

ASJC Scopus subject areas

  • Engineering(all)
  • Arts and Humanities(all)

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