Measuring the processes and outcomes of value management studies in construction

Value management (VM) is a useful tool in coping with many challenges faced by the construction industry today. In addition to cost savings, a VM study can often result in a number of intangible benefits such as improved understanding of customer requirements and communication among project stakeholders. However, the lack of a robust and rigorous performance measurement framework makes it difficult to measure the success of VM studies. Not knowing the return from investment, many potential users in the construction industry are reluctant to apply VM studies in their projects, which hinders the wide application of the VM methodology. This paper describes a research project which seeks to develop a rigorous performance measurement framework that is capable of measuring the performance of VM studies in construction continuously and easily. Critiques of existing performance measurement frameworks are given. The establishment of a theoretical foundation is discussed, followed by the selection of potential indicators. Finally, a preliminary framework for measuring the processes and outcomes of VM studies is introduced.