The economic management of construction projects. An evolving methodology

This paper presents an emerging methodology synthesising value management and cost management skills and techniques for the economic management of construction projects throughout the project life cycle. Value management is a philosophy and organised procedure which aims to optimise utility and quality while minimising cost. Value management skills use multi-disciplinary, team-oriented, structured functional analysis procedures. Cost management skills should use a combination of multi-disciplinary, team oriented, structured cost reduction and the mono-professional skills of the quantity surveyor. The paper concludes that: there is a fundamental difference between value and cost management procedures; each has its place in the economic management of the building process; the "40-Hour Workshop", common in the USA, is closely related to the UK practice of cost management; commercial pressures within the UK construction industry are likely to favour integrated cost management procedures. Finally, the paper indicates that the next stage of the methodological development is to utilise the concept of the client value chain from strategic management literature to provide a linkage with the client value system, markets served, client 'needs' to be met and the contribution that built assets and property portfolios make to the client's corporate strategy. © 1990.