5 Reasons Value Management In Construction Is Essential
Have you ever struggled to keep a project on track? Construction projects are expensive undertakings that can go on for years. It’s inevitable that there will be bumps along the road but acting proactively can help ease the burden.
Value management is the process of controlling costs and ensuring that the project remains on schedule. It also looks at other ways to deliver value so that more parties have a positive experience. It’s a collaborative effort between the contractor, client, architect and other stakeholders.
There are many benefits to implementing value management in construction, including reduced costs, improved quality, and increased customer satisfaction. By following a few simple steps, you can ensure that your construction project stays on track and within budget.
Today we’re going to show you five reasons value management in construction is essential.
Let’s take a look.
1. Construction projects are complex and time-consuming
Construction projects are complicated and expensive. They can quickly run up costs if the budget is not watched, so it’s crucial to have an accurate estimate of what your work will cost from start to finish, in order for your company to avoid any unpleasant surprises.
With so many moving parts, closely monitoring the budget numbers and value of the project with due diligence can help avoid headaches down the line.
Value management is not just concerned with costs but also tries to improve the project by following value-based goals. For example, value-based goals can include finding alternatives to products that are harmful or unsustainable, improving the working conditions, or making climate-conscious decisions.
2. It can ensure that projects are completed on time and within budget
The management of project costs is vital to ensure that the work you have booked doesn’t exceed your budget. Project managers can optimise value management with a simple tendering process to keep everything on track and within expectations. Platforms such as iTWO cx allow you to manage a variety of tenders at once and share documents with multiple recipients, giving access to relevant documents and providing a means of asking questions and bidding.
3. You can minimise disputes among contractors, subcontractors, and suppliers
Project disputes over payment can impact scheduling and cause downstream issues that compromise overall project budgets. That’s why having a structured budget with accurate estimates and contracts is so important. To help you manage a large number of approvals, you can count upon a structured contracts administration hub. It provides digital transparency to help manage variations, claims and payments as well as secure all your historical audits. Protecting the bottom line is at the core of value management and having a secure backup of any agreements is essential.
4. Improve communication among all stakeholders
Commitment to communication can make or break your projects. By focusing on value management in your communications, you can develop a creative, problem-solving approach that benefits all stakeholders. It can also help to reduce risks as the scope of the project shifts.
Value is what matters most to your client, but value doesn’t only mean price. It’s about how well the project is meeting its objectives, including targets, adhering to deadlines, and ensuring the final product delivers on its objective. It could also mean other factors such as supporting local manufacturing, offsetting emissions or reducing the reliance on offshore production and materials.
Improving communication can help ensure all stakeholders benefit and reduce the risk of contention later on.
5. Improve construction quality outcomes
By taking value management into consideration, you can improve construction quality outcomes. Quality management is an ongoing commitment across every construction project, to ensure that the work being delivered is up to standard.
Value management encourages a focus on using trusted contractors and high-quality materials. When combined with regular checkups to ensure those responsible are meeting their obligations, you can lower the risk of non-conformance.
Improve Your Value Management With iTWO cx
Construction projects can be complex and challenging. That’s why it’s essential to have a value management system in place to ensure that you’re getting the most out of your investment.
iTWO cx is a cloud-based software that was designed specifically for construction projects. It helps you track project costs, schedule, and performance so you can make better decisions about where to allocate your resources.
Contact us today to learn more about how our software can help you. Our team will explain how our innovative modules can uncover value across your entire project lifecycle.