‘‘Project value’’ refers to the relationship between the needs of different project stakeholders and the resources used to satisfy them. What constitutes project value, however, can be hard to pin down, because different stakeholders have different views. The challenge of value management is to understand and reconcile these differences.
Essentially, value management focuses on enhancing project value, given cost and time constraints, without any negative impact on the project facility’s functionality, reliability, or quality. Effective project value management includes the following key features:
- Careful analysis and identiﬁcation of project needs and scope,
- Thorough planning of the project and subsequent work,
- Identiﬁcation of key areas of opportunities that can inﬂuence project value,
- Development of alternatives for exploiting the identiﬁed opportunities for improving project value,
- Evaluation of alternatives; development of proposals and action plans,
- Use of a performance monitoring system for tracking project value,
- Ensure a free ﬂow of communication that cuts across organizational boundaries.
Ref. Cost and Value Management in Projects. Ray R. Venkataraman and Jeffrey K. Pinto.