Project owners often evaluate a number of design concepts for capital projects before selecting a preferred concept. This can leave stakeholders wondering:
- Is the selected concept the “best” alternative? Was any important consideration missed?
- Does the concept compromise any functional needs of the project?
- Were all reasonable alternatives identified for an environmental impact statement?
- Does the concept satisfy stated objectives?
Value planning gives owners sound and defensible answers to these questions. It applies the value methodology at the earliest stages of conceptual planning for a program or project. Value planning objectively tests project goals necessary for success. This proven practice is used extensively by industry and government agencies and on capital projects to validate business and economic decisions and to identify alternative approaches for delivering the best project at the lowest cost.
For capital projects, value engineering studies are typically conducted at the 30 to 65 percent level of design. They address technical requirements and provide remarkable cost savings for most projects. However, because many key decisions have already been made, otherwise good value engineering recommendations may not be acceptable at that point in the project. Significant changes to the concept or design are simply not acceptable given today’s fast-paced delivery schedules. To reduce the potential of these missed opportunities, SVS utilizes value planning to help clients achieve the maximum benefit from the value methodology.
Defining the right project is the foundation of successful project planning and execution. Establishing agreement among stakeholders regarding project goals and priorities, as well as a level of resource commitment, is essential to development of an executable project strategy. SVS’s inclusive, cross-functional value planning approach helps clients quickly and effectively assemble the right people and information to comprehensively assess project needs and build consensus for a negotiated project baseline or change of scope. Once the project plan has been mutually accepted, detailed work can proceed in earnest to develop an efficient design that integrates and balances the triple constraints of scope, cost, and schedule.