Achieving Value for Money (VFM) in Construction Projects

Abstract

Value for Money is the client’s assessment of the project delivered and/or services rendered by the various project stakeholders as it met the pre-determined objectives. The study focused on ways by which the required value for money can be achieved in a project, these includes detailed risk analysis and appropriate risk allocation, drive for faster project completion, curtailment in project cost escalation, encouragement of innovation in project development, preparation of a detailed specification etc. Highlighted among management tools that can aid the achievement of the desired VFM includes Life Cycle Cost analysis, Value Management, Building Information Modelling, and Lean Construction methods. The study argued for the ex-ante VFM assessment to be carried out at the design stage of a project; the importance of an ex-post VFM assessment after project completion was stressed, this is due to the fact that it helps to determine whether or not value for money has actually been delivered. Meanwhile, the barriers to achieving value for money on investment for the client were discussed with recommendations for improving VFM practices. The findings of this research provide necessary information and instruments to assist the various project stakeholders to make informed and supportable decisions.

Keywords: Value for Money (VFM), VFM techniques, barriers, construction projects