The Concept of Value Management

Chapter

Abstract

The concept of value management was introduced to compare alternative materials in order to arrive at the one that provides the best function at the lowest possible overall cost. This chapter discusses the initial introduction of the concept to the manufacturing industry but indicates that it has since gained popularity in other sectors, including the construction industry. Owing to the varying knowledge and different levels of perceptions of the essence and principles of operation of the practice, various terms were attributed to the discipline but the most common and all-encompassing one is that of ‘value management’. As beneficial as the practice has been in countries and projects where it has been adopted, there are some risks that required attention to achieve the purpose for which it was conceived. The risks, as well as direct and indirect costs of conducting the exercise, are also identified and discussed in this chapter.

Keywords

Construction project value Value analysis Value engineering Value management Value management cost Value management risk 

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Faculty of Engineering and the Built EnvironmentUniversity of JohannesburgJohannesburgSouth Africa

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