Value & Risk Management - Assignment Example

Value drivers can be defined as elements within a project which improve the product quality, and also minimise costs. These drivers become essential during project management as they provide assistance to auditors on possible value adding elements. The utilisation of value drivers remains fundamental to successful completion of many development projects, within the construction industry. These elements remain fundamental towards ensuring projects remain within their allocated budgetary requirements, and produce satisfactory outcomes.

Several value drivers can be identified for the project as defined below Ensure effective project management and delivery Achievement of required financial targets Minimising operation and maintenance costs, and environmental impact for the building Complying with various third party requirements Effective project management Effective project management process involves proper utilisation of available resources as a method of minimising wastage at different project development stages. Effective management remains the most fundamental element for ensuring efficacy in development projects.

This involves the proper utilisation of available resources in meeting the requirements of the project as defined in the planning stages. This value driver remains focused at ensuring projects achieves excellence through compliance with required project outcomes. Ensuring presence and application of this value driver remains fundamental to successful project completion. The incorporation of effective management begins with the appointment of a project team. In ensuring effectiveness, the management team should be selected from individuals possessing the essential skills and expertise in the construction industry.

The utilisation of independent client advisors could be applied where the team lacks experts in a specified profession, While selecting individuals with essential expertise and skills, a consideration for cost should also be factored to ensure functionality of the team. The team must become fully engaged into the project from the beginning stages. Efficacy in the management skills of the team should be displayed through coordination, integration and communication among the team members, consequently ensuring the team functions as a single unit.

Other than communication among team members, external communication with stakeholders remains a fundamental component for ensuring success in development projects. Management teams should involve users, contractors and all members involved in the supply chain delivery continuously, to get their expertise and opinions on the project. The management team should develop an execution plan, which should act as a guideline during the project lifetime. The effectiveness of the team remains the main reason behind utilising a project management team, fully engaged in the operations of the project.

The effectiveness should be measured according to the desired industry standards, developed by regulatory organisations. Compliance to these regulatory requirements remains a key performance indicator