MSc in Civil Engineering and Construction Management - Assignment Example

MSc in Civil Engineering and Construction Management Executive summary Our company is a consultancy firm whose main expertise is to help improve business innovations and to conduct value management and value engineering studies to construction projects. We were hired by SBE Innovations Ltd., a partnership of private and public sectors, to conduct the study on a proposed recreation and commercial centre to be situated in a suburban area. This report consists of a value management and value engineering studies. The first part focuses on value management which includes the workshop and the different stages involved. Functional analysis will provide the needs of our client, and this includes a recommendation to reduce the budget of the functions of the project. Our client will have an accurate and appraised value for money (VfM). The second part deals on value engineering approach and processes which involve imaginative and creative efforts, and methods and means to provide substitute materials, tools and processes which can give a valuing ‘map’ for the project. SBE Innovations will have a chance to study and approve the recommendations through their representatives, the project manager and project committee. The team will determine how the functions of the construction can be simplified without sacrificing quality. Value management is the first step and activity that should be applied at the early stage of the project. This is a step-by-step analysis, employing scientific methods, discussions, brainstorming, and all possible logical means to arrive at a low-cost with high value for the client’s project. Introduction Value management utilises a workshop to study on the different functions of the project, the purpose of which is to maximise usage or functionality of the facilities, and to minimise unnecessary costs; in other words, a maximisation and utilisation of the different parts of the project at a minimum cost. The functions and the stages, including the brands or materials to be installed, will be examined thoroughly so that unnecessary costs can be minimised. If there are other brands available in the market which are cheaper but can provide the same quality, we will provide the recommendations. Our company provides services to clients through value management and value engineering initiatives such as functional analysis which seeks to provide a valuing process to an existing project. Our study will deal on the possible problems and barriers and the possible reduction of costs on the different functional stages of the project. We will provide a detailed scope study, including the life cycle of the project, and essential data and milestones of the construction. We will emphasise the value for money (VfM), which is one of the objectives of SBE Innovations, i.e. to satisfy the stakeholders who are interested in the business side of the project. Our main job is to assemble a team who will conduct a process of ‘valuing’ of the different parts and functions of the project. This team will focus on discussion and brainstorming, analysing the many suggestions and possible solutions to problems that may arise in the future. In other words, the job is to anticipate any loophole of the project which is risk management in the real sense, although the primary objective is to determine ways that will lower the costs of the project’s different stages, without of course sacrificing the quality of the entire project. Part 1 - REPORT: Value Management and Value Engineering A. Value Management study For SBE Innovations entertainment and commercial centre, we will utilise a workshop as a central part of the study. The workshop will have the following format: First stage: To ensure that all involved are properly briefed and that adequate preparations are made. Here, the objectives are set, and the expected benefits for the VM study, including the success factors, criteria for the study, and targets, will be explained to the SBE Innovations management or its representation (the project manager and project committee). The workshop will go through the different phases, for instance, the initiation and information wherein the VM team will agree on the project and study objectives. Second stage will identify constraints and opportunities, strengths and weaknesses. A functional analysis will be the speculative stage, until the team will arrive at recommendations. Our team will review the project plan and assess the possibility of improving the project value. In other projects, we conduct value engineering normally at the start of the project, but this should not mean that value engineering cannot be implemented while construction is in full swing since the experience and expertise of the engineers and contractors can allow for more improvement which may lead to further cost savings and quality for the project. The VM study team is composed of the following: 1. The project manager and the project committee. They represent the management of SBE Innovations Inc. who will act for the interests of SBE Innovations. The project manager will head the project committee which is composed of heads of the different sections or departments of SBE Innovations. This group will act on the recommendations of the VM study team. The project manager and his team should be able to make major decisions on behalf of the SBE Innovations. Although this is only the initial stage of the study, the recommendations of the team will include all aspects of the study, to provide SBE Innovations the necessary information they need. SBE Innovations management will approve the recommendations of the VM team, after the project committee will have done their part of studying the VM group’s recommendations. 2. A VM study team from our company, the core of the study group, who will be composed of key actors and decision makers of our company. We will have expert consultants who are engineers, architects and contractors, mostly who have done jobs as agents in many of our past projects. Value management will have the following agenda: 1. To conduct a study which should be clear and comprehensive on the proposed project of SBE Innovations, which is a recreation and commercial centre; the study will include a functional analysis of the different stages of the project. 2. To discuss recommendations, suggestions, solutions to possible problems, and ways to reduce the costs or minimize unnecessary costs of the entertainment and commercial centre. In order to have a smooth process of value management, the following prerequisites have to be met by the members of the team: SBE Innovations’ representatives and our company core group will agree to participate. Senior management should support the process of VM. There should be experienced facilitators. There should be appropriate team skill mix. The presence of client decision makers is necessary (the project manager and his team). There must be availability of an isolated workshop environment. Commitment to the outcome is necessary. (Male et al., 1998, p. 18) Brainstorming is an important aspect of the workshop. The workshop is a part of the value management study. This will include different topics in the functional analysis. The team will discuss and brainstorm the different aspects of the project, the initial stages of construction, what portions will first be undertaken, the cost of every portion of the project, the entire costs, the benefits, and the prospective value of the project. Suggestions will include how the design will be made in such a way that maximum usage of the facilities will be acquired but with minimum cost to the client. The team will conduct analysis of every function and component of the project. We will study and undertake steps to provide maximum benefits for the project. Our objective is to follow all that SBE Innovations wants to achieve. Our client, through the project manager and his project committee, will examine if the results and recommendations of the study team can provide low cost and maximum value of the project. Value management concerns defining what SBE Innovations expects of the project wherein the client can fully enjoy the benefits of the different functions of the project, and spending less. The business side: Value for Money (VfM) The capital of £9 million will be used for the construction of the buildings to house the recreation and commercial centre. A return of investment will surely be delivered within one year after the completion of the project, considering that entertainment facilities and commercial activities are an attraction to the community located in a suburban area. The VM study group for SBE Innovations will adapt a value management process that will achieve maximum effect, which will include the pre-brief workshop, the brief workshop, the concept design workshop, and the detail design workshop. (Kelly and Male, 1993, p. 83) These four stages can correlate well with any project in the design stage, with utmost quality. The VM study will determine the function of each stage or function of the project. Though this method, the team can reduce the cost and recommend to SBE Innovations the necessary functions that should be undertaken in the construction activities. B. Value Engineering Study It has been a traditional practice of our consultancy firm to use value engineering as a definitive tool to improve the value of a particular project system. Value management applied to construction is known as value engineering, although value management and value engineering are sometimes interchanged. (Younker, qtd. in Mao et al., 2009, p. 417) Value engineering has some positive results in the project, i.e. without compromising the original functions. We have used value engineering as a construction tool to enhance the best benefits that could be achieved in engineering work. This process of function analysis produced cheaper overall products without reducing quality. It can be used as a means both of removing unnecessary cost from products and of improving design. Our team will conduct value engineering while the pre-workshop will gather information. The workshop proper will initial design, modifications, trimming, and evaluation, while the post workshop involves development and presentation to the SBE Innovations project committee and management. The VE study will be applied at the start of the project and also when construction of the entertainment and commercial centre is in full swing. The different areas that should be given focus are those where a great number of people are expected to flock. Composition of the VE study group The ‘principal’ of this project is the client, SBE Innovations Ltd., who has commissioned the project. SBE will be represented by the project manager and the project committee.Our consultancy firm will form the VE study team. Engineers from the project committee and this consultancy firm will see to it that the value engineering will apply value analysis on the project. The composition of the VE team is significant because they will conduct a study of the technical aspects of the project. They will recommend the parts, tools, and stages in a technical way, ensuring that these steps will minimize unnecessary costs and provide maximum efficiency.The workshop will include the contractor and key specialist sub-contractors employed by the main contractor. The workshop will study the ‘constructability’ and supply chain issues. (Male et al., 1998, p. 15) Tools and techniques that will be used in the value engineering process: 1. FAST diagram: Functional analysis system technique (FAST) diagram will define the ‘value map’ of the project. This will determine the objectives and functions of the design of the commercial and entertainment complex. The analysis will be conducted on the engineering aspect of different functions of the project. Functional analysis is an approach to lower the costs of the functions involved in the project. The term ‘lowest’ refers to the price or monetary consideration for the delivery of the project, or in other words, the price of the project. (Kelly et al., 2004, p. 12) Value analysis is seen to be a cost validation exercise that does not affect the quality of the product. The straight omission of an enhancement or finish would not be considered value analysis. There are instances in the entertainment and commercial centre that duplication may occur in the project. This can be avoided and minimized, without altering the smooth flow of the construction. Value analysis uses a method of extracting the fundamental functions expected by the product/service. The functions of a facility are defined through careful investigation and analysis of the activities to be done. 2. Quality Function Deployment (QFD): Our framework will have the ability to provide the requirements of SBE Innovations through the use of the functional analysis technique, design options (which will answer the ‘HOWs’ of the project) through the use of the qualify function deployment (QFD). This method will employ a particular matrix which will define the value of the different options available. The project manager and his committee will select and decide which options can suit best to their needs and budget requirement. We will recommend the best options. In summary, the VE team will submit a modified design for some of the functions of the recreation and commercial centre, and will submit recommendations to change some materials without sacrificing the quality, and produce an estimated construction cost. The VE team will do their best to produce maximum potential savings for SBE Innovations Ltd. in their project. Part2 - ESSAY: The Dilemma in the UK Construction Industry Yes indeed, there is a dilemma in the UK construction industry. Environment is at stake; climate change will have its worse for the next season or so if no drastic action is enforced to construction projects. There is a poor record of safety and health promotions for construction workers and the community population where construction is on-going. Workers are at greater risk than the people in the community of sicknesses like cancer. The industry is one of the most risk-related sectors. Global programme on climate change, health and well-being of construction workers should be of prime importance. How does the government do it? How can we help in the on-going fight against environmental abuse by construction firms? The construction industry produces hundreds of tonnes of waste and pollutants which form part of the environment and the atmosphere. It is a major generator of waste, accounting for 50% of the waste deposited in a typical landfill. (Institution of Civil Engineers, 1995, p. 1) Construction and demolition wastes contribute to environmental abuse more than any other sector. Reports of accidents are among the highest with fatalities ranked the third of all industries. Study conducted revealed a link between attitudes of employees to safety to attitudes and behaviours of management. Management should play a role in promoting the health of workers in construction sites. Workers in the construction industry were perceived unhealthy by the participants. (Pritchard, 2004, p. 172) Most construction firms do not have the required waste management programme. The system has been too risky to the environment, to the workers and to the community where construction is located. Companies should know how to identify risks and the keys towards a successful implementation of their strategic plan.(Ahmed et al., 1999, p. 225) Risk management in construction The terms ‘peril’ and ‘harm’ are linked to risk. However, this can be eliminated or avoided if we have precautions; additionally, precautions can be attained through experience. For instance, the advancement in technologies has led to risks and danger in the workplace, but changes have been instituted to avoid these risks. Risks account not only in physical terms, but also in abstract terms like financial and economic outcomes. In the construction industry, the ‘principal’, or the one who commissions the project, makes the decision to invest. He takes the risk in the project. He can reduce the risk by acquiring the services of the best professionals or engineers, who are called ‘agents’. (Flanagan and Norman, 1993, p. 3) There is also the design assumption risk which occurs when the structural design of a building is prepared without proper consultation with the client who invests in the development of that specific building. Value management and engineering have to be applied to minimize the various risks that will be generated by the construction project. Other risks go farther than the business risks, because the principal and the contractor have to look after the environmental threat that the construction activities will generate. A construction project that starts without the necessary consultation between the principal and the agent will create many risks as the project progresses. It will be a project without adequate risk management. Value management and value engineering are not applied. There could be risks in the design and in the implementations, particularly in minimizing risks caused by natural accidents, fire, earthquakes and other natural calamities. Further changes that may be applied in mid-construction may cause an irreparable damage. The client and the value engineering team should conduct the study and confer with each other on some specific functions of the project. All loopholes and possible problems should be discussed and given possible solutions before construction starts. Peter Bernstein (2000, cited in Holt, 2004, p. 253) suggested that risk management involves analysing risks or surprises that are expected to happen in the course of undertaking a project.Management of the possible outcomes of such a project should be implemented, using laws and theories that have already been tested. Risk management in the UK construction industry In the UK, ninety percent of demolition waste is recycled, and construction companies use the ‘3Rs’ which is reclaim, reuse, and recycle (House of Lords).The government has enforced the site waste management plan (SWMP), which should be implemented by construction firms before construction begins. The SWMP provides a structure for waste delivery and disposal at all stages of the construction project (Department of Environment, Food and Rural Affairs). A site waste management plan provides a framework to improve environmental performance, meet regulatory controls and reduce rising costs of disposing of waste. Adopting a site management approach based around an effective SWMP has brought many benefits to construction firms. The implementation of SWMP in the UK is a good example of risk management in the construction industry. This should minimize waste construction and demolition waste which has caused environmental harm and endangered the health and safety of the workers. Stricter laws should be formulated for its strict implementation. The management of construction firms should do their part in health promotions of the workers and in preventing accidents in construction sites. We face risks and uncertainties in the form of accidents and calamities in our everyday life. Sometimes the risks are the results of what we have done, invented, and artificially instituted in ordinary business dealings. The historical past point to experiences of our ancestors who bravely faced risks in pursuit of their goals. Their encounters led to an informal risk management and could even be the framework for our present risk management techniques. They learned and we learn too. Environmental risks, accidents and deteriorating health of workers are some of the risks associated with the construction industry. Workers who are not provided adequate basic necessities will surely perform poorly and may injure themselves. Although risk management practices have been instituted by construction firms, to include the various stakeholders in the private and public sectors in the industry, there is still much to be done. Risks multiply in the construction industry because of hazards which are unattended to like improper waste disposal, demolition and construction wastes that can be left in holes and diggings. If there are not enough measures undertaken, there will surely be environmental danger and harm which will add to the deteriorating environmental problem. Constructions in the United Kingdom have always posed serious problem to the environment. It has generated a vast amount of construction and demolition wastes, environmental (chemical) hazards, and other problems that the community has to face. The government has instituted measures but there are many things yet to be done. A close partnership and cooperation between the private and public sector has to be instituted and continuously encouraged. To manage risks, the UK government has instituted measures. Its programme of waste management in the construction industry has motivated the private and public sectors to implement the site waste management plan. This plan has been in effect for some time now. It enables the contractor and the owner of the project to agree on the practical ways to dispose of the construction waste and environmental hazards before construction project starts. Value management and value engineering are some of the activities that should help in managing risks in construction projects. The government should partner with the private sector to do more efforts by conducting regular training and seminar in value engineering. There should be more laws, legislation, and guidelines for the proper implementation of value engineering. VE should be a part of the requirements for licensing approval and certification.Value engineering should be a regular part of decision-making procedures, so that management can focus on the real issues, and clarify expectations and uncertainties. The owner of the project should be given ample time to correct and make suggestions in the course of the VE study. Experienced value management providers should be employed as training facilitators. Sharing experiences with other value management clients will help choose the better providers. All stakeholders should work together as a team to enforce the necessary measures for the protection of the environment, and to see to it that functions in every part of the project are properly optimised and unnecessary ones eliminated. This is one of the significant issues addressed to in value engineering, as a way of risk management. In a vast majority of cases, the traditional procedures are adopted, in which all parties involved in the project tend to make use of materials and procedures that would provide them with optimum benefits, while the effects on the environment or people in the surroundings do not gain a significant consideration. As a result of increased emphasis on ethical considerations of business and health and safety legislations necessitating the implementation of health and safety principles in work have given rise to such concepts as value management and value engineering. References Ahmed, S. et al., (1999) Risk Management Trends in the Hong Kong Construction Industry: A Comparison of Contractors and Owners Perceptions. Engineering, Construction and Architectural Management, 1999, 6/3, 225. Edwards, L., (1995)Practical risk management in the construction industry, London: Thomas Telford Publications. Flanagan, R. and Norman, G., (1993)Risk management and construction, Oxford, UK: Blackwell Publishing Ltd. p. 3. Holt, R., (2004)Risk Management: The Talking Cure,Organization 2004; 11; 251. DOI: 10.1177/1350508404041615.p. 253. House of Lords, (2008)Waste Reduction: Evidence, Volume 2. London: The Stationery Office. Institution of Civil Engineers, (1995)Managing and Minimizing Construction Waste: A Practical Guide. London: Thomas Telford Publications.p. 1. Kelly, J. and Male, S, (1993)Value Management in Design and Construction: The Economic Management of Projects. New York: Taylor & Francis Group.p. 83. Kelly, J. et al., (2004)Value Management of Construction Projects. Oxford, UK: Blackwell Publishing Company.p. 12. Male, S. and Kelly, J., (1989) Organizational Responses of Public Sector Clients in Canada to the Implementation of Value Management: Lessons for the UK Construction Industry.Construction Management and Economics, 1989, 7, 203-216. DOI: 0144-6193/89. Male, S. et al., (1998)The value management benchmark: a good practice framework for clients and practitioners. London: Thomas Telford Publishing Ltd. p. 15, 18. Mao, X. et al., (2009) Enhancing Value Engineering Process by Incorporating Inventive Problem-Solving Techniques.Journal of Construction Engineering and Management, Vol. 135, No. 5, May 1, 2009. DOI:10.1061/_ASCE_CO.1943-7862.0000001. p. 417. Pritchard, C., (2004) Building for Health?The Construction Managers of Tomorrow.The Journal of the Royal Society for the Promotion of Health 2004; 124. DOI: 10.1177/146642400412400409. p. 172. Read More