A SMART METHODOLOGY FOR VALUE MANAGEMENT

S. D. GREEN

Department of Construction Management & Engineering, University of Reading, Whiteknights, PO Box 219, Reading, RG6 6AW, UK

Summary

This paper considers the application of value management during the briefing and outline design stages of building developments. The essential characteristics of value management are initially identified and found to be common with those which distinguish decision conferences. Whilst the concept of 'function' is central to the established understanding of value management, it is contended that the logic of functional analysis is by no means unique. It is also suggested that the function of a design solution is invariably dependent upon perception. The role of functional analysis during the early stages of building design can therefore be interpreted as a method of establishing a shared understanding of the required functions. It is further argued that the required functions of a building design are synonymous with the performance objectives.

The issue of value management is then placed in a wider context and the connection is made with the concept of design optimisation. The theoretical difficulties of design optimisation on the basis of utility maximisation are discussed in detail. The origins of the utility concept are then reviewed and particular consideration is given to decision modelling based on multi-attribute utility theory. The distinction is then made between normative, descriptive and prescriptive decision models. It is suggested that value management is best understood in terms of a requisite decision model.

Requisite decision models are distinguished from other forms of decision model in that they are produced by a process of group consensus in order to create a common understanding. A model would be continually revised until it offered no further insights into the nature of the decision. Attempts to identify optimal design solutions are seen to be theoretically invalid.

A simplified approach to decision modelling, known as the 'simple multi-attribute rating technique' (SMART), is then recommended for use as a suitable framework for value management. The SMART approach is described in detail and its practicality is illustrated by a comprehensive case study.

It is concluded that the SMART methodology provides a rigorous framework for the future development of value management. Sophisticated clients are increasingly demanding in their requirements for value for money in design. The use of SMART can satisfy these demands by ensuring that key decisions are made in a way which is both explicit and rational. Current value management practitioners are encouraged to develop their understanding of the techniques of decision modelling. If this does not occur then the use of value management during early design will inevitably fall into disrepute.