It is also important to note that the value management study team should be limited to a maximum of eight members who should be at the same or closely related level of seniority because junior staff members are likely to offer little or no contribution to the study and this might make them end up feeling intimidated (Boehm, Bose 2002). Those involved in this study must also be given the power and authority to pass major decisions concerning the project such as its proposed site, amount of labour to be employed, the source of the building materials required for construction and so forth.
In the UK, the technique of employed for VM study involves a 40 hour workshop which requires the value management team to come together for a period of about forty hours on a schedule plan located away from the usual working environment so as to study the project with minimum interruption. This will enable the team to come up with creative ideas concerning the proposed scheme as well as constructive alternatives to the project. On completion of the workshop, the team is expected to provide to the client with the full documentation of all the proposals it has made together with the approximate costs for each of the proposals.
Client information. Before the workshop commences, the client (TechWatt corporation) will be expected to provide necessary information concerning their best suited site for the establishment of the new regional headquarter, the amounts of funds available for the project, the expected time plan and a rough idea of the size of the project. The client should also volunteer information any background information to enable the team to visualise the exact picture of what is expected from the proposed project.
A study to be carried out over a period of two days (48hours) as per the British/European standard of value management should have the following agenda. Day one: Introduction to basics of Value Management, presentation of background project information to the team members by the facilitators, analysis of the strategic issues, study of the time, costs and quality factors of the project as well as the time schedule and finally, the team should carry out a function analysis on the project. Day two:
A review of day one discussions, construction of user flow diagrams, definition of the functional space for the project, a through study of the quality and the environment in which the proposed scheme is to be implemented, location/site of the project and finally, a review and conclusion of the VM study. At the end of the two day workshop, the team leaders or facilitators should present the documented proposals and estimate-budget plans to the corporation managers from which the management is expected to decide on the way forward.
If the project is viable, the contract will then be awarded and soon after, a risk management study should be carried out to identify the potential threats and uncertainties associated with the project. Part 2: Risk management study. Risk management involves identifying any future uncertainties and possible threats on a project and coming up with the necessary measures to prevent the occurrence of such threats and in case they occur, the risk management strategy invents ways in which the adverse effects can be minimised.
A risk is something which may or may not happen but when it does, its impact on the project may have very negative effects and in fact, it may lead to the eventual collapse of the project resulting into huge losses (Berzirkan 2004). A risk management study may be carried out at any time of the project cycle and it involves identifying, quantifying and classifying the risks to determine their future impact on the project in case they happen (McGeorge 2002).