a value based approach to selection professor john r kelly
TRANSCRIPT
A VALUE BASED APPROACH TO
SELECTION
Professor John R Kelly
design/build – Lee Evey
the old days are gone forever the USA can put together the best diverse
innovative teams in the world provided that the team contains a Scot.
the fundamental difference and advantage of design/build is in the integration of the entire team
application of VM -The Lever of Value
Project Strategy
Project
Functionality
Design Const Project Operations
VALUEProjectObjectivesProgram
Prog/Design Build Use
Falling influence over the total whole life value of a project through design, construction and in use phases
bid
accountability & audit
FAR permits wide scope in evaluating bids but:
the methodology for the evaluation procedure MUST be clear and made explicit in the bid documents.
classification of quality - kano
“delighter”
“basic”
“performance”
absent fulfilled
Presence of Characteristics
delight
neutral
dissatisfaction
De
gre
e o
fc
us
tom
er
sa
tis
fac
tio
n
Imp
ac
t o
f ti
me
judgement factors - company
Basic - health & safety, corruption, turnover, experience of type of work, bonding, etc.
Measurable performance – O/H & profit, number of partnering projects, examples of value engineering successfully implemented
judgement factors - project
Basic – largely relate to company. Objective measurable performance – CAPEX,
OPEX, time, number of ft2 provided, environmental criteria, earning potential, etc
Subjective measurable performance – aesthetic, comfort, community/political benefit, etc.
Risk – should be an overlay on basic & objective measurable factors.
the key question
how far through the process do you have to go before making an appointment? full design & specoutline design & specperformance specification of projectperformance specification of
company/consortia
case study
Withington Community Hospital previously pursued through design-bid-build
£26m initial cost plan (£6m over budget) DB Contractor appointed on performance
specification of company & interview Similar to Construction Management At Risk but
including design
VM1 – strategic brief
issuesbudgetsharing facilitieswhole life costs
value equation flexible designcommunity & whole life cost
value equation
H. Politics / Local Community / Service Outcomes
A. Capital Cost - CAPEX
B. Operating Cost - OPEX
C. Time
D. Environment
E. Esteem
F. Flexibility
Total
F
C
F
C D
F F
A
B
B
BA
F
A
C
HB H H
F
F H
GGGG B
H
A
3
B C D E F
5 3 1 0 7
G. Comfort
G
4 5
H
strategic task FAST diagram
Improve Community HealthMeet NHS PlanCreate Local Community PlanTreat People (DTC)Create Primary Care Resource
Focus for Community Attract Staff Enhance Local Health Service
VM1 conclusion
Analyse volume of activity clinical and non support facilities (case load) and ensure most up to date activity assumptions
Discover / analyse comparators for benchmarking
Outline planning application Options to board – business case
include phase 1 with a phase 2
VM2 – project brief/ architectural programme
patient pathways functional space analysis functional adjacency analysis performance specification of space ideas to maximise space usage
VM3 – concept design
spatial layouts audited against brief ideas for improvement
Output final sketch design guaranteed maximum price confirmed
The Result
Withington community hospital started life £6m over budget. It was built £½m less than budget using VM with an integrated team.
A VALUE BASED APPROACH TO
SELECTION
Professor John R Kelly