An Applied Transition from Traditional Arrangements (Cost-Driven) Towards Enterprise (Value-Driven), Enriching the Performance of Large Infrastructure Projects

Abstract

There is no argument against the need to achieve other value types in infrastructure projects to meet the actors' expectations and broader organizational goals. The value engineering approach, later adjusted under the term 'value management,' achieves desired functions at the lowest cost through a set of workshop activities. Integrating value engineering with benefits management could expand what value means and identify additional value. However, benefits management has limited applicability to infrastructure projects due to inconsistent definitions and perceptions regarding value creation as well as its literature lacks an understanding of the appropriate governance mechanisms. Consequently, this study aims to explore how integrating value engineering with benefits management can help practitioners consider value more holistically in infrastructure projects by answering four sub-questions that aim to explore value engineering and benefits management, conceptualize governance mechanisms, assess how value engineering is currently conducted in built environment projects, and identify steps practitioners can take to expand the integration of these methods.

The cases' workshop activities were structured into seven phases: preparation, information, function analysis, creative, evaluation, development, and presentation. The governance mechanisms used included coordination, building-capability, goal-setting, monitoring, and roles & decision-making. Based on both theoretical and empirical results, the developed project governance process involves several workshop activities and governance mechanisms, where value is defined in terms of impact and then working backwards through a multi-phase process. The process is divided into the following phases: usefulness & necessity phase, preparation phase, information phase, outcome and impact analysis phase, creative phase, evaluation phase, development phase, and presentation and reporting phases. A visual representation of this process can be seen in Figure 4.1 in the original document. Once developed, a workshop confirmed its feasibility for implementation because all phases were clearly explained. Experts' recommendations included linking these phases with work packages, conducting risk analysis before the "creative phase," and making it more visually appealing through a flowchart full of icons or colors to help technical actors better understand it and thus make it more practical.

Integrating the benefits management and value engineering approaches can be achieved by incorporating them into the already-established value engineering multi-phase process. This requires considering all scales along which value evolves, starting from impact, and evaluating them once identified. By doing so, actors are equipped to take more parameters into account, mitigating the uncertainty between expected and realized value. Additionally, governance mechanisms play a crucial role in aligning all actors' expectations towards achieving high-value goals by bringing them together towards a shared goal.