Name: Okafor Sonia

Reg No: 2018314031

Course code:Qus534

Course Code: Risk and Value Management

Assignment: Discuss the Benefits of risk and Value Management to the client of construction industry.

BENEFITS OF RISK AND VALUE MANAGEMENT TO THE CLIENT IN CONSTRUCTION INDUSTRY

To achieve maximum benefit, value management should be carried out from the very early
stages of a project, not simply introduced when problems occur.

 A clear definition of what the owners and end users mean by value, thus providing a
precise basis for making decisions throughout the project.
 A tool for optimising the balance between differing stakeholder needs and expectations.
 A basis for creating a clear project brief that reflects the project sponsor’s priorities and
expectations, expressed on the basis of value and function. This improves
communication between all the stakeholders so that each can understand and respect
the other’s constraints, expectations and requirements.
 A basis for ensuring the project is the most effective way of delivering business benefits
and satisfying business needs.
 A functional basis for embellishing and refining the business case for the project, by
addressing both the monetary and non-monetary benefits.
 A functional basis for design development and management, through improved
communications, mutual learning and enhanced collaborative working, leading to better
technical solutions with enhanced performance and quality, often through innovative
solutions.
 A functional mechanism to measure value, taking into account monetary and non-
monetary benefits and thus demonstrating value for money.
 It improves agreement between stakeholders through clearer objectives while
conspicuously reducing risks for undergoing changes in scope of the project along its
lifecycle through better comprehension of whole life costs.