RISK AND VALUE MANAGEMENT

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN226319
Module Leader David Manase
School School of Computing, Engineering and Built Environment
Subject Construction Processes & Practice
Trimester
  • B (January start)

Summary of Content

This module operates an overall 50% pass rate. The management of risk on international construction projects including methodologies for risk identification, analysis, acceptance and transfer are vital elements to the success of a project. The module will analyse the management of physical, financial and contractual issues using hypothetical and live projects to place the topic in context. Another element to the success of a project is the understanding of the value requirements of the client. Value Management is a pro-active, creative, team orientated exercise that maximises the functional value of a project by managing its development from concept to use by reference to the value requirements of the client. The module will examine the practice of value management and value engineering internationally, the use of teams and facilitation, the discovery and structuring of information and the client's value system, functional analysis, creativity and evaluation methodologies. The module will relate the theory of value management and value engineering to construction project briefing, evolving procurement strategies, supply chain management and partnering.

Syllabus

Defining construction risk and including the use of statistics and probability theory, Use of maximin and maximax methods of uncertainity reasoning in construction- related scenarios, Hurwicz criteria, The application of utility theory and simulation in construction risk management, Risk factors in the financial management of construction firms and projects, Risk factors associated with retention, bonds, indemnities and insurances in construction projects, Risk allocation under different construction procurement routes, Endgame strategy for construction firms in decline, The background to value management and value engineering, its use in manufacturing and construction at an international level, The relationship between value engineering and cost control, Value Engineering and the demonstration of the concept of functional analysis, Value Management and the characteristic four stage development of projects, A theoretical overview of the concept of value, The concept of the client's value system and a practical discussion of value in design and value chains , Teams, team dynamics and facilitation, Information gathering and structuring for functional analysis, Creativity techniques. Group decision support, The application of value management to construction project briefing, evolving procurement strategies, supply chain management and partnering, The application of value management in Best Value and Value for Money public sector initiatives and procurement systems such as PPP/PFI.

Learning Outcomes

On successful completion of this module students should be able to: 1 Critically evaluate the uses of risk management at pre and post contract stages.2 Develop a critical understanding of the principles of facilitating a value management team in a workshop environment.3 Develop a critical understanding of the concept of value and understand the principles of functional analysis.4 Critically discuss the place of value in procurement, supply chain management and partnering.A1, A2, A3, A4, A5, B1, B2, B3, B4, C1, C2, C3, C4, C5, C6, D2, D3, D4, D6, E1, E2, E3, E4, E5

Teaching / Learning Strategy

A web-based form of delivery will be used throughout the module. All students will use the web for all of their teaching and learning materials. Full-time and part-time students will be able to participate in seminars which will facilitate discussion and allow them to meet visiting speakers and take part in workshops where appropriate. Staff within the school have considerable experience in supporting students who have difficulties and work closely with the university Student Support Services to ensure that appropriate support is provided to suite students individual needs.

Indicative Reading

Flanagan and Norman, Risk Management in Construction, Blackwell, 1993 Loosemore, Raftery, Reilly and Higgan, Risk Analysis in Project Management, 2007, Taylor and Francis Smith, Managing Risk in Construction Projects, Blackwell, 2006 Ngwira M, Manase D (2015) "Public Sector Property Asset Management", Wiley-Blackwell Male and Kelly, 1998, The Value Management Benchmark, Thomas Telford Cartlidge D (2006) Public Private Partnerships in Construction, Taylor Francis. Thiry, 1997, Value Management Practice, PMI Many articles drawn from journals and conference proceedings. Essential text: Flyvbjerg B et al (2003) Mega Projects and Risk, Cambridge Smith, Mena and Jobline: Managing Risk in Construction Projects, Blackwell, 2006 Risk Management in Projects, John Raftery, Martin Loosemore,Charlie Reilly,Dave Higgon, 2006 John Raftery (1994) Risk Analysis in Project Management E & F N Spons Simon A Burtonshaw-Gunn (2009) Risk and Financial Management in Construction: January, Gower Publishing Ltd Uncertainty and ground conditions : a risk management approach, Van Staveren Martin 2006 Dallas Michael F (2006) "Value and Risk Management: a guide to best practice" Blackwell Kelly J. et al (2002) Best Value in Construction, Blackwell Kelly J, Male S, Graham G (2004) "Value Management of Construction Projects" Blackwell

Transferrable Skills

D2 ICT D3 Communication skills, written, oral and listening D4 Time management (organising and planning work) D6 Cognitive/intellectual skills E1 Independent working E2 Information retrieval skills E3 Key life skills E4 Group working E5 Critical thinking and problem solving

Module Structure

Activity Total Hours
Assessment (FT) 30.00
Independent Learning (FT) 100.00
Seminars (FT) 20.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 2 n/a 50.00 45% Value Management (2000 words)
Coursework 1 n/a 50.00 45% Risk Management (2000 words)