BRE BR398 PDF

Introduction

The introduction of the ‘Best value' initiatives has brought new demands on the social housing sector. Registered social landlords (RSLs) are now being expected to show best value in their construction projects.

The prerequisite for best value in the public sector requires the delivery of the quality of service that local people expect at a price they are willing to pay. This invokes the key value management (VM) components for best value: performance, user expectation and price. It is believed that these requirements can be met using well-organised and systematic VM tools and techniques.

VM is a group decision-making technique that has been tried and tested. It has a good track record having been used since the 1940s to add value to manufacturing, construction processes and public services.

RSLs must meet the demands of the UK Government's construction task force to compete for development funding. Under task force targets set out in Sir John Egan's report, RSLs should cut capital costs, construction time and defects by 10% (Egan, 1998). They are to make these changes by pursuing ‘best value' in its widest sense.

The social housing sector is being asked to make major changes in construction practice over a relatively short period of time. VM techniques can be used as a vehicle for this change.

There are many guidance documents now available detailing the VM process but none that specifically relate to social housing. This booklet has been produced at the request of DETR and representatives from the housing sector who believe that RSLs would benefit from guidance related specifically to them. This is a simple document, introducing the concept of VM, the VM study or workshop and the areas where it is felt RSLs would benefit from implementing this structured approach.

It is not a handbook telling you how to do it! A reading list, training courses and organisations with further information on value management are listed on page 12. These should be your next step if you are considering a VM study of your own.

Included within the document are examples of real projects where five VM studies were undertaken, and quotes from those who took part in these studies. All the case studies were new build projects. It was not possible to identify suitable maintenance based case studies but all the RSLs believed that the VM process could be applied to their planned maintenance programmes and several will be doing so in future. One of the key features of maintenance programmes is that the work will normally be undertaken with tenants in residence. The VM process allows the project team and tenants to come together and structure the project in such a way that it meets the needs of all parties. Communication is key to a successful project and a forum which allows the free exchange of information and ideas between all stakeholders can only increase the chances of success!