‘You can’t dip in and out of value management’

Value and risk management has a vitally important part to play in ensuring that projects provide the best possible value for our clients. However, quite often the principles and processes get lost or sidelined over time in the constant drive for quicker turnaround and lower fees. We all need to be reminded of best practice not only to benchmark our own experiences, but to stimulate new ideas and approaches. That’s why I feel that this book is so important.

This is a substantial book, some 380 pages, which covers risk management, value management and the combination of both into an integrated approach.

It is very well written in a clear and concise prose that requires you to read, rather than skim. The author describes an approach rather than a recipe to be slavishly followed. This is entirely appropriate as this is not a ‘How to’ guide. As the author states, to lead a value and risk study requires training and experience.

This is a book for everyone who has an interest in risk or value management, plus those that should take an interest.

Quantitative risk analysis is complex, powerful and very, very dangerous

Clients will benefit from the many examples of how such studies will help them achieve their goals and to understand the types of benefits that can be achieved. Construction professionals will gain an appreciation of the depth of investigation and analysis that should be undertaken and to appreciate the short sightedness of short cutting the process.

Students in construction will gain insight into the reasons for projects and to see projects as a means to an end and not as an end in itself. Even battle-hardened risk and value managers like myself will benefit from revisiting best practice, refreshing our tools and techniques and gaining new insights to stretch ourselves.

I must warn you that although there are numerous anecdotes and examples, this isn’t a book to leave on the shelf until you need a quick answer or reference. You can’t easily dip in and out of it. This isn’t the book’s fault though; you can’t dip in and out of value management. Value management is a concept, an approach, a continuum throughout the project life span.

Less than a third of the book is specifically about techniques used in risk and value management. I feel that this section will be of greatest benefit to existing practitioners or students of risk and value management for whom an understanding of the group dynamics inherent in most of the techniques will help bring the ideas alive.

Even battle-hardened risk and value managers like myself will benefit from revisiting best practice and refreshing our tools and techniques

There is little in Value and Risk Management, a Guide to Best Practice regarding quantification of risks other than a basic explanation of the theory and a heavy dose of warnings regarding the quality of the input and the analysis itself. Quantitative risk analysis is complex, powerful and very, very dangerous. The analysis can be extremely misleading; “Garbage In, Gospel Out” as the author puts it. There are specific texts such as Quantitative Risk Analysis by David Vose if this is your particular interest.

There is also a useful selection of checklists (such as briefing checklists, a study toolkit, forms to use to capture workshop output, value profiling proforma and guidance on room layouts for workshops) prompts forms and tables.

Overall, I am impressed with this book, which should become a standard text for all risk and value management students and should find a home on the shelf of most risk and value managers if only to remind us of best practice.

Value and Risk Management, a Guide to Best Practice is endorsed by several organisations and institutions including the APM, CIOB, ICE, IVM, RIBA and RICS. It is a companion volume to the CIOB’s Code of Practice for Project Management for Construction and Development.