APM Knowledge Share Value Management SiG

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APM Knowledge Share Value Management SiG
APM Knowledge Share
Value Management SiG
River crossing
Value Management applied: River crossing.
J. Heathcote.
Centre for Project Management, School of the Built Environment, Leeds Metropolitan University, Leeds,
LS2 8AJ
E-mail: [email protected]
ABSTRACT: This case study examines what was an innovative approach to sensitive pipeline river
crossings in environmentally sensitive areas in a U.K. national park. Value management, value
engineering and risk management approaches were combined to allow a project team to think
creatively to develop a high value solution that exceeded stakeholder expectations.
The paper examines the case study using a reflective framework and attributes the success to ‘lateral
thinking’ engendered by value management approaches to create and re-examine options for
solution and test these using risk approaches.
It argues that risk management is an integral part of the value management process, and demonstrates
that remarkable value can be added where project development efforts are influenced by value and
risk management approaches.
Previously assumed too risky, a open cut method was selected and accepted by the EA as more
environmentally desirable than direction drilling (which was unfeasible in glacial clays with drop
stones) and tunnelling, the preferred method, but hugely expensive. Perhaps a million pound
saving could be attributed. More importantly the EA could henceforth be presented with a save
working approach for open cut, dramatically multiplying the financial advantage tot the water
company of the idea,
Keywords – Risk, Learning, Project Management, Value, Innovation, Interest based negotiation.
3 generic options
Open Cut
Tunnel
Directional Drilling
1000
900
800
700
600
Cost
500
Dales: Glacial valley, lots of drop stones
400
300
200
100
0
Tunnel
Drill
Open Cut
Time

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