VALUE FOR MONEY – IMPLEMENTATION

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VALUE FOR MONEY – IMPLEMENTATION

We are the pioneers in research and advice in delivering value for money.

At present, there is an extremely high focus of Value for Money (VfM). With Alliance contracts delivery becoming the universal delivery system on public projects in Australia.

Even though there are guidelines and anecdotes from a multitude of private and overseas projects, there remains a shortage of expertise of guidance available to achieving effective and efficient delivery and demonstration of Value for Money here in Australia.

In recent Department of Treasury & Finance and Partnerships Victoria reports, there appears to be a major performance shortfall in the initiation of projects, as a result of:

• Government not adequately defining the Value Proposition and VfM criteria at Business Case, so projects have no clear specific project objectives or any real means of measuring VfM for specific projects;
• Little incentive to achieve innovation and efficiency throughout projects;
• No evidence of ‘game breaking’ or ‘high’ performance even though high performance teams are allocated to the projects
• The cost benefit of fast tracking projects is misunderstood.

Exner staff have undertaken significant research in defining Value for Money on major projects. We have developed systems to achieve and demonstrate Value for Money and can offer a great deal of practical advice to your project.

Our work in this area can be illustrated by our Value for Money process diagram:

Areas of Exner’s work in Value for Money has specifically involved:

• Value Engineering workshops
• Value for Money Workshops and mentoring
• Benchmarking for design development and management
• Financial management
• Programme management
• Monitoring Quality outputs
• Documenting and monitoring the achievement of project objectives
• Guidance to project management team

Contact Exner to gain more information on our research into Value for Money and how the model can be used to add value and innovation to your projects.

Papers referred to here on Value for Money are located in our downloads section

(1) DTF 2006, Project Alliancing, Practitioners’’ Guide, DTF (Vic) April 2006. (2) DTF 2009, In Pursuit of Additional Value – Benchmarking Study into Alliancing, DTF and Evans and Peck, October 2009. (3) DTF (WA) and DTF (VIC) 2009, Exposure Draft Guidance Note No.3- Key Risk Areas and Trade Offs, DTF (WA & VIC), November 2009. (4) National PPP Forum – Benchmarking Study Phase II, Report on the performance of PPP projects in Australia when compared with a representative sample of traditionally procured infrastructure projects, The University of Melbourne, December 2008. (5) Partnership Victoria 2009, Partnerships Victoria Requirements, Melbourne February 2009.