New approach to measuring ‘Value for Money’ proposed at COBRA conference

11 November 2009

TPS Commercial Director, John Dye, has highlighted the need for a wider industry approach to measuring value for money in a presentation given at the 2009 RICS Construction and Building Research (COBRA) conference this autumn.

Based on a paper co-produced with Yvonne Simpson of the University of Greenwich, entitled “Value for Money: A Quantity Surveyor’s Perspective of the Quantitative versus the Qualitative,” the presentation discussed the impact of quantitative bias in the construction industry towards value for money and the quantity surveyor’s potential for extending their existing qualitative skills. The event, usually weighted more towards academic representation, saw Dye speak with the benefit of over thirty years’ experience as a Chartered Quantity Surveyor.

Dye proposed that value for money should not be measured by a single-track approach but by more than two methodologies. He suggested using differing investigative stances such as researcher style, data sources and investigative methods; but, in order to combine these and facilitate them, Dye believes there is a need for a greater partnership between industry and academia - the aim being to ensure greater cross-over of industries’ needs and research methodologies, and further research into a distinct gap between the ways in which value for money is managed across the public and private sector.

Dye explained: “Due to Best Value principles being enshrined in legislation there is plenty of evidence that these concepts are policy in the public sector; however there is little evidence of such consistency in the private sector. The most interesting finding in the private sector was how it should be rewarded for achieving value, which amounted to financial recognition for innovation.”

The presentation examined the impact of quantitative bias in the construction industry towards value for money, as well as looking into the quantity surveyor’s potential for extending their existing qualitative skills. At the conference, Dye explained his beliefs that the measurement of value for moneywould benefit from using a greater proportion of qualitative measurement tools, such as customer satisfaction, user values and fitness for purpose; as compared to quantitative tools, such as waste targets, defect reduction and cost reduction.

Expressing his delight with Dye’s contribution, Paul Bowen, Chair of the Local Organising Committee and Professor in the Faculty of Engineering and the Built Environment, University of Cape Town, said: “The knowledge that was so generously shared was immense and we have our speakers to thank for making the conference the success that it was.”

The paper has not yet been published in the public domain but will soon be made freely available from the RICS Cobra website. For more information contact: dye.john@tpsconsult.co.uk.

Links

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