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Value management incentive programmes and clauses are a powerful mechanism for allowing continuity of contractors’ input throughout a project delivery. The fact that incentive programmes have been overlooked in the reports and publications portraying alliancing and partnering as the way forward, means that this effective tool has been largely lost to the UK construction industry.
The book considers value incentive programmes in depth, highlighting their application and benefits to client and contractor. It provides an insight into contractor-led value engineering and its effective use in different procurement forms. To highlight the alignment of value within the different procurement forms the project value chain has been developed from strategic value to operational value.
Value management incentive programmes originated from the American defence programme and their use is not limited to the construction industry, but can be applied to any industry sector.
This book reviews the current value incentives that exist in the USA and Australia. It also examines the procedures that are undertaken in their application within the project environment. As no formalised UK value incentive clauses exist, this book also considers the criteria that should be met, and how they should be implemented. The impact of a value incentive clause on the various parties involved in a project is also investigated.
As one of the first publications to focus on value management incentive programmes, this book will be essential reading for all those looking for a way to offer value-based incentives. It will provide a useful reference on the subject and will be beneficial to clients and contractors in the application and implementation of such programmes.
