The Vrm Consultant Roles Construction Essay

City Authority intends to construct a new local authorities administrative central office to be located in the City Centre of Edinburgh. The purpose is to accomplish centralisation of all public sector sections and resettlement of their staff to a individual location. These sections who are presently located in assorted belongingss across the metropolis have been considered unsuitable for the intent of modern and efficient disposal of authorities services.

The client ‘s aim is to accomplish value for money by apologizing local authorities service sections in a high specification modern edifice that befits a progressive and airy metropolis. The undertaking is expected to cover around 12,500m2 of adjustment with a budget of ?25M, which could be reviewed as the design develops.

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1.1 VRM Consultant Roles

Our Role as a adviser is to garner all necessary information in front and ease the VRM Workshops, put all the information gathered prior and during the VRM workshop together to rede you, the client on how to accomplish your end to constructing a reputable local council central office to gain value for your money

Our attack is based on combined survey of Kelly, Male & A ; Graham ‘s Value Management for building, and Royal Shell BV ‘s Opportunity Framing Guide, which is derived from internationally accepted VRM guidelines Internet Explorer Information & gt ; Creative & gt ; Evaluation & gt ; Development & A ; Implementation. The workshop has been designed in stages to accomplish our end of carry oning VRM and carry through the two undertakings of placing the concern demands and run intoing the concern demands.

Shell defines chance framing ( OF ) as a structured attack for a squad to understand an chance, whether it is a new venture, a new capital undertaking ( like this Local govt HQ ) or any other chance. The accent of chance framing is on fixing for success and requires taking sufficient clip with the right people to to the full understand the chance, specify a successful result and make a program to present the opportunity/project.

1.2 Benefit of VMR

Identify concern demands, reconcile the demands and positions of different stakeholders

A better definition of undertaking aims

Supplying value for money for clients

Extinguishing uneconomical pattern

Options to run into concern demands & A ; confirm undertaking still required

Bringing approximately new thoughts for improved consequences

Enhance cognition and accomplishment of the stakeholders

Eliminate or cut down struggle and possible hazard

Balancing the usage of resources to accommodate precedences

2.0 Orientation Phase

As a adviser our preliminary work is to understand our client ‘s end, their outlook for the new local council central offices and how it ‘s traveling to impact their concern activities. This will affect meeting and questioning some cardinal staff of the Local council and all these facts findings will enable us to fix for the VMR workshop. Other pre-workshop activities include:

2.1 Local Council ‘s activities

VRM adviser demand to hold a common apprehension of the client ‘s activities. Hence, the demand to name services Local authorities council provides:

Housing: applications and fixs

Occupations: council occupations

Education and acquisition: Adult instruction & A ; Schools

Law & A ; licensing: Birth, matrimony and decease, Licenses

Planning and the environment: Planning applications and preservation

Rubbish and recycling: Household trash and recycling

Transport & A ; street: Parking & A ; roads

Tourism & A ; visitant attractive forces: museum & A ; Parkss

Community life & A ; leisure: Library & A ; athletics installations

Besides, VRM exercising will be a waste attempt if incorrect participants were invited and therefore portion of the pre-workshop activity is to place the cardinal stakeholders.

‘Stakeholders are individuals or organisations ( eg. Customers, Patrons, the executing organisation, or the populace ) , who are actively involved in the undertaking or whose involvement may be positively or negatively affected by the public presentation or completion of the undertaking ‘ . Stakeholder may besides exercise influence over the undertaking, its deliverables and undertaking squad members ‘ – ( PMBOK p23 )

2.2 Preliminary Stakeholder Mapping

This is intended to enable us place all the stakeholders to be invited for the VMR workshop

2.2.1 Leading Questions

Among inquiries to inquire you:

Interested individuals for the successful executing of the undertaking?

Interest individuals in the result of the undertaking?

Who is traveling to utilize the undertaking consequences?

Beneficiary from the undertaking consequences?

Beneficiary from the undertaking work?

Influencers/Supporters of undertaking determinations?

The workingmans on the undertaking?

Potential victim of negative impact of undertaking work?

e.g. noise of building activities

Pollution from dust

Emission from chemicals etc

2.2.2 Inner / outside circle Model:

The theoretical account places stakeholders based on their involvement and support for the undertaking objectives versus the influence or power they have over the undertaking.The inner circles is meant for the most of import and influential stakeholders. This will foreground general overview of stakeholders and their impact. Below is a guideline

Strategic Partners



Organization & A ; association





Regulatory Body









Interest group

Stakeholders to be invited

Senior responsible proprietor

Undertaking Manager

Representative of Technical staff

Representative of staff brotherhood


Cost adviser

Representative of each Department

Head of finance

Head of forces

IT/ communicating adviser

Councilors ‘ representative

Estate development adviser

Community group

Regulatory organic structure

Environmental group


3.0 Value Management Workshop Phase

3.1 Workshop Ground regulation / Agenda

Safety consciousness at W/shop

Defined & A ; agreed activities clip

Impossible to work out all job but we must enter unsolved

Options instead than destructing

One individual should talk at a clip and no break

Be expressed and no abbreviation

All phones switched off

Abide by clocking

All are co-workers and no rank at the Workshop

No dense inquiry as you challenge the obvious

2 – Day Value Management Workshop Agenda

Day 1

08:30 Introduction & A ; Aims

Where are we now?

09:00 Anchoring Presentations

What do we cognize, what do n’t we

What do we hold, what do n’t we

10:00 Break

10:15 Undertaking challenge

12:00 Lunch

13:00 Recap all thoughts put frontward in the Morning

13:30 Value Driver & A ; critical success factors

15:00 Break

Where do we desire to be?

15:15 Definition of Success

16:45 Recap everything we did today

17:00 End Of Day 1

Day 2

08:30 Recap Day 1

Where do we desire to be?

09:00 Definition of Success

10.00 Break

10:15 Strategic tantrum

12:15 Lunch

How are we traveling to acquire at that place?

13:15 Tactical issue

15:00 Break

15:15 Road map / short Term Action Plan

Workshop Close Out

16:30 Structured Feedback

17:00 End Of Workshop

3.2 Where are we now?

3.2.1 Undertaking Challenge

This enables all the participants to hold a wider apprehension of the undertaking and any interdependencies activities. Following are some of the inquiries to turn to

Leave our staff in current locations?

Build new HQs or renovate bing installations?

Lease or rent developed estate?

Proximity to staff residential countries?

Conveyance logistics?

Any outlook in staff growing that could take to farther enlargement

Promote Council ‘s repute?

If constructing new HQ is merely alternate does be commensurate with similar undertaking someplace?

Can we warrant this cost if it is more?

3.2.2 Undertaking Statement

Features of Project Statement:

Clear and expressed to any reader


A means to pass on with internal stakeholders and to prove with the direction the squad understands of the undertaking

Contains at least one figure or day of the month to give graduated table and size of the undertaking

Project statement may already be depending upon undertaking phase ; hence it is presented and discussed to corroborate the rightness of the statement

Example of Project Statement

3.2.3 Value Drivers and Critical success factors

Value drivers act as a lever on the result of the undertaking, hence participants will place them to increase the success of our VRM

Standard illustrations are

Will the undertaking

cut down Capex

cut down Opex

enhance productiveness

Conformity with HSE criterion

Conducive environment for staff and clients

earns the local council authorization more repute

3.3 Where do we desire to be?

3.3.1 Definition of success

This is another brainstorming subdivision to place possible hazards, critical success factors and step of success. A wide scope of steps for all TECOP facets of the undertaking that include

T- Technical









Life-cycle cost


Evaluation method


Economic theoretical account

Regret costs












Knowledge Management

Systems, IT









Nongovernmental organization

3.3.2 Strategic Fit

This tool will set up a common apprehension and verification of how the undertaking fits within the organisation, the local council. The tool requires the participants to see the broader local council context of why the undertaking should be addressed. We will be analyzing Seven Sustainable Development Principles that provide a prompting list at the Workshop

Generate Profitableness:

Reduce Capex

Reduce Opex

Lifecycle Costss

Manage Resources:


Generate Employment

Service Inputs/Efficiencies

Energy / Water / Consumables / Chemicals / Fuel

Deliver Value to Customers

Stockholders ( Reputation Management )

Merchandise Receivers- ( Schedule/Quality ) Driven

Government ( Recovery, Revenue )

Regulators ( Conformity )

Protect the Environment

Emissions/Discharges, Waste, Noise

Protected Areas Minimum Environmental Standards


Respect and Safeguard People

Human Rights, Diversity





Benefit Communities

Gross Distribution ( Influencing Governments )

Local Content

Local Capacity



Work with Stakeholders





3.4 How are we traveling to acquire at that place?

This is rating and development period of the VM

3.4.1 Tactical issues

Project bringing clip frame

Is it traveling to hold any impact on the local authorities concern?


Beginnings of fund

Is the money sufficiency,

Credit installation or subvention if budget is overshoot

Procurement path

Hazard for each procurance path

options funding option


Tender procedure

Value Engineering to optimise whole life design quality


Is the location suited

Facility Biotechnologies

Is the installation plenty for the figure of staff

Does it hold adequate proviso for maps like: lavatories, file awaying, security demand etc?

Cardinal public presentation index e.g


Quality of work etc

3.4.2 Undertaking Roadmap

Harmonizing to Shell, the roadmap is the in agreement program for the bringing of the undertaking, and aligns the activities of the undertaking squad, the persons in the line of sight and other stakeholders. The undertaking roadmap should joint which activities need to be undertaken by when and by who, including:

The timeline, with day of the months for cardinal milepost determinations

The cardinal determination points

Any intermediate determinations between cardinal determination points

The deliverables, activities, controls and confidence required to back up the determinations.

Recap of determination Gate

Do we understand what we are get downing?

Have we looked broad plenty?

Have we selected the optimum solution?

Is everything in topographic point to guarantee success?

Are we ready to run?

4.0 Risk Management Workshop Phase

4.1 Risk Management Objectives / Workshop Agenda


08:30 Introduction & A ; Aims

08:45 Undertaking highlight by the Project trough

09:15 Designation of Hazard

10:00 Break

10:15 Continue Identification of Risk

11.15 Assign proprietor

12:00 Lunch

13:00 Recap all thoughts put frontward in the Morning

13:15 Risk appraisal ( Risk Matrix )

15:00 Break

15.15 Decide response ( Take, Treat, Transfer, and Terminate )

16:45 Recap today exercising

17.00 Presentation on Action Plan- ( Risk Monitoring and control )

The aim of Risk direction is to place and analyse all possible hazards to the undertaking and propose equal steps to react to the hazard, supervising & amp ; control.

Shell ‘s Risk Management System ( RMS )

4.2 Risk Identification

Participants will place Risks, assign proprietors and gaining control in Risk registry

The hazards could be categorized as follows:

Undertaking hazard

Failure to run into timescales

Increased cost/resources demands

Undertaking failure

Health & A ; safety hazard

Workplace accident


Serious hurt or decease

Organizational Risk Issues

Inadequate figure of undertaking squad members

Inexperienced undertaking squad

Deviation from undertaking aims

Stakeholder struggle

Fiscal hazard

Improper cost estimation

Instability of hard currency flow

Undertaking cost shoot-up due to a ground of assortment


Regulatory/Compliance hazards

Breach of ordinance

Failure to run into legal/contractual demands

Legal action

4.3 Risk appraisal

Having identified and categorized the hazards participants will follow Risk appraisal matrix which is a planar grid scaled chance and impact ( effect ) that allows hazard to be ‘scored ‘ or ranked comparative to one another

E.g a. effect with qualitative effects ( repute, legal ) and others with quantitative effects ( Cost, agenda )

b. Qualitative and Quantitative likeliness graduated tables

Hazard will be evaluated by inquiring participants inquiries like

What could go on?

What is the existent impact?

What is the worst instance scenario?

What are the alterations if it happens?

This rating will be based on participants experience and the history in the Industry.

Example of Risk matrix to be used is this

Impact / Consequence



























The in agreement RAM graduated tables for chance and impact consequences in the Risk badness intervals will direct the Workshop squad to specify hazard response scheme

4.4 Decide Response ( Take, Treat, Transfer, Terminate )

Having identified the hazards and measure the impact appropriate scheme will be formulated:

Return: Accept hazard as built-in to the undertaking and this could be feasible for high effect but likeliness hazards,

Dainty: Reduce by actions, which will minimise the impact of the hazard on undertaking cost, agenda, quality or aims

Transportation: Mitigate by transportation of hazard to a 3rd party ( e.g. Insurance, undertaking, fudging )

Terminate: Extinguish the hazard wholly either by design or other option so that impact is no longer felt by the undertaking

4.5 Risk Monitoring and command

Hazard registry is a papers that will be used to document all relevant information refering to the undertaking hazard and this should be a unrecorded papers, a alone beginning of mention for all hazards and their current position

The participants will brainstorm to measure all the thoughts put together to come up with undertaking develop within a timeframe, cost effectual and quality

5.0 Implementation Phase

5.1 Follow up Report Recommendation

A elaborate formal study that recommendations among will include

Need to do VRM a uninterrupted exercising

A short term action program to reaffirm the actions for the Workshop squad to take away, which will include ( what, who and by when ) needed for immediate focal point determination identified in the roadmap.

A structured attack stakeholder battle program which maximizes their positive impact that will let value in the undertaking to be delivered

Undertaking confidence program which will concentrate deliverables subdivision in the roadmap and screen TECOP ( Technical, Economic, Commercial, Organizational & A ; Political ) spectrum


A usher to the undertaking direction book of Knowledge PMBOK 4th Edition, p23

Part 1 Value Management Study-http: // # ixzz2BZXbqkfC

Value direction Guideline – September 2004 TAM04-14, p7

David Pitchford, Best direction pattern for portfolio, programme, undertaking, hazard & A ; service direction. Launch of Management of Value ( MoVa„? ) -OGC Official Product. P6

Opportunity Framing Guide, Royal Dutch Shell, September 2010 Version, pp 20-23, 44

J. Alvarez, F.M Gast & A ; D Pieterse, Construction Risks: Identifying and Mitigating, Nixon Peabody LLP. p11

Part 2 Contentss

An rating of current and possible hereafter application of Value and Risk Management into ( QS/CPM/FM/BS ) professional services in

the building sector in Nigeria


Kernel of VRM

Current position of VRM in Nigeria

Case Studies of VRM



An rating of current and possible hereafter application of Value and Risk Management into ( QS/CPM/FM/BS ) professional services in

the building sector in Nigeria


The chances in building industries in Nigerian are tremendous runing from route, rail, existent estate, oil and gas industries. Real estate is fast turning in metropoliss like Abuja, Lagos & A ; Port-Harcourt. Office rent in Nigeria rank 5th highest globally ( harmonizing to Knight Frank research ) . However, are these latent chances being explored and are the stakeholders acquiring values for their money. With these concealed chances in Nigeria merely Julius Berger Plc is the quoted company in Nigeria. More than 70 % of occupants in Nigeria live in individual room slum flat in both urban & amp ; rural countries. Most roads are dilapidated with dire need to reshape the apparently dead railroad system to cut down the heavy traffic and amendss being done on the roads by Trucks chiefly used in transporting goods from one portion of the state to the other. Nigeria has the possible to develop its substructure which is in a shortage province but how does Nigerian pull off the legion chances to the benefits of the people! From research carried out it is obvious that Nigerian Construction industry has tonss of challenges.

Harmonizing to Oluwakiyesi 2011 ‘ Nigeria ‘s building sector histories for 1.4 % of its GDP ( Q3’10 ) More of import, is the fact that despite the growing seen in the building sector end product, ( 7 twelvemonth CAGR of 35 % , its part to entire GDP has remained at terribly low levelsaˆ¦Nigeria ‘s entire GDP has risen to about 495 times its size. On the contrary, building sector GDP has merely grown to 125 times its size in 1981 ‘

Besides Sanusi 2008 reaffirmed this ‘Over the last decennary, several alterations have occurred in Nigeria, which have helped all sector of the economic system, particularly the edifice & A ; building sector. With dual digit growing rates in the last 3 old ages, the building industry has outgrown all other sectors of the Nigerian economic system. However, its part to the Nigerian GDP and employment labor are still really low. Despite its impressive public presentation, the industry faces a important figure of challenges including the deficiency of local skilled labor, power deficit, the inaccessibility of stuffs, and the unethical patterns that are really common in the industry ‘

Kernel of VRM

It is imperative to specify and understand the kernel of Value & A ; Risk Management

Value and Risk Management stands on common base to supplying best information for determination shapers when puting aims and direction schemes.

TAM0414 Value Management Guidelines describes ‘Value direction as a structured, analytical procedure for developing advanced, holistic solutions to complex jobs ‘ and mentioned the undermentioned as its cardinal features:

A specific methodological analysis

Based upon a originative job work outing attack

Involves cardinal stakeholders in a managed squad attack

Focuss on map Internet Explorer what it must make, non what it is

Focuss on accomplishing value-added solutions

Based upon on integrating

Focuss on undertaking acquisition

‘Project Risk Management includes the procedures concerned with carry oning hazard direction planning, designation analysis, responses, and monitoring and control on a undertaking ‘ – ( A Guide to the undertaking direction organic structure of cognition PMBOK. p444 )

Current position of VRM in Nigeria

Most of the hazards related issues in Construction undertaking in Nigeria lead to low quality of work, over budget and clip overproductions. Many deficiency Risk direction cognition & A ; frequently apply insurance as mitigating tools for identified hazards. Ijaola 2012 said that ‘many surveies carried out in Nigeria indicated that formal hazard appraisal is frequently non carried out taking to unsuccessful undertakings, sometimes constructing prostration or even harm to building workers. Ojo ( 2010 ) carried out an empirical survey and found out the hazard factor with the highest happening is design alterations during building, followed by unequal specifications while Obiegbu ( 2010 ) found out that presenting the design to unqualified interior decorator is the most of import ranked factors in hazard classification ‘

Besides he identified deficiency of cognition of hazard direction techniques as a major job as it was clearly identified from his findings that most of the average value of hazard direction techniques calculated by the sorted contractors falls within ‘No ‘

Frequently in Nigerian building industry cost is set aside for budget overproduction but these financess are most clip ne’er plenty to run into up with the eventualities, which means that a proper hazard direction is non in topographic point. Aibinu & A ; Jagboro 2002 confirmed this ” ‘Contingency amounts are allowances of undertaking cost included in the pre-contract estimation for the intent of guaranting that the budget set aside is realistic and sufficient to incorporate the hazard of unanticipated cost addition during building. The information obtained for this survey in regard of 61 completed edifice undertakings revealed that eventuality allowances in all the instances were unequal to countervail the cost overproduction ‘

Risk direction entails hazard designation, hazard analysis and responses. Harmonizing to Tang et all his empirical survey revealed that building industry has moved to put on the line decrease alternatively of hazard transportation, while Dada concluded that hazard transportation as extenuating tool is still the highest attack in Nigerian building industry, and this is followed by hazard turning away and hazard keeping.

Apart from nutrient, shelter is the following when you consider human demands Nigeria with a population of 150,000,000 has non been able to work out the job of lodging. There are many lodging estates developed by Estate developers and authorities to run into the demand of the public. However, most undertakings are non delivered to standard, within budget and timeframe. Tenants do non have value for the money they pay. Harmonizing to Ladi & A ; Ruya 2012 who examined the social-economic and environmental context of lodging bringing in Kaduna they found out that most stop users are non wholly satisfied with some societal comfortss, lodging suppliers, and term of import value standards. They argued that there is undistinguished part of terminal users to the lodging bringing. They so advised that ‘There is the demand to research the usage of VM in lodging proviso for effectual bringing of undertaking aims and fulfilment of user satisfaction in Nigeria ‘

Value direction non merely tries to cut down cost but to fulfill both the client and all stakeholders, and stakeholders include the users. Issues in Nigerian building Industry are legion runing from corruptness, competence of the undertaking direction squad and bringing within clip frame. Inability to present undertaking within timeframe is corroborated by Aibinu & A ; Jagboro 2002 and harmonizing to them ‘from bing literature on the building industry in Nigeria and based on the preliminary probe conducted at the beginning of the survey, it was possible to place certain major effects of hold on undertaking bringing.

The six effects of hold identified were:

Time overrun,

Cost overproduction,



Entire forsaking and


One of the undertakings in Value direction workshop is to place value drivers and success factors, which include decrease in capex & A ; opex, safety betterment & A ; enhance productiveness etc. It is a brainstorming subdivision to place possible hazards in all facets of the undertaking that include proficient, Economy, Commercial, Organization and Political. This procedure is missing in most building undertakings in Nigeria and this is deduced from Eshofonie 2008 who identified assorted factors taking to project hold and cost overproduction in Nigeria building industry to include:

Monetary value fluctuation

Deceitful patterns and kickback

Poor contract direction

Material procurance

Poor proficient public presentation

Escalation of stuff monetary values

Stakeholders ‘ designation and aim of the undertaking are portion of the preliminary work that VRM adviser does in readying for VRM workshop and this helps to place cardinal country of the undertaking to place and analyse. Since most undertakings in Nigeria do non follow due procedure following factors affect undertaking bringing as highlighted by Eshofonie

Bad Weather

Construction trust

Inadequate production of natural stuffs

Government policies

Design alteration

Relationship between Management & A ; labour

Incorrect method of appraisal

Mode of funding, bond and payment

‘Eshofonie so concluded that ‘high building costs have obvious negative deductions for the major histrions in peculiar, and the industry in general. Undertaking forsaking, bead in edifice activities, bad repute and inability to procure undertaking finance are all deductions of high building cost ‘

Besides, Ahiakwo & A ; 3 others 2012 concluded that most Nigerian clients moved to building phase without structural drawings and full elaborate technology drawings and measures of measures, and this posed a hazard of misinterpreting designs, and design determinations were left in the custodies of shopkeeper. Their research besides revealed that clients did non follow edifice ordinances and criterions while transporting out their undertakings.

From the aforementioned it could be deduced that Value & A ; Risk direction is non yet to the full integrated into building industry in Nigeria if at all it exist. Nigeria is a settlement of British and it should borrow a foliage from it. VRM is an incorporate portion of building in UK and this has helped it a batch from the following instance survey.

Case Studies of VRM

Intensive Value direction workshop was conducted into the London Underground, South Wimbledon renovation undertaking. The aim of the undertaking was to heighten the rider environment and better operational functionality. This undertaking was portion of the Northern Line ‘s southern terminal ‘s 10 station-improvement programme. The value direction workshop non merely reduced the cost by about half but still developed an execution program that achieved rather a figure of undertaking benefits.

Value direction in Pizza Hut UK- A three twenty-four hours workshop was conducted to reexamine the 1997 Pizza Hut anticipated programme of 25 refit undertakings ( Pizza bringing Units ) at an estimated cost of ?145,000 each. The value direction workshop was able to salvage ?14,000 per undertaking, raised the criterion of the undertaking and reduced the average clip between care. Besides contract period and long lead points were shortened. A return on investing of 35:1 was achieved for puting approximately ?10,000 on Value Management Workshop

Silwood Estate Regeneration, New Cross, London- Demolition of low and medium rise blocks ( up to 11 floors ) and replacing with new houses and flats ( up to 5 floors ) in a phased development. Phase 1 comprises destruction of 6 blocks and replacing with 116 units, new roads, external plants service recreations and redress plants. Follow on stages involve destruction of a farther 22 blocks and replacing with a farther 500 plus units and 100 plus refurbished units, new community edifices and a baby’s room over a 7 twelvemonth period.

Value direction in stage 1 though conducted tardily but the undertaking squad learnt to utilize it as built-in portion of the subsequent stages and was able to utilize the information gathered from tenant satisfaction questionnaires to integrate more characteristics with increased cost but run intoing the demands of their clients to a big extent.

‘The new curate at Liverpool Hope University used value direction techniques to assist recognize major enlargement programs. The value direction exercising helped him accomplish the consensus of all stakeholders sing the design brief used in securing the design squad ‘ – ( Constructing excellence )

From the above instance surveies in UK following could be deduced:

Value direction workshops has brought about

Reduced cost

Improved undertaking quality

More characteristics into the undertaking

Realized enlargement

Integrating VM into subsequent stages after late start up in 1st stage

Nigeria needs to shift itself to be able to confront present and future challenges in building industry. The human capital to confront the challenges is available as Ogunsemi & A ; Aje 2010 claimed that ‘all identified countries of competences of measure surveyors are important to the pattern of value direction and Nigerian Quantity Surveyors exhibit all the needed countries of competences of value directors ‘

Future of VRM in Nigeria

Harmonizing to the prognosiss made in June 2010 in a study by Global Construction Perspectives and oxford Economics, Nigeria ‘s building industry is turning fast and is likely to turn astronomically over the following decennary. The aspiration of Nigerian authorities is to making more lodging, bettering rail and route transit, bettering public services, hotels, tourer attractive force centres, making new occupations and eliminating poorness and all these are building activities.

Sing the evolving universe both natural and unreal crisis which were ne’er envisaged have happened and still go oning e.g

Bird Flu

Tsunami & A ; recent storm sandy in US

Unskilled workers

Fatality in building sites

Construction overheated market 2006

Fiscal crisis 2008

Indonesian sand prohibition during civil building

Recently, inundation has done lay waste toing amendss in different portion of Nigeria this twelvemonth, doing many people homeless by destructing houses value at multimillion naira and interrupting apart parts as implosion therapy enveloped roads and damaged Bridgess. Oil & A ; Gas companies declared ‘forces majeur ‘ due to the amendss to their installings and inabilities to entree their installations.

It is obvious that hazard and spectrum of hazard are increasing twenty-four hours in twenty-four hours out. Scarce resources should non be allowed to be a waste. Hence, Nigeria as a state needs to make a batch to turn to the present and future challenges in its Construction industries and the merely available attack is the universally acceptable mechanism called Value & A ; Risk Management ( VRM ) . Nigerians need to hark to the call of Popescu MIIRSM p10 that stated ”the success of any organisation depends on its ability to make and turn value for its internal and external stakeholders. The creative activity of value comes when organisation is able to place and do investings with merely a positive return or net present value sing all the hazards in the undertaking. Hence, hazard and chance go manus in manus ‘


Nigerian demand among others

Particular preparation for Quantity surveyors and all building professionals to maintain them abreast with the current waies in the building industry

Serious and good co-ordinated consciousness run on the demand to do VRM incorporate portion of building

Risk direction cognition is lacked by many and therefore good coordinated Risk direction preparation should be put in topographic point

Constitution of Value Management institute

Enforce regulations and ordinance steering building industry

Sensitize multitudes & A ; all cardinal Stakeholders to be more committed to building activities

Be committed to contend against corruptness

Ensure that lone professionals are allowed to run in building industry.

Finally, Nigerians need to be proactive instead than reactive to run into the hereafter challenges its turning building industry airss by set uping good coordinated Value & A ; Risk direction schemes.


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