Log in

A Standardized Approach to Identify and Define Owner Value Interests and Align the E&C Response

RT-266 Topic Summary
RT 266

Overview

This research provides a standardized approach to identifying and communicating owner value interests for a project and aligning the engineering and construction (E&C) response. The findings indicate that owner’s value interests are granular and not just macro level items such as cost, schedule and quality. The results are implemented using the CII ValueShare Tool.

The CII ValueShare Tool maps a project’s characteristics onto industry-derived, prioritized value interests. Owners can use the tool as an internal exercise or as a means of communication with E&Cs. E&Cs can use it to anticipate owner needs and to develop response strategies.

The tool gives owners the means to objectively communicate their value interests for a project and how their achievement will be evaluated. It provides a list of focus points that E&Cs should consider for their response strategies. If an owner has not used the tool, an E&C may present it to an owner to jointly achieve alignment between the two parties or as an aid during negotiations. The tool can be used at any project phase – from concept to project completion – or simply for lessons learned.

Key Findings and Implementation Tools

1 : Value Interests

Owners have vast and diverse range of value interests for a project, not restricted to macro value interests such as cost, schedule, and quality alone. The interests should be identified and communicated on both on a macro and micro level internally and externally. Value interests (VI) are to characterize a project and not the owner. (RS266-1, p. 5)
Reference: (RS266-1)

2 : Project Characteristics

Are features that affect, govern, or determine a value interest. Survey results and calibrated models confirm that there is a relationship between project characteristics and value interests; and each VI is driven by multiple project characteristics rather than by any single one. The research identified 11 project characteristics as strong drivers of project value interests. (RS266-1, p. 6)
 
Parameter estimates resulting from the study indicate the relationship between value interests and project characteristics. They can be used to understand how a specific VI is tied to the project characteristics and can be a tool to understand how variation in project characteristics affect a VI. For those interested, the statistical analysis supporting these relationships can be found in Appendix G of the research report.
Reference: (RS266-1)

3 : Safety

Safety is always the key value interest and is the most important priority on any project. (RS266-1, p. 5)
Reference: (RS266-1)

4 : Consider Multiple Delivery Models or Focus Points

E&Cs should consider multiple delivery models or focus points when responding to or addressing each owner VI in a project. (RS266-1, p. 11)
Reference: (RS266-1)

5 : Similarity Between Owner and Contractor Responses

A comparison of owner and contractor survey responses showed that both place a similar level of importance on key value interests that characterize projects. (RS266-1, p. 14)
Reference: (RS266-1)
rt-266

Key Performance Indicators

Improved cost, Improved performance/achieved success

Research Publications

A Standardized Approach to Identify and Define Owner Value Interests and Align the E&C Response - RR266-11

Publication Date: 09/2011 Type: Research Report Pages: 114 Status: Reference

View Details Order Now

A Standardized Approach to Identifying and Defining Owner Value Interests and Aligning the E&C Respo - RS266-1

Publication Date: 05/2010 Type: Research Summary Pages: 39 Status: Supporting Product

View Details Order Now

A User's Guide to the CII ValueShare Tool: Value Interest Identification Module and E&C Focus Points - IR266-2

Publication Date: 05/2010 Type: Implementation Resource Pages: 43 Status: Archived Tool

View Details Order Now

Supporting Resources

Education Materials

Capital Project Value Propositions - WS266-01

Publication Date: 05/2011 Type: Video Pages: 0 Status: Supporting Product

View Details Order Now

Presentations from CII Events

Plenary Session - Using CII ValueShare to Effectively Communicate Owner Value Interests to Contractors

Publication Date: 07/2010 Presenter: Number of Slides: 7 Event Code: AC10

Implementation Session - Using CII ValueShare to Effectively Communicate Owner Value Interests to Contractors

Publication Date: 07/2010 Presenter: Number of Slides: 54 Event Code: AC10

Tags

Knowledge Areas:
Business and Project Processes
Project Phase:
Commissioning & Startup, Concept, Construction, Detailed Design (Engineering), Detailed Scope, Feasibility, Handover & Closeout, Procurement
Project Function/Role:
Architects & Engineering, Business Development & Proposals, Commissioning & Startup, Construction, Health, Safety & Environmental, Operations & Maintenance, Procurement & Contracts, Project Business Sponsor, Project Controls, Project Management, Quality Management, Risk Management
Industry Group:
Buildings, Heavy Industrial, Infrastructure, Light Industrial
Regions:
Africa – South Africa, Asia – China, India, Southeast Asia, Australia, Europe – Scandinavia, Russia, Middle East, North America – USA, Canada, Mexico, South America – Central America, Brazil
10-10 input Metrics:
Controlling, Design Efficiency, Organizing, Planning, Quality, Safety, Supply Chain

Keywords

Value Interest, Project Attribute, Measure of Value, Project Characteristics, E&C Response, Communication of Execution Strategies, Internal Alignment, Management of Change, Dialog between Owner and Contractor, Lessons Learned Exercise, Team Building, rt266

Back To Knowledge Summary

Print
Advanced Keyword Search