Document Detail

Title: RS266-1 - A Standardized Approach to Identifying and Defining Owner Value Interests and Aligning the E&C Response
Publication Date: 5/1/2010
Product Type: Research Summary
Status: Supporting Product
Pages: 39
Summarizes research into how owner organizations can more precisely determine and communicate their project value interests to contractors. Describes the CII ValueShare Tool process and functions. Explains how both owner and contractor organizations can use the CII ValueShare Tool. Also discusses how the tool’s various reports can be used during different project phases.
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Abstract

One of the main challenges to project execution is the precise definition and effective communication of a value set that reflects all stakeholders’ needs. Indeed, when owners fail to identify and convey what is important to them, a number of problems can arise. These problems may occur because not enough information is shared, because incorrect assumptions are made by one or both parties (owner/contractor), or because conflicting values have not been properly identified. Some project requirements such as budget, schedule, and physical specifications can be clearly defined and communicated because they are dictated by organizational decisions, market demands, and other constraints. Often though, other project value interests are difficult to define and even more difficult to measure and communicate. As a result, project values are many times only partially identified and communicated; frequently they are composed without a full understanding of the basis for their selection, without a method for their measurement, and without project team guidelines for appropriate departures from their set levels.

For these reasons, CII commissioned Research Team 266 to develop a new method of identifying and communicating owner value interests. The charge was to formulate a method and create a tool that would help identify the appropriate Engineering & Construction (E&C) responses (focus points). (In this research, ”E&C” refers to any party contracted by an owner to perform engineering, architectural services, procurement, and/or construction services.) The team was made up of industry professionals from both owner and contractor companies and principal investigators from academia. After performing an extensive review of the literature and an examination of existing practices, the research team conducted a survey of the industry. Using this initial research, the team developed a process to test its key hypotheses, and then created the CII ValueShare tool. An Excel-based tool, CII ValueShare is designed to help owners and contractors better communicate and respond to project value interests.

The CII ValueShare tool provides 1) an operating environment for the identification of owners’ value interests for particular projects, 2) a means to communicate value interests within the owner organizations and with E&Cs and suppliers, and 3) a decision-support process that can assist E&Cs in determining what their main focus should be in their responses to particular value interests.