By considering a client’s approach to both value and risk as a project or programme develops, the Value Toolkit’s two integrated streams provide a transparent and rigorous process which will lead to better informed decisions being made more quickly.
The Value Toolkit starts with the assumption that value can be defined, but also that it is fluid and can be either created or destroyed. Therefore, the Value Toolkit provides guidance on how value can be defined and measured, but it is neutral on what value means on any project or programme. Instead, it provides a robust framework within which clients can explore their required outcomes.
The Value Toolkit process considers five phases of an investment lifecycle:
Need
Purpose: The Need phase defines the problem that needs to be solved or goals that need to be achieved. It includes consideration of whether any intervention is required or whether a ‘do nothing’ option is the right conclusion at this stage.
Key Decision: The Need phases answers the question, ‘ Is there a case for change?’ At the end of this phase, the final task for the client and the Strategic Team will be to review the Strategic Objective Profile and confirm that a case has been made to start developing solutions.
Optioneering
Purpose: The Concept Design Optioneering phase considers alternative options that address the need. Outline designs are created, compared and evaluated against the the mission and the Value Profile. A recommendation is made on the preferred option.
Key Decision: The Concept Design Optioneering phase answers the question, ‘What is the preferred option?’ At the end of this phase, the client sponsor and the Strategic Team must confirm the scope of the option to be taken forward and the Delivery Model.
Design
Purpose: The Detailed Design Phases develops the selected solution in enough detail to allow Delivery Organisation(s) to be procured; this may be concept or full detailed design, depending on the Delivery Model selected.
Key Decision: The Design phase answers the question ‘What is the preferred option for delivery?’ At the end of this phase, the final task for the client and the Strategic Team will be to confirm the preferred option for the delivery of the project or programme.
Delivery
Purpose: The Delivery phase commences when the contract is award and the solution delivered, including any further design work. Throughout this phase, progress is monitored, both to record outcomes and realised in delivery and to refine predicted outcomes relating to operation.
Key Decision: As well as measuring and monitoring value through delivery, this phase ultimately answers the question ‘Has the value been delivered?’ At the end of the Delivery Phase, the Strategic Team will confirm to the client the outcomes achieved. This will give the client a picture of the efficacy of the solution and the Delivery Organisation(s) at that moment in time. This may be the basis for triggering contractual incentivisation mechanisms, although these may extend well into the Operation phase.
Operation
Purpose: The Operation phase is when the solution is in use, both during and beyond the contract period.
Key Decision: The Operation phase poses the question ‘Does the solution meet the need and are the benefits being realised?’ Changing demands will often lead the client to review their asset. This may lead to further interventions or the end of the functional life of the asset (for example, upgrades, maintenance, change of use, etc.). Each new intervention should be taken through the Value Toolkit phases, which will determine the preferred viable option.
Whilst these five phases can easily be aligned to the delivery of a construction project, they are designed to be generic terms that can be applied to any intervention in the built environment, whether that be constructing a new asset, or repair / maintenance of an existing one.
For each phase the Value Toolkit set out a series of activities aimed at helping the client to make informed, value-based decisions and, ultimately, to drive better outcomes. These are shown in the integrated process, available here.
