Value engineering and the contractor.

The thesis sets out the need for the early involvement of the contractor in value engineering. Most publications on the subject of value engineering only view the design and the life cycle costing aspects and do not take into consideration that there is still potential at the construction stage that has remained untapped.

The research has been a qualitative in nature as no literature exists on the subject, however questionnaires, focus groups were utilised to review the areas of concerned. The research was reinforced by examination of contractor led value engineering on the case studies on Limehouse Link, Barking Reach Power Station and Jubilee Line Extension Project 102 and the contractors performance client side in the Southern Water case studies. This allowed the research study to view the contractor from their constructional expertise and to their performance with client's value management/engineering workshops.

The main barrier to contractor led value engineering within the construction industry is procurement, which been researched in depth. The nature of the existing procurement systems breaks the continuity of the project value chain, however the PFI form with a equity stake provides the best community.

A research model was developed using the project value chain as the base framework to provide a means for the contractor to be involved in the project early by using a value management incentive programme. The research model was validated in two separate focus groups that consisted of industry professionals.

To provide a "mechanism" for the contractor to become involved earlier in a project the value management incentive programme is discussed. The introduction of value management incentive programme allows the contractor to operate in pre-contract situation or post contract with the benefit that their intellectual property is protected under a confidentiality agreement or under a value incentive clause.