The Development of an Industry Standard

for Property Asset Management

Why Are Standards Necessary?

Professor Steven Male

School of Civil Engineering
University of Leeds

Breakout Session

Working Assets
The Property Asset Management Conference 2006

26 June 2006

The Queen Elizabeth II Conference Centre

 Presentation

• Raise issues around why you need a standard

by exploring this through the example of Value
Management
• Identify a VM Standard and why it was needed
• Provide other examples of Standards
• Advocate that it provides a common datum or
benchmark
A Definition Of Value Management
Value Management is concerned with
making explicit the whole life package of
benefits an organisation requires from a
project, asset, product, service or strategy
at an appropriate cost
Using the right
Introducing Innovation team
HOW and Improvements At the right
time

Through co-operative working,

joint problem solving and seeking out
Opportunities and Risks
Whole life view
 EPSRC INTERNATIONAL
BENCHMARKING STUDY INTO VM

30 month funded study, UK, USA, Australia,

and countries in Europe. We interviewed and
benchmarked best-in-class clients, practitioners
and researchers in VM.
“benchmarking is the continuous process of
measuring products, services and practices
against the toughest competitors or those
companies recognised as industry leaders”

David T Kearns, Chief Executive Officer, Xerox Corporation

 BENCHMARKING PROCESS
• Our VM methodology made explicit in an easy to
understand diagram
• Structured interview guide produced for detailed
benchmarking interviews
• Benchmarking with 11 UK, 10 Australian, 18
USA, 3 European best in class clients and
practitioners
• Diverse range of practice identified - developed
a progressively benchmarked standard process
and toolkit
• At or around the same time the first drafts for a
BS in VM came out
 VALUE OPPORTUNITY POINTS

The client’s ‘Business Project’ – value management: Why Invest

The ‘Technical Project’ – value engineering: Invest in the Right technical solution

International VM Benchmarking research discovered value

intervention opportunities at 6 points in project development. Each
point has a characteristic type of study, workshop and team

Recommended a standard in VM was required

 Findings: VM Institutions

• Institute of Value Management (IVM) UK.

• SAVE International USA.
• 25 worldwide in total.
– 14 in Europe.
– France
– Japan
– Canada
 Findings: Institutions with an interest in VM

• Institute for Value Management

• Royal Institution of Chartered Surveyors
• Institution of Civil Engineers
• Association of Project Managers
• Chartered Institution of Building Services
Engineers
• Chartered Institute of Building
• HM Treasury
 VM Guidance Documentation

• Guidance notes.
– BRE ‘Value from Construction - Getting Started in Value
Management’.
– ICE ‘Creating Value in Engineering’.
– CIRIA ‘A Client’ Guide to Value Management in Construction’.
– CUP ‘No 54 Value Management’.
– BSRIA ‘Value Engineering of Building Services’.
– CIB ‘Fact sheet on -Value Management’.
– OGC ‘Achieving Excellence Guide 4 – Risk and Value
Management
 Purpose of a Standard
• Agreed terminology and definitions
• Agreed good practice / best practice
• Agreed processes, tools, techniques and
methods
• Provides a common datum for understanding
• Helps to define a skill base for agreed practice
• Examples of standards
– BS / ISO
– De facto eg MS Windows, which has become an
accepted market-based standard
• Key issue for Corporate Governance
 Examples of Standards
• VM standards.
– UK: BSI BS EN 12973: 2000 Value Management.
• Europe: ‘European Standard - Value Management’.
– USA: SAVE ‘Value Methodology Standard’.
– AS/NZS: ‘Australian/New Zealand Standard - Value
Management’.
• Examples of other Standards
– Project Management – BS6079:2002
– Project Risk Management – BS62198: 2001
– PAS55 – Asset Management
– ISO standards
• Leeds team has recommended in the OGC report for
improving property asset management that an industry
standard in PAM related to buildings is required