Defining the parameters
The value for money (VfM) for a project can be determined by understanding the whole-life costs and what benefits can be achieved from the project. This can be achieved by identifying the key performance indicators (KPIs) to deliver the VfM in fairness to all parties and establishing the performance indicators and risk-reward mechanisms to maximise the key result areas (KRA’s). Adopting a one-team mentality will help define equal pain and gain share with owner and non-owner participants (NOPs). It is also key to regularly adjust and re-adjust the outcomes based on project ‘health checks’ and tighten the benchmarks through continuous improvement for standardised projects.