Value-Based Management in the Supply Chain of Construction Projects

The scope of this paper is to examine the idea of using the management philosophy Value- Based Management (VBM) as a supplementary management tool to control the total building process in a more efficient manner compared with conventional procedures. VBM has been used as a successful management tool inside independent companies for several years, but we want to test this tool in a building organization, i.e. an organization where different companies work together to define and build a unique building. In this paper the approach will mainly be theoretical and aimed at preparing a methodology for practical use in a building organisation. The idea has subsequently been used in a concrete building process, and the results from this project are explained in another paper. The result of the theoretical approach in this paper lead to a well-founded hypothesis stating that the supplementary use of VMB in a project organization with different legal parties can be a more proactive control tool, i.e. the management get an earlier warning if the process go off the rails compared with traditional control mechanisms.