Developing an integrated risk and value management framework for construction project management

The management of risk and the search for best value for money in the UK construction industry have been the subject of many investigations over the last decade, as clients and the industry as a whole realized that there is indeed much room for improvement. Currently, many construction project management consultants offer value and risk management services either separately or combined within a broad project management framework. This paper will demonstrate how risk and value management methodologies can be interfaced both theoretically and in practice and will propose a framework for integrated value and risk management within construction project management. Before looking at the underlying interface between risk and value management, a review of the evolution of value and risk management frameworks is carried out to situate the theoretical context and to explain the basis for developing the integrated framework. Numerous instances of risk consideration within different value management frameworks are explained and compared. A tentative integrated framework is then developed from the concepts and variables identified from the review of literature and existing practices. This integrated framework is currently being evaluated by means of a mixed-methodological research, which is outlined in the paper.