Description
Value for money performance has been identified by the Omani Government as a priority area for securing efficiency improvements and releasing resources for use in delivering front-line services. It has been stated that value for money performance assessment in public sector organisations in the Oman has been varied across regions and projects, bordering on inefficiency and ineffectiveness.
As a consultant project manager write a report to the Omani’s public sector project monitoring agency (department, ministry, etc) that:
- Explains the concept of value for money in the context of public sector procurement
- Outlines failure factors in value for money performance assessment and attainment of public sector infrastructure procurement in Oman
- Outlines an approach(solutions) that mitigates failure factors outlined in part 2
- Describes briefly and specifically the opportunities for value management in the strategic and project briefing of a public sector infrastructure project to be procured as a design and build project.
Maximum 2500 words
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Explanation & Answer
Attached.
Value for Money
Thesis statement: As a consultant project manager to the Omani’s public sector project
monitoring agency, the following will be a report on how the government will get a value for
their money.
I.
II.
Introduction
Description of value for money.
III.
Failure factors in VFM performance assessment and attainment.
IV.
Failure factors mitigation approach
V.
VI.
Opportunities for value management in the strategic and project briefing
Conclusions
Running head: VALUE FOR MONEY
1
Value for Money
Institution Affiliation
Date
Running head: VALUE FOR MONEY
2
Introduction
Value for money is a term that is used to describe the return that an investor, agency,
state or an individual gets from the money they spend. In business, it is always the primary aim
to get a return on investment on every coin that is spent through the different projects that one
engages in. Many governments around the world plan during their budgeting on how they will
spend their money through the development of the state of the nation (Pigou, 2017). After the
disbursement of their money, they then conduct a follow up to make sure that the money did not
go into waste and it was utilized to the fullest. For so long the Oman government have been
releasing money for the procurement of different project, and therefore they need to have an
account of how the money has been used. This is to make sure that the money does not go to
waste and it benefits the intended purpose or the intended section of citizens. As a consultant
project manager to the Omani’s public sector project monitoring agency, the following will be a
report on how the government will get a value for their money.
Description of Value for Money
Value for money is a concept that every procurement and project manager considers
during the disbursement of funds to begin a particular project. In the course of executing a
project assignment, project managers make use of value for money techniques to measure the
progress and the performance of the project objectively. VFM is a project management
methodology that project managers use in the procurement process because its methods can be
used to control project costs Tobin, 2016). It can also be instrumental in project forecasting and
the determination of the final results at the end of the project. Some of the elements that are used
Running head: VALUE FOR MONEY
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to expound the term value for money include planned value, earned value, actual cost and budget
at completion and their influence on a project.
The Project Management Body of Knowledge (PMBOK) defines Planned Value (PV) as
the approved budget that is assigned for the accomplishment of a project. PV is the first element
of value for money, and it is essential to procurement management because it can be used to
calculate the Schedule Variance and Schedule Performance Index. Consequently, P.V guides
project managers to work within the assigned budge( Pigou, 2017). During the procurement
process, the project manager should explain the planned value and the different ways the amount
will be put into effect.
The second element of Value for Money is the Actual Cost. AC refers to the total amount
of money that has been spent so far on the project work. PMBOK defines AC as any work that a
manager and his/her team have executed on a project and any costs completed on the project for
a spec...
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