Study On The Application Of Value Management In Decision-making Of Public Works In China

Public works must be decided scientific because that it has characteristics such as political-related, public welfare, double principal-agent, and its risk and impact is larger than private project too.The decision-making mechanism is not perfect now. Wrong and inefficient decision-making resulted in waste of resources or even irreversible damage, which affected the sustainable development of society. The paper aims to find a scientific decision-making method by the study on the problems of decision-making of public works.Based on the analysis the costs of 80 public works a conclusion was get that the efficiency of public works'decision-making is low. There are 7 issues existing in decision-making of public works is summarized by document retrieval and analyzing. 7 measures are proposed to solve these problems and to improve the decision-making efficiency of the public works, such as diversity of decision-maker and using value management in decision-making.Value Management (VM) is a kind of theory or method that evolves from Value Engineering (VE). It has been widely used in the field of construction after 70 years'evolution abroad. According to the successful experience abroad and the fitting between value management and the diversity of decision—maker this paper proposes to use value management in decision-making of public works in China.It is meaningful to use value management in decision-making of public works in China. The introduction of value management can change the traditional process of decision-making of public works, and it ensuring the professional and scientific of decision-making. Value management provides a platform for the decision-makers because they can debate fully and decide together.Many scholars in this field mentioned that value management should be use in the stage of decision-making in projects in China. But there is no theory formed yet. This paper proposes that value management should be used in the stages of proposal and feasibility report. The core objective of value management in proposal is to verify whether the decision is correct or not and examine the need of the project. The main task of value management in feasibility report is to examine the need and reasonable of the project further. Finally, the framework of applying value management in decision-making of public works in China is proposed according to the process of value management.