Application of Value Management to Real Estate Project Planning

Value Management (VM) has proved to be one of the most effective methodologies to increase benefits as regards a given investment. However, VM is still not successfully applied to construction industry in China. This paper, based on value management approach and relevant theories like customer relationship management and core competence management, introduces a framework for real estate developers to apply value management to their project planning. Through a case study the paper illustrates how VM concept can be adopted in real estate investment. It is believed by the authors that adoption of value management in real estate project planning will bring with more benefits for both the developers and the customers.