The BEDP strongly supports the argument that the design of urban environments has a financial and societal value that impacts directly on national and community wealth.
An innovative approach is required in Australia, to encourage built investment design decisions based on value rather than on cost alone.
The Commission for Architecture and the Built Environment (CABE) (London UK)1 has published material outlining steps that can be taken to identify, capture and deliver value through the procurement process.
These include establishing a value-based policy for design; using value rather than cost when making the business case; running value management workshops to establish priorities; briefing contractors about concerns for high quality design and delivering value; asking contractors to use an evidence-based design process; reviewing completed projects to get feedback and assess what works and using the results in future projects.
CABE identifies six types of value for building and construction developments.
Exchange value: The value of a commodity to be traded, the commercial value of which is measured by the market price. For the owner this is the book value and for the developer it is the return on capital and profitability. It covers ease of letting and disposability. Exchange value measures include book value, return on capital and rental yield.
Use value: contribution to organisational outcomes including productivity, profitability, competitiveness and repeat business. This arises from a safe working environment that promotes staff health and well-being and job satisfaction - and encourages flexible work patterns, teamwork and communication. Use value measures include productivity and profitability, healthcare recovery rates, retail footfall, academic results and occupant satisfaction.
Image value: contribution to corporate identity, prestige, vision and reputation, demonstrating commitment to design excellence or innovation, openness or brand image. Image value measures include public relations opportunities, brand awareness and prestige, recognition and the ‘wow’ factors.
Social value: the making of connections between people, creating or enhancing opportunities for positive social interaction, reinforcing social identity and civic pride, encouraging social inclusion and contributing towards to improved social health, prosperity, morale, goodwill, neighbourly behaviour, safety and security, while reducing vandalism and crime. Measures include place making, sense of community, civic pride and neighbourly behaviour, as well as reduced crime and vandalism.
Environmental value: the added value arising from a concern for inter-generational equity, the protection of biodiversity and the precautionary principle in relation to consumption of finite resources and climate change. The principles include adaptability and/or flexibility, robustness and low maintenance and the application of a whole-life cost approach. The immediate benefits are to local health and pollution. This is measured by environmental impact, whole-life value and ecological footprint.
Cultural value: contribution to the rich tapestry of a town or city, how it relates to its location and context, and also to broader patterns of historical development and a sense of place. Cultural value may include consideration of highly intangible issues like symbolism, inspiration and aesthetics. Measures include critical opinions and reviews and press coverage.
Design Value
To focus attention on the potential value that can be generated in the design of urban environments, the BEDP has adopted the expression “Design Value” as the key concept to measure comparative performance of urban design solutions.
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Design Value is a term that expresses the worth of the built asset created by the design process throughout the lifecycle.
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Design Value is created through the enhancement of client objectives while enriching community, environmental, economic and market factors.
- Design Value is connected to the creative practices, policies and actions provided by the parties working in concert to provide quality design outcomes.
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Design Value and the resultant Value is seen as a multiplier in delivering the worth associated with economic, social and environmental outcomes.
1. The Value Handbook. Commission for Architecture and the Built Environment (London, UK), 2006.
