Value Engineering in Construction as Synthesis of Methodology of Investment Flows Management and Price Formation

Abstract

Due to modern worldwide practice and investment construction and price formation analysis the necessity of application of value engineering methods is becoming as never justified at all the hierarchy levels of construction. The purpose of the work is to get a theoretical base of value engineering, which means to work out some quality model of running an investment-construction project cost-effectively, corresponding to the internal and external influences on the investment-construction activity and ensuring the ideals of the sustainability through the balance of the investment flows in the investment-construction field. Literature sources analysis are carried out to implement the goal. Methods of the system analysis and management, comparison, expert evaluation are used. Sufficient methodical base is presented in the article. The investment-construction structure is described with modern scientists’ works, the connections and correlations between the planning, financing and pricing subsystems are presented, the influence of these subsystems on the building construction subsystem is set out in the article. The investment flows are described through the structure and developed balance of the investment flows in the investment-construction field with a mathematical model. In the conclusion the necessity of application of the value engineering methods in the investment-construction field is justified and a mathematical model of synthesis of price formation and investment flows management, which is considered a theoretical base of value engineering, is formed.