Facilitating Building Projects’ Short-Term and Long-Term Value Creation

Abstract

Real estate and buildings are some of facility managers’ most costly resources. Thus, knowledge about how to get the most out of building or renovation projects both in the short term and in the long term are of great importance for facility managers. This paper investigates which factors are most important for building and renovation projects’ output or short-term value creation, and outcome or long-term value creation, i.e., the completed building’s effect for owners and users. Thus, the focus is not primarily financial and the buildings’ asset value. The study is based on a national questionnaire survey in Norway (550 respondents). Multivariate statistics (Principal Component Analysis and Linear Multiple Regressions validated with bootstrapping) were used to test the hypotheses. Short-term project management priorities, such as early involvement of technical contractors and FM providers, contract strategy and involvement of owners and users largely decide the qualities of the building, and thus the potential for long-term value creation. The most important factors for long-term value creation, i.e., buildings that facilitate the demand organisation’s value creation are the qualities of the completed building, project governance and involvement of owners and users during early phase planning.

Keywords

• facility management
• Corporate Real Estate Management
• real estate development
• building projects
• Norway
• project governance