Value for Money (VfM) Assessment Using Fuzzy Logic
Paper (65): Value for Money (VfM) Assessment Using Fuzzy Logic
ABSTRACT: Value for Money (VfM) assessment is the gateway analysis for adopting the Public Private Partnerships (PPPs) route for project delivery. Literature review shows that PPPs have evolved significantly over the past few decades but the VfM assessment has remained unchanged. Throughout the world, practitioners and researchers have voiced their concerns about the limitations of VfM assessment. This research work presents use of Fuzzy Logic (FL) to improve the existing VfM assessment.
FL enables decision makers to assign degrees of truthfulness on the basis of “awareness” of the qualitative and quantitative propositions within the VfM. This helps in getting a single comprehensive VfM assessment result. This approach proves superior to the traditional approach where the VfM components are analyzed separately on the basis of monetary and non-monetary values. A case study analysis of VfM assessment from CALTRANS’ Presidio Parkway Project will be presented.