Project Value Stream (PVS) - The Extended View

The degree to which contractors understand and fully integrate their Project Value Stream (PVS) internally and externally determines their ability to grow sustainably and profitably.

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The internal Project Value Stream (PVS) is part of the Contractor Business Model starting with Prospect-to-Opportunity through to Project Exit. Improving operations internally is about:

  1. Continually improving with each new relationship, opportunity, and project. This includes progressively developing greater levels of standards.
  2. Identifying the key bottlenecks and the constraint in the flow from opportunities and opportunity evaluation through to project exit, then applying focused resources to eliminate them.
  3. Making appropriate changes to the management systems and organizational structure based on growth. Even though these are the basic functions that happen from a stage one contractors starting up through to a stage six-plus contractor, how they are done is different at each stage including levels of specialization in responsibilities.


As contractors grow into stage four and above, it becomes increasingly more important for them to understand the Extended Project Value Stream. 

  • Upstream: Understanding the Project Value Stream from the perspective of the customer and customer-once-removed. Remember that the building or infrastructure you are building is just one piece of the how the project owner serves their customers.
  • Downstream: Understanding the Project Value Stream from the perspective of your suppliers and subcontractors as well as their suppliers and manufacturers. 

This understanding will help you make better strategic market choices and improve your supply chain

Just being able to see the Key Bottlenecks and Constraint from their perspective will help you build the relationship and negotiate better because you will understand what matters most to them. 


Advanced Tip: If you can bring solutions to minimize or eliminate the bottlenecks or constraint for the customer and/or customer-once-removed, you will become the obvious choice. 

  • How can you help with project design - from the perspective of what matters to the customers the project owner is working to serve?
  • How can you help with site selection?
  • How can you help with permitting?
  • How can you help with financing?



Related Training

Resource - Negotiation (3 Prerequisites + 4 Perspectives)
Negotiation skills will enhance nearly everything your management teams do from winning work through building the project to working with your bank and surety. This is a collection of the best resources we've used to build these capabilities.
Contractor Business Model: Evolution with Stages of Growth
As a contractor navigates the different stages of growth, the complexity of their business model evolves, including their organizational structure, management systems, and people. Seeing this model visually helps identify bottlenecks and constraints.
Evolution of Project Delivery Methods
Project delivery methods for contractors will become increasingly more integrated from project owner through all key parts of the supply chain, which is a return to models used in the early 1900s with some modernization improvements.