Value Management in the Malaysian Construction Industry: Addressing a Theory and Practice Gap

Jaapar, Aini; Zawawi, Mardhiah; Bari, Nor Azmi Ahmad; Ahmad, Norhaiza

doi:10.1016/j.sbspro.2012.02.146

Cited by 16 publications

(12 citation statements)

References 3 publications

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“…Proper value management begins by defining the project plan as well as the key performance indicators (KPIs) of the project: afterwards, objective techniques will be put in place to measure project performance and progress as the tasks are completed. Although many companies decide to devise their own KPIs and measurement techniques, it is possible to follow standard guidelines about defining KPIs in construction sector (Lin et al, 2011;Jaapar et al, 2012;Ponz-Tienda, Pellicer and Yepes, 2012). Moreover, decision support systems are an imperative part of value management systems in construction context (Luo et al, 2011).…”

Section: Adherence To Outdated Construction Methodsmentioning

confidence: 99%

Studying the Reasons for Delay and Cost Overrun in Construction Projects: The Case of Iran

Samarghandi

Mousavi²,

Taabayan³

et al. 2016

JCDC

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2016). Studying the reasons for delay and cost overrun in construction projects: The case of Iran.Abstract: Undesirable delays in construction projects impose excessive costs and precipitate exacerbated durations. Investigating Iran, a developing Middle Eastern country, this paper focuses on the reasons for construction project delays. We conducted several interviews with owners, contractors, consultants, industry experts and regulatory bodies to accurately ascertain specific delay factors. Based on the results of our industry surveys, a statistical model was developed to quantitatively determine each delay factor's importance in construction project management. The statistical model categorises the delay factors under four major classes and determines the most significant delay factors in each class: owner defects, contractor defects, consultant defects and law, regulation and other general defects. The most significant delay factors in the owner defects category are lack of attention to inflation and inefficient budgeting schedule. In the contractor defects category, the most significant delay factors are inaccurate budgeting and resource planning, weak cash flow and inaccurate pricing and bidding. As for the consultant defects delay factors such as inaccurate first draft and inaccuracies in technical documents have the most contribution to the defects. On the other hand, outdated standard mandatory items in cost lists, outdated mandatory terms in contracts and weak governmental budgeting are the most important delay factors in the law, regulation and other general defects. Moreover, regression models demonstrate that a significant difference exists between the initial and final project duration and cost. According to the models, the average delay per year is 5.9 months and the overall cost overrun is 15.4%. Our findings can be useful in at least two ways: first, resolving the root causes of particularly important delay factors would significantly streamline project performance and second, the regression models could assist project managers and companies with revising initial timelines and estimated costs. This study does not consider all types of construction projects in Iran: the scope is limited to certain types of private and publicly funded projects as will be described. The data for this study has been gathered through a detailed questionnaire survey.Hamed Samarghandi et al. 52/PENERBIT UNIVERSITI SAINS MALAYSIAan important role as a major driving force in the growth of several other sectors in the economy, including but not limited to mining and natural resources extraction, transportation and logistics, insurance, consultation and management, and even education and training (Assaf and Al-Hejji, 2006). According to the statistics provided by the Central Bank of Iran, the construction sector has annually absorbed more than USD 13 billion in direct private investments between 2002 and 2014.Unfortunately, construction project delays are very common in Iran. Potentially profitable projects are regrettably tu...

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Section: Adherence To Outdated Construction Methodsmentioning

confidence: 99%

Studying the Reasons for Delay and Cost Overrun in Construction Projects: The Case of Iran

Samarghandi

Mousavi²,

Taabayan³

et al. 2016

JCDC

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“…The need to examine this connection stems from the fact that the characteristics of VM in construction are dependent on the personal aspects of the VM team manifested in terms of communication, interaction, team building, perceptions and conflict resolution (Hwang et al, 2015;Leung et al, 2003). Therefore, the ultimate benefits of VM studies in construction rely on a clear mapping of CSFs and the views ECAM 29,4 and perceptions of practitioners that will eventually influence CSFs (Jaapar et al, 2012;Hwang et al, 2015;Leung et al, 2003). Along these lines, Pansiri and Temtime (2010) linked the personal perceptions and characteristics of managers and firms with the CSFs of the performance of the firms; they found that CSFs statistically depend on the size of a firm, its type and its age.…”

Section: Construction Professionals and Value Managementmentioning

confidence: 99%

“…Alalshikh and Male (2009) found that VM studies in Saudi Arabia can last for more than five days. In the Malaysian construction industry, Jaaper et al (2012) found that the time to conduct a VM study can last for more than a week, however, they claimed that participation in VM can enhance communication among team members and improve the overall understanding of project objectives by analyzing the function of each item in the project. Table 1 summarizes the main perceptions of VM literature used in this research.…”

Section: Literature Reviewmentioning

confidence: 99%

Establishing the synergy between the perceptions of construction professionals and the phases of value management

Thneibat

Al-Tamimi

2021

ECAM

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PurposeThis study aims to lay the groundwork for the potential application of value management (VM) in construction projects. This paper presents a critical review on the status of VM in a developing country and highlights the role of perceptions on critical success factors (CSFs) for the phases of VM studies, as the participants in a VM study should consider CSFs tailored to the local context.Design/methodology/approachA series of interviews and a questionnaire were conducted to understand the drivers, perceptions, barriers, and CSFs of VM in the Jordanian construction industry. Although descriptive statistics were used to analyze the status of VM, a structural equation modeling (SEM) approach was adopted to highlight the interrelationships between perceptions and the CSFs of the three phases of VM (i.e. pre-workshop, workshop, and implementation).FindingsThe descriptive analysis revealed conflicting viewpoints for perceptions and drivers. Most practitioners acknowledged little awareness of VM phases, and the SEM results indicated that perceptions of VM, in terms of its capacity in improving the scope and objectives of the project, and reducing overall costs, most strongly influenced the CSFs of the implementation phase in terms of support and clear plan for implementation, and had the least influence on the pre-workshop phase. Further, the perceptions had a moderate effect on the CSFs of the workshop phase and it tended to be positive, highlighting the importance of function analysis in this phase.Originality/valueThis is the first study to reveal the status of VM in Jordan in terms of adoption, drivers, perceptions, barriers and CSFs; no prior studies have investigated how perceptions can affect the CSFs of each phase of VM and the endorsement of VM by the construction industry. The contributions of this study include linking the perceptions of construction professionals with the CSFs of VM.

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“…In terms of Malaysian construction industry context, there are minimal publications, guidelines, manuals and usage of VM knowledge became as major reasons for reluctance to follow VM approach for the construction projects in the country (Jaapur et al, 2009). Bridging theory-practice gap of VM will provide new insights to enhance understanding of VM implementation in construction industry (Jaapar et al, 2011). In addition, authors stated that bridging the gap will lead to cost savings.…”

Section: Theory and Practice Of Vmmentioning

confidence: 99%

“…The author further emphasised that the best time apply VM concept is at the stage where there is enough room for the planned action or design and sufficient cost information or procedure timetable to pursue realistic alternatives. Although, many researchers have addressed VM concept theoretically with published body of knowledge, there is a lack of VM implementation in construction industry (Jaapar et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

Bridging the theory-practice gap in value management in Sri Lankan construction industry

Mahinkanda¹,

Sandanayake²,

Ekanayake³

2019

Proceedings of the 8th World Construction Symposium

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Construction process is one of the most complex and dynamic procedures. Therefore, it is vital to use resources efficiently and effectively. Considering this requirement of any construction project, creating value for money is becoming important. It contributes to the economic, social and environmental aspects of a country. The concept of value is based on the relationship between satisfying needs, expectations and the resources required to achieve them. Value Management (VM) is recognised as a suitable approach to ensure value for money in construction projects. Although, VM concept is significantly used in developed countries, its applications do not seem to be well established in the construction industry in most of the developing countries including Sri Lanka. This is mainly due to lack of understanding of VM concept. Hence, this study aims to investigate how to bridge the theory-practice gap in VM in Sri Lankan construction industry, through seven case studies. Case study data collection was based on interviews, document review and observations and analysed using content analysis. The research findings revealed that these projects employed different kinds of VM methodologies derived from standard VM methodologies with the focus of various VM objectives. The study further identified number of reasons for theory-practice gap in VM such as lack of a formal guideline and less knowledge on VM, which dilute successful VM implementation. The experts further proposed train in-house VM facilitators, proper project planning, motivate investors, train Sri Lankan professionals by foreign experts and govern VM knowledge sharing as strategies to bridge the gap in order to deliver best value for client's money.

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Value Management in the Malaysian Construction Industry: Addressing a Theory and Practice Gap

Cited by 16 publications

References 3 publications

Studying the Reasons for Delay and Cost Overrun in Construction Projects: The Case of Iran

Studying the Reasons for Delay and Cost Overrun in Construction Projects: The Case of Iran

Establishing the synergy between the perceptions of construction professionals and the phases of value management

Bridging the theory-practice gap in value management in Sri Lankan construction industry

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