scholarly journals Application of Value Management in Conception of Construction Projects in Rwanda

2019 ◽  
Vol 6 (3) ◽  
pp. 1-6
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Survey Method ◽  
Value Management ◽  
Maximum Output ◽  
Value For Money ◽  
Mandatory Requirement ◽  
Professional Practitioners ◽  
The Cost

Value Management (VM) and Value Engineering (VE) are techniques concerned with defining, maximizing and achieving “value for money”. It should be noted that VM is not about reducing the cost but about adding value and where necessary the cost can be added to achieve value. Despite its proven significance in securing maximum output from limited resources, this approach is not a common practice in Rwanda’s construction Industry. This study therefore defines VM and describes all the processes and techniques involved in it. The merits and demerits of VM process in construction projects are discussed in details and relevance of its uses is discussed and recommended in consideration of the scope and complexity of the projects as well as the risks involved. While the benefits of a value management review are often perceived in terms of improved quality and reduced cost, this report discusses the exercise as a functional mechanism to measure value, taking into account monetary and non-monetary benefits and thus demonstrating value for money. While the author has not been able to obtain relevant literature on VM practice in Rwanda, It can be deduced from the review of the related literature that most of the evaluation techniques conducted for construction projects in developing world have mostly relied on evaluation of project performance in terms of cost, quality, delivery and progress. Since project evaluation is carried out after the work has been undertaken, the output of the analysis will just give the client an indication or a good understanding of the project performance. Such evaluations only reveal the competence or incompetence of the project participants instead of providing value for money which is addressed by VM practice which is an ex-ante analysis that takes into consideration of all value parameters. The study used a quantitative survey method of research to obtain responses from professional practitioners in construction industry in Rwanda. The sample size of 115 were selected from members of professional practitioners in the construction industry out of which 106 members were responsive. Finally, it is concluded that VM approach is not used in construction industry in Rwanda and recommended that VM practice be adopted in construction industry in Rwanda as a mandatory requirement for conception of all construction projects with a budget of $20M and above

scholarly journals Value Management in Practice: An Interview Survey

2012 ◽  
Vol 4 (2) ◽  
pp. 11-18 ◽  
Author(s):  
Therese Daddow ◽  
Martin Skitmore
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Delivery ◽  
Value Management ◽  
Practical Implementation ◽  
Construction Work ◽  
Value For Money ◽  
Extra Time ◽  
Prescriptive Literature ◽  
Interview Survey

Despite its obvious theoretical benefits, there has been some reservations regarding the practical implementation of Value Management (VM) for construction projects. In particular, these concerns the extra time and costs involved in conducting VM in relation to the actual benefits gained as a consequence of its use. This paper provides the result of an interview survey of the experiences and observations of 17 professionals working in the property and construction industry to establish the extent to which this is an issue. The main conclusion is that the process is working well, with VM being popular among those with experience in its use - which has been extended into the area of consultant selection. However, in contrast with the prescriptive literature, much of the participants' experiences appear to be more concerned with VM's contribution to the identification and management of the risks involved in project delivery than the straight value-for-money aspects. This may be due to the higher levels of uncertainty involved in construction work than in VM's original use in construction.

Conceptual framework of value management adoption in the Nigerian construction industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lekan Damilola Ojo ◽  
Deji Rufus Ogunsemi ◽  
Olusola Ogunsina
Keyword(s):  
Conceptual Framework ◽  
Construction Industry ◽  
Construction Projects ◽  
Value Management ◽  
Chi Square ◽  
Content Type ◽  
Construction Market ◽  
Innovative Management ◽  
Coefficient Of Concordance ◽  
Global Construction

Purpose The Nigerian construction industry is bedeviled with poor project performance and outcomes which value management (VM) could address if applied. The application of VM on Nigerian construction projects is very minimal due to certain obstacles, namely, lack of VM experts, paucity of knowledge on the techniques, etc., which inhibits the adoption into the construction industry. Therefore, this study aims to develop a conceptual framework of the adoption of VM on construction projects in a typical developing economy. Design/methodology/approach This study engaged 15 selected VM experts in two rounds of Delphi survey to develop a conceptual framework of VM adoption. The method of data analysis includes mean score, standard deviation, Kendall’s coefficient of concordance, chi-square (χ2) test, interrater agreement analysis and significant level analysis. The developed conceptual framework was sent to a team of local and international VM experts for validation. Findings This study reveals that the adoption of VM requires the collective effort of relevant stakeholders in the construction industry. The framework developed presents individual and collective activities to be undertaken by the stakeholders. The activities include training, legislation, government-funded research, etc. Thus, the adoption of innovative management methodology like VM requires the collaboration of academics, construction professional bodies and government parastatals. This will assist in the judicious use of limited construction resources and boost the relevance of the Nigerian construction industry among developing nations and in the global construction market. Originality/value This study used the opinions of few construction professionals that can be regarded as VM experts in Nigeria, as against engaging a pool of construction professionals who may not be knowledgeable in VM process. Engaging the few VM experts in the Nigerian construction industry is important to have a valid basis for drawing conclusion, as large questionnaire survey could be possibly filled by inexperienced or unqualified respondents if stringent criteria are not considered at the outset of this study.

Critical drivers (CDs) of value management adoption in the Nigerian construction industry

2019 ◽  
Vol 17 (1) ◽  
pp. 250-264 ◽  
Author(s):  
Lekan Damilola Ojo ◽  
Deji Rufus Ogunsemi
Keyword(s):  
Construction Industry ◽  
Delphi Study ◽  
Survey Method ◽  
Value Management ◽  
Chi Square ◽  
Content Type ◽  
Adequate Understanding ◽  
Coefficient Of Concordance ◽  
Concordance Test ◽  
The Common

Purpose This paper aims to assess the drivers of value management (VM) in the Nigerian construction industry with a view to identify the critical ones through Delphi study. Design/methodology/approach A team of 15 carefully selected experts in VM were engaged in two rounds of Delphi survey, and the responses of the survey were analyzed with descriptive statistics (mean, standard deviation and mode). Kendall’s coefficient of concordance test and Chi-square (χ2) test were also used to test the level of consensus amongst the respondents at the two rounds of the survey to draw inference. Interrater agreement analysis and significant level analysis were further used to determine the criticality of critical drivers. Findings The critical drivers to VM adoption are adequate understanding of the benefits of VM, higher/postgraduate programme that teaches VM technique, professional’s previous experience with VM, collaboration of all construction professional bodies in Nigeria and VM training. Originality/value This paper used opinions of VM experts only to achieve the aim of this study as against the common survey method in which respondents who are not knowledgeable in the area of research might fill the questionnaire.

scholarly journals Investigating Rework: Insights from the Malaysian Construction Industry

2021 ◽  
Vol 14 ◽  
pp. 1-9
Author(s):  
Jeffrey Boon Hui Yap ◽  
Shi Min Tan
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Project Performance ◽  
Statistical Techniques ◽  
Cost Overruns ◽  
Delivery Performance ◽  
Communication Design ◽  
Design Changes

Construction practitioners recognise that rework is undesirable due to the detrimental effects. While rework literature has examined rework causation factors in construction projects, the problem continues to plague the industry resulting in poor delivery performance. To better understand this phenomenon and given the scarcity of Malaysian-based rework study, a questionnaire survey involving 130 Malaysian construction practitioners (consultants, contractors and clients) were undertaken to obtain feedback about nature, implications, causes and solutions for rework. Data were analysed using descriptive statistical techniques to prioritise the variables studied. From the analyses, rework is a causal factor for delays and cost overruns, higher wastage and productivity inhibitor. The findings revealed the leading causes of rework are poor quality management, improper planning, lack of communication, design changes and poor subcontractor management. Some practical rework minimisation approaches are also suggested to better manage and prevent rework towards enhanced project performance.

scholarly journals ANALISIS KETERLAMBATAN PROYEK SERTA DAMPAKNYA TERHADAP BIAYA DAN WAKTU PELAKSANAAN PROYEK

2019 ◽  
Vol 5 (1) ◽  
pp. 13-19
Author(s):  
Fitri Nur Kharina ◽  
Kusno Adi Sambowo
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Project Work ◽  
Earned Value ◽  
Time Period ◽  
Review Period ◽  
The Difference ◽  
The Cost ◽  
The Impact

Construction projects in all regions continues to be developed for the creation of facilities that can be utilized by the community. One of them is the construction of apartments which are now being intensively carried out to meet residential needs for the community. Making a construction project plan always refers to estimates that exist at the time development plan is made, therefore problems can arise if there is a discrepancy between the plans that have been made and the actual reality. So the impact that often occurs is the delay in the time of project implementation which can also be accompanied by an increase in the cost of implementing the project. In the construction project of Cinere Terrace Suites Apartemen & Citywalk, Jakarta there was a delay resulting in a late payment of monthly bill progress by the owner. Based on the above reasons, this research was conducted to find out how the project performance was seen from the cost and time period of the review period. how is the estimated cost and time to complete the overall project work. The method used in the analysis of this study is the Earned Value Method. Based on the results of the analysis carried out for 29 weeks the project performance on schedule has been delayed and cost shows a positive value. For the estimated completion time of the project there is an increase in time whose duration increases from the planned 98 weeks or 685 days to 109,624 weeks or 768 days. While the estimated cost of completing the project from the results of the analysis obtained a value of Rp. 270,147,448,569.16 smaller than the planned cost of Rp. 315,272,727,272.73. With the difference VAC of Rp. 45,125,278,703.57 this shows that there are benefits obtained by the contractor.

Exploring influential factors leading to the poor performance of public construction project in Ethiopia using structural equation modelling

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Poor Performance ◽  
Project Performance ◽  
Influential Factors ◽  
Project Design ◽  
Content Type ◽  
Factors Affecting ◽  
Public Construction

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.

CONTRACTS EVALUATION THROUGH CLASSIFIED REWORK ROOT CAUSES IN THE CONSTRUCTION STAGE OF PROJECTS

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Ramin Asadi ◽  
Suzanne Wilkinson ◽  
James Olabode Bamidele Rotimi
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Mitigation Measures ◽  
Rational Approach ◽  
Review Of Literature ◽  
Construction Stage ◽  
Financial Factors ◽  
Resource Material ◽  
The Relationship

Rework occurs across the life cycle of projects and has significant impacts on construction project performance. A rational approach to managing rework is by identifying the main sources of rework; then mitigation measures can be implemented to enhance performance on projects. Rework has been widely studied within the construction industry, but the link between rework and contract conditions remain unexplored. This study identifies and classifies the root causes of rework at the construction stage of projects. It then examines the relationship between the conditions of contracts with the identified root causes. A comprehensive list of rework root causes was determined through the review of literature, which was categorized into five classified factors. The classified factors include process, human resource, material/equipment, technical, and other related environmental and financial factors. The next step comprises a questionnaire survey designed to determine relationships between rework and contracts. The result of the study is presented descriptively for ease of understanding. The results show that rework could be managed more efficiently through contracting processes, which ultimately benefits construction projects’ performance.

Integrated cost and schedule control in the Korean construction industry based on a modified work-packaging model

2008 ◽  
Vol 35 (3) ◽  
pp. 225-235 ◽  
Author(s):  
Sangchul Kim ◽  
Chanjeong Park ◽  
Sangyoub Lee ◽  
Jaeho Son
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Measure ◽  
Domestic Market ◽  
Control Technique ◽  
Schedule Control ◽  
Cost Information ◽  
Integrated Cost ◽  
Ev Model ◽  
The Cost

As a project control technique concept that provides a quantitative measure of schedule and cost information, the earned value (EV) model can evaluate work progress by identifying the potential delay and the cost overruns in a project, which is useful for controlling projects. The construction industry in Korea does not put this concept into practice, however, because it is poorly understood and because the construction practices in Korea are different from those in other industrialized countries. Most important is the fact that almost all the construction projects in Korea are controlled in accordance with the budget breakdown structure (BBS), which is less detailed than the cost breakdown structure (CBS), while those in the USA are managed through schedule control on the basis of the work breakdown structure (WBS). This is because most of the construction projects in Korea are generally contracted at a fixed price. This being the case, once the contract is awarded, the clients are no longer concerned with the cost of the project. This current construction practice based on the BBS rather than on the WBS has brought forth a limitation in terms of the use of the existing EV model in the domestic market. In this study, the EV model, which is suitable for the domestic market, is demonstrated. An integrated model of the WBS and CBS is then developed based on the modified work-packaging model. Finally, the developed model is integrated into the project management system (PMS) to verify its suitability and efficiency.

Analysis of Time and Cost Overrun in Malaysian Construction

2012 ◽  
Vol 452-453 ◽  
pp. 1002-1008 ◽  
Author(s):  
Chidambaram Ramanathan ◽  
Narayanan Sambu Potty ◽  
Arazi B Idrus
Keyword(s):  
Risk Factors ◽  
Time Delay ◽  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Related Question ◽  
Cost Overrun ◽  
Construction Stage ◽  
Theoretical Domain ◽  
Related Group

The construction industry in Malaysia is very important for creating employment, both directly and indirectly. It faces two repeated problems during the construction stage: slippage of project-schedules, i.e. time overrun and overrun of project cost; to the dislike of owners, contractors and consultants. This paper studies the time delay and cost overrun factors for Design and Build D&B projects in Malaysia. A Questionnaire was used to collect data from practitioners and analyse the responses and rank the factors and groups on overall view of the contracting parties. Identified risk factors from the theoretical domain were used to prepare 79 time related question and 18 cost related question categorized in 9 groups and 1 group respectively. Total of 136 respondents recorded their ratings to the factors in the questionnaire. Labour-related group has the top 1 rank with RII 0.684. The results can be used as a guideline to successfully handle construction projects in Malaysia; contributing for better project performance and lead to positive risks, opportunities.

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