Of late, the concept of Value Management (VM) is becoming vital in the implementation of construction projects. Value Management is a systematic and innovative methodology with multi-disciplinary approach targeted to achieve better value of construction products. However, VM is criticized for the fact that it focused solely on value for money, lack of creativity and fails to include the concept of risk management at the early project stage. Therefore, this paper intents to propose a new conceptual framework of Integrated Value Management (IVM) concept as an alternative to VM framework for construction projects in Malaysia. IVM is a combination of three (3) key components namely: Value Engineering (VE), Risk Management (RM) and Partnering to be incorporated in the development of construction projects. The study is purely based on literature review. It reviews the involvement of partnering in a project environment; value engineering approaches to ensure lowering cost while maintaining technical competence; and risk management for risk avoidance to project outcomes. Various models of VM are reviewed across the globe for the development of the framework. The development of an alternative Integrated Value Management framework throughout project phases is expected to give a more value added for both clients and project stakeholders.

Value engineering in the construction industry

An integrated value management (IVM) for construction projects in Malaysia

Facing the necessity to increase their innovative capabilities, organizations are beginning to launch more and more creative projects aiming to introduce radical changes into organizations by exploring new technologies, users, ecosystems or business models. However, the fact of going beyond existing markets and established technologies implies great difficulties and uncertainties for practitioners to manage the value created by such projects. After reviewing the historical development of the two traditional models of value management in project management literature, we show that VM progressively shifts from an evaluation to a design activity. We argue that this shift permits to better embrace the dimensions of creativity and innovation involved in the projects. Drawing on the recent advances in innovation management and design literature, this research investigates the nature of the outputs (i.e. what is the value to be managed?), the ways to manage the value (i.e. how is the value to be managed?), and the beneficiaries (i.e. for whom is the value to be managed?) of creative projects. Based on a longitudinal case study with Renault, we examine how the value is managed in a creative project under Renault’s research program involving the next generation of electric vehicles. We formulate our framework around three main propositions: (1) the value resides in the exploration of the common unknown: in short, the concepts (e.g. new ideas relating to products) and the evaluation criteria that are out of the dominant design scope and for which the CPs team members are interested in (2) the value is designed by managing the distance between the trajectories of the CP and the dominant design (3) the value is beneficial to the emergence of new ecosystems.

Collaborative design of value in creative projects: an expansive value management model

The economic management of construction projects: An evolving methodology

This paper aims to provide organizations with a new tool to make decisions related to a facility (building) selection process. Traditionally, value engineering (VE) applies the Value = Function/Cost formula to evaluate the worth of a product. In this paper, the VE-based facility-selection approach is proposed, where the cost of a facility is expressed in net present value (NPV) as it contains the net expense of purchasing or leasing a building as well as the time value of money. Also, a method of quantifying functions and involved risks of different facility choices is proposed.,The framework of the VE-based facility-selection process is broken down into three steps: preparation, calculation/analysis and assessment. In the latter part of this paper, the authors share a sample analysis by illustrating the analysis and decision-making process when three hypothetical facility-selection options are available.,The sample analysis indicates that companies can get the lowest cost and risk while improving their functions to achieve the highest value by using the modified VE formula to drive an optimal option for company’s business expansion and facility-selection process.,This paper provides organizations with a strategic system and process to select proper facilities or buildings for business expansion. The VE approach suggested in this study can allow facility/real estate portfolio decision-makers to analyze financial and functional aspects of the facility at the same time and obtain the value coefficient when they choose a new facility from different options. Finally, they can select the best option, which has the highest value coefficient, given financial and functional considerations.

Value engineering in the construction industry

Citations

An integrated value management (IVM) for construction projects in Malaysia

Collaborative design of value in creative projects: an expansive value management model

The economic management of construction projects: An evolving methodology

Facility decision making process with modified value engineering approach

How a quantity surveyor in south africa can use building information modeling (bim) to stay relevant in the construction industry

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