Perceptions and implementations of value management in Malaysian construction industry / Mohd Mazlan Che Mat

The aim of the research was to explore perceptions among G7 contractors registered with the Construction Industry Development Board (CIDB) on the application of VM and VMCP in their projects and the implementation of VM in selected case studies. This study had four main objectives. The first objective was to investigate on the perception of VM and VMCP application in the Malaysian construction industry. The second objective was to assess the application of VM in selected case studies. The third objective was to determine whether there is a need for Incentive Clause to be included in the PWD, CIDB and PAM Form of Contract in the perspective of contractors. The fourth objective was to determine whether the contractor’s intention to share the resultant saving by adopting the VMCP has a significant relationship with the types of organization, year of establishment, number of staff and project turnover. The research was based on the Triangulation approach which linked multiple methods of data collection and analysis that were the exploratory survey, the questionnaire survey, structured interviews, case studies and feedback from VM workshops. From the questionnaire survey, it seemed that most of the contractors were agreed on the VMCP irrespective of their background of company such as types of organisation, year established, number of staff, procurement route, project turnover, major construction business activity and tendering arrangement. The result of the Chi-square test of association concluded that there was a significant association between the intention to share the resultant saving by adopting the VM and the organization’s project turnover. However, the structured interviews revealed that all the 12 contractors agreed to adopt VMCP regardless whether they had or had not heard of the VMCP before because they were interested to share the resultant saving as a result of VMCP. As stated by the contractors, the most important reason they participated in VMCP was not only to eliminate unnecessary costs but to ensure better value for money. In addition, the majority of contractors strongly agreed that VMCP leads to enhancement of competitive advantage. Competitiveness was also chosen by the contractors as the most important impact as a result of adopting VMCP. From that survey, it was confirmed that the inclusion of VMCP in the conditions of contract is essential because most contractors concluded that VMCP is a very interesting methodology that should be adopted by both public and private sectors. The structured interviews further proved this statement.