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Implementing value management as a decision-making tool in the design

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Mohamad, Saifulnizam and Coffey, Vaughan (2010) Implementing 
value management as a decision­making tool in the design stages 
of design and build construction projects : a methodology for 
improved cost optimization. In: Proceedings of Pacific Association of 
Quantity Surveyors (PAQS) Conference 2010, 23 ‐ 27 July 2010, 
Catalogue from Homo Faber 2007
Sentosa Island, Singapore. 

Copyright 2010 [Please consult the authors]

 Pacific Association of Quantity Surveyors (PAQS 2010) Conference, Sentosa Island, Singapore 

IMPLEMENTING VALUE MANAGEMENT AS A DECISION-

MAKING TOOL IN THE DESIGN STAGES OF DESIGN AND
BUILD CONSTRUCTION PROJECTS: A METHODOLOGY
FOR IMPROVED COST OPTIMIZATION
M.Saifulnizam1 and V.Coffey2
 
1
Post-Graduate Student, School of Urban Development, Faculty of Built Environment and
Engineering, Queensland University of Technology, Australia,
saifulnizam.mohamad@student.qut.edu.au
2
Senior Lecturer, School of Urban Development, Faculty of Built Environment and
Engineering, Queensland University of Technology, Australia, v.coffey@qut.edu.au

ABSTRACT
 

Value Management (VM) has been proven to provide a structured framework, together with
other supporting tools and techniques, that facilitate effective decision-making in many types
of projects, thus achieving ‘best value’ for clients. One of the major success factors of VM in
achieving better project objectives for clients is through the provision of beneficial input by
multi-disciplinary team members being involved in critical decision-making discussions
during the early stage of construction projects. This paper describes a doctoral research
proposal based on the application of VM in design and build construction projects, especially
focussing on the design stage. The research aims to study the effects of implementing VM in
design and build construction projects, in particular how well the methodology addresses
issues related to cost overruns resulting from poor coordination and overlooking of critical
constructability issues amongst team members in construction projects in Malaysia. It is
proposed that through contractors’ early involvement during the design stage, combined with
the use of the VM methodology, particularly as a decision-making tool, better optimization of
construction cost can be achieved, thus promoting more efficient and effective
constructability. The main methods used in this research involve a thorough literature study,
semi-structured interviews, and a survey of major stakeholders, a detailed case study and a
VM workshop and focus group discussions involving construction professionals in order to
explore and possibly develop a framework and a specific methodology for the facilitating
successful application of VM within design and build construction projects.
Keywords: value management, design and build, early contractors’ involvement,
constructability, cost optimization

INTRODUCTION
Value management (VM) has been recognised within the last decade as an emerging
paradigm that focuses on continuously increasing the value provided to the client and is
widely accepted as an important tool in the successful management of construction projects
(Ellis ,Wood and Keel 2005). VM aims at improving the client value system in projects,
products, processes and systems (Kelly ,Male and Graham 2004). The primary aim of this
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doctoral research is to study the effects of implementing VM in design and build construction
projects in particular, addressing design issues that directly relate to cost optimisation of
construction projects in Malaysia.

The research in the area of VM has matured over the time and there has been substantial
research into the application of VM within the construction industry over the last few
decades. According to Bowen et al. (2009) previous research addressed issues such as use of
VM in construction (Dell'Isola 1982; Kelly and Male 1993; Connaughton and Green 1996;
Kelly ,Male and Graham 2004); best practice and benchmarking (Male et al. 1998); VM for
managing the project briefing and design processes (Yu et al. 2005); VM methodologies and
techniques (Dell'Isola 1982; Zimmerman and Hart 1982),VM in strategic development of
infrastructure (Barton and Knott 1996; Che'Mat 2006);VM performance measures (Lin and
Shen 2007); relationship between VM and quantity surveying (Ellis ,Wood and Keel 2005;
Hogg 1999); integration of risk and VM (Dallas 2006; Afila and Smith 2007); group decision
support systems (Fan ,Shen and Kelly 2008), group dynamics in VM (Leung 2003), the
implementation of VM in the public sector projects(Kelly and Male 1999), global
development of VM client value systems (Kelly 2007), VM in alternative dispute resolution
(Tanenbaum 2004);and hard versus soft VM (Green and Liu 2007).
Further to this, successful VM application has been reported in many cases on construction
projects and according to Cheah and Ting (2005), the practice of VM embraces other tools
and techniques such as the structured job plans, the Functional Analysis Systems Technique
(FAST) (Kaufman 1990), Simple Multi Attribute Rating Technique (SMART) (Green 1994)
and even methods to nurture creative thinking (i.e. Delphi Method). The application of
various VM tools provides for different industrial contexts such as in, transportation systems
design (Wilson 2006), health care procurement (Ghosh 2003), waste management (Parikh
2005), space management (Che'Mat and Shah 2006), risk management in construction
projects (Dallas 2006; Chang and Liou 2005), design and build bid proposals (Kolano and
Vohra 2006), alternative dispute resolution (Tanenbaum 2004) and sustainability of
construction projects (Zainul Abidin and Pasquire 2007). The somewhat generic nature of
VM makes it applicable to many types of projects ranging from buildings to water treatment
works (Cheah and Ting 2005). Moreover, it also suggested that implementing VM at the
corporate level for tasks such as strategic decision-making (Che'Mat 2002) , quality
management (Teck 2003; Wixson 2005) and other systematic contexts are providing bright
prospects for the VM discipline and its practitioners in future.
This noted, only a small minority of research to date has focussed extensively on examining
the application of VM in specific construction procurement systems. The research reported
here describes the potential for developing a framework to facilitate the application of VM in
design and build construction projects within the context of the Malaysian construction
industry. The study will focus on VM application in the design stage of a construction project
and in examining the contribution of contractors’ early involvement to more effective and
efficient constructability, which in turn leads to greater cost optimization. This paper
commences with a background review of VM and design and build, followed by description
of the survey design and research framework. The methodology and expected outcomes of
research are discussed as is the significance of the research.

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LITERATURE REVIEW

Value management (VM) in the design process

VM is a service that takes place at the front end of a project where the primary emphasis is on
making explicit the client’s value system through the use of functional analysis and other
problem solving tools (Kelly and Male 1993). It has been recognized as one of the most
effective methodologies for achieving “best value-for-money” for clients since its
introduction into the construction industry in the early 1960’s (Shen and Liu 2003). The
evolution from the manufacturing industry, which initiated Value Analysis (VA) in 1940’s,
and first applied in the construction industry in 1963 (Dell'Isola 1982) has attracted interest
from many sectors of the construction industry across the world (Fong and Shen 2000). The
UK has already seen a substantial growth in the development and practice of VM, mainly in
the construction industry, since the introduction of VE to the UK in the 1980s. As reported by
Shen (1995), in 1988 RICS published "A Study of Value Management and Quantity
Surveying Practice", by Kelly and Male, which illustrated the practice as used in North
America, and proposed the benefits and potential of using VM in the UK, particularly to the
quantity surveying (QS) profession. The publication marked the beginning of the serious
development of VM as a tool to be used in the construction industry to achieve better value
for money.

According to Kelly et al (2004), VM is distinguished from other management processes by

three primary core elements: i) establishment of a value system; ii) building a team-based
process iii) use of functional analysis to promote in-depth understanding. These core
elements provide a holistic approach to reviewing and solving construction project issues
through a more systematic approach. Ashworth (2004) claims that the main purpose of VM is
to reduce unnecessary costs as projects can be designed and constructed in many different
ways And each different design attracts particular costs. Where two different designs satisfy
the main client requirements, then the difference between the costs of these designs can be
described as an unnecessary cost. However, Kelly and Male (1991) argued that the total
economic management of projects involves considering both cost and value. The latter
encompasses cost but also takes account of the subjective decision making criteria of the
client organization in perceiving what are acceptable levels of project performance and
technical specification. Eliminating unnecessary cost alone does not contribute to the entire
goal of VM which is the achievement of better value for money.

Within the context of early design, VM is perceived primarily as an aid to the briefing
process rather than a technique of cost reduction (Kelly et al. 2004). The design process is
perceived as a never-ending cycle of action research which continues until designers run out
of time. Design is therefore a learning process comprising endless cycles of planning, action
and evaluation of all aspects that require consideration. The activities of briefing, designing,
constructing and post-occupancy evaluation contain many such cycles within themselves.

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Green (1994) stresses that VM makes no pretence in finding optimal answers; however it
concerned with establishing a common decision framework around which the design team
can think and communicate. Constructing a shared perceived reality is the key driving factor
in VM which is oriented through team-based approach in design. As a project progresses, the
client and stakeholder involvement changes from making strategic decisions, to undertaking
routine, operational project decisions. Their roles are typically reduced to agreeing the design
decisions of their professional project team. The relevance of VM in involving stakeholders
in all design decisions therefore diminishes with project progression. This further transfers
the design decision to the professional consultants solving technical problems which requires
the combined effort of the multi-disciplinary team.

In relation to solving problems in design, Green (1994) advances the idea of ‘hard’ versus
‘soft’ systems thinking, where the former is predominantly concerned with the identification
of optimum solutions to known technical problems, whilst the latter is concerned with
determining multi-perspective human problem situations. The combination of both types of
systems thinking is crucial in delivering a building which serves not only the client
requirements but also those of the end–user. Although it may be argued that one type of
systems thinking is more important than the other, the underlying principle at stake lies in
defining what the actual project function is to be by the end of the day. Therefore, VM is used
to develop a common understanding of the design problem, to specify the design objectives
and to synthesize a team consensus about comparative methods and alternative courses of
action based on the problem identification (Green 1999; Leung and Liu 1998; Liu and Leung
2002 as cited in Leung 2003). The inclusion of multi-disciplinary teams in VM studies
provides a strong foundation for clearly defining design issues that address or involve
construction cost optimization. It ensures that the decisions made are balanced, explicit and
accountable. Leung (2003) has further suggested that participation of all team members is an
important element of the construction project in terms of assisting experts in getting the best
value for the project. Participation leads to commitment, which in turn leads to ownership.
The spirit of ownership is fundamental in this research which forwards the idea of greater
contractor involvement during the design stage to assist in cost optimization. The role of
contractor is perceived to contribute greater opportunities for cost optimization through
transfer of shared knowledge of construction technology during the design stage of a project.
This idea further extends the work of Green (1997) and Fan and Shen (2010) on the use of
group-decision support systems in VM which examines the potential contribution made by
the contractor as part of the team.

Value Management in Malaysia

The concept and application of VM do not seem to be so well embraced in the Southeast
Asian construction industry (Cheah and Ting 2005). In Malaysia, VM was first introduced in
1986 and despite some benefits being observed as a result of its application, VM has not yet
become widely practiced in the Malaysia (Jaapar and Torrance 2005; Jaapar 2006).
According to Jaapar et al. (2006), a knowledge gap exists between the current development
and application of VM in the Malaysian construction industry as compared to other
developed countries using VM. It is posited that this is largely due to the lack of knowledge
and regular practice of VM, and also to a resistance to change by the parties involved during
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VM workshops (Jaapar and Torrence 2006). A preliminary literature review has indicated
((Jaapar and Ismail 2001; Jaapar ,Torrence and F.Yusuf 2006; Teck 2003; Tan 2005; Che'Mat
and Shah 2006; Tek 2004; Ghani 2004) that some client organisations in Malaysia have been
applying certain aspects of the VM methodology and concepts in their project operations,
however due to some unsuccessful outcomes, the take up of VM practices in Malaysia has
not been large (Jaapar et al. 2009). Despite some resistance to applying VM due to lack of
knowledge and stories of past experience by clients, nevertheless, the construction industry
professionals acknowledged that VM contributes to the achievement of value for money.
Based on a study conducted by Jaapar et al. (2009), there is a positive future for VM within
the Malaysian construction industry as professionals from various segments of the industry
now appear ready to implement VM applications in their future projects.

The level of awareness and appreciation of VM as an essential toolset for providing better
value has developed over time since the inception of this study to the extent that the Institute
of Value Management Malaysia (IVMM) was established in 2000 with help and
encouragement from Government agencies such as the Professional Services and
Development Corporation (PSDC). The latter agency has initiated great efforts to promote
and provide training courses in VM within the construction industry. This continuous
initiative has opened new opportunities for VM to be accepted into companies at a senior
management level. The recently issued Government circular “Value Management Guideline
Circular 3/2009” authored by the Economic Planning Unit of the Prime Minister’s
Department mandates that for every construction project valued at more than RM 50 million,
a VM study is required to be undertaken (Economic Planning Unit Malaysia 2009), This
marks the beginning of a new paradigm for VM in the Malaysian construction industry,
which is expected to allow for more potential areas of VM to be developed and introduced
into the sector.

Value Management and Design and Build

Numerous studies suggested that VM is highly effective in the early planning stages of a
project as well as during other stages of design and construction (Hunter and Kelly 1998) and
this supports the idea of a potential existing for greater cost savings to be identified by teams
of designers and builders. The strategy promotes more effective and efficient constructability
of a project due to the input to the design from the building contractor which allows them to
inject their own capability, capacity and available technology into the upstream decision-
making, plus it sets a foundation for speedier project delivery due to the beneficial overlaps
between design and construction. Uhlik and Lores (1998) cited in (Song ,Mohamed and Rizk
2009), found that design and build and construction management contracts facilitate the
integration of general contractor’s knowledge into the design and they conclude that early
involvement of contractors in construction projects is highly recommended.

The involvement of contractors at the early stage of projects is seen as providing greater
opportunity to enhance the project by way of allowing construction knowledge to be input by
the contractor at this critical juncture. An absence of contractor expertise may result in over-
emphasis on the building design, and a failure to properly consider the practicalities of
construction (Bowen et al. 2009). According to Song et al. (2009), there are several distinct
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advantages to contractors having early involvement in construction projects which are

follows:

i. Contractors have a higher level of construction expertise due to specialist training and
an in-depth knowledge of construction materials, methods and local practices;
ii. Contractors can provide project and contractor specific information on the availability
and limitations in term of cost, performance, access and site conditions and this is
needed to support design;
iii. It is the contractors who are responsible for the actual construction operations,
therefore, their input has direct impact on the performance of the project; and,
iv. Continuous involvement from the design stage promotes opportunities to influence
project costs, which in turn gives time for better quality of construction planning.

In addressing problems which exist in design and build, a study by Akintoye (1994) on the
reduction in overall project costs using design and build procurement, has suggested that the
use of VM as an alternative method used for solving engineering problems, leads to early cost
appraisal of a more efficient plan layout and selection of alternative materials and
establishment of best methods of construction by the contractor. This is also supported by
Lam et al. (2008) who observes that the inclusion of innovative management approaches at
an early project stage (i.e. Value Management) contributes one of the major success factors
found in design and build projects. Cheng (1995) in Lam et al. (2008) has reported that VM
has been carried out in design and build projects to eliminate unnecessary costs without
additional expenditure through the benefits realizes through extensive teamwork at the early
stage of a project where project participants meet together with the aim of optimizing cost of
that project.
A study conducted by Akintoye (1994) on contractors’ views on design and build highlighted
that the factors most significant to reducing the overall project cost which the application of
VM assisted in identifying are: (i) alternative solutions to engineering problems (ii) early cost
appraisal of efficiency of plan layouts and (iii) selection of alternative materials and methods
of construction.
It appears that the integration of the design and construction stages does offer flexibility to
the project which makes design and build an ideal contract arrangement for projects to better
meet client objectives. There are nonetheless setbacks and issues faced by design and build
which need to be taken into consideration. According to Chan et al. (2005), the end product
of design and build projects can be uninteresting and dull, since the designer’s creativity can
be stifled because of interference from builders (due to the leading, and equal role given to
them) in the design. This problems exists when there is separation of design roles and overall
design management (Love ,Skitmore and Earl 1998), dispute of design responsibility (Chan
and Chan, 2000, in Chan et al, 2005) and inheritance of design errors (Ng and Skitmore
2002). Therefore, contractor’s early involvement in VM is expected to provide a solution to
these issues.
Throughout the literature, the combination of design and management functions in design and
build projects has often been highlighted as a central issue which impedes the pursuit of
success in construction projects. This means that any failure in coordinating management,
design and construction among various parties can seriously affect the achieving of the
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client’s objectives. The effect of such failure often leads to a longer time being spent to
complete the project, poor end-quality and cost overruns. According to a case study
conducted by Panciuk (2009), there is a high risk of the cost of the construction ‘blowing-up’
if activities such as design coordination, contingency recommendation and the contractor not
being provided with complete information, in particular drawings, are not properly managed
during the early design stage of a project.

Ashworth and Hogg (2000) pointed out that VM has been recognized as a factor that is
critical to the success of projects. Most VM currently practiced in the industry focuses on the
design development and improvement to the functions of the project. Green (1997) stated that
VM provides a ‘second look’ at design decisions which have been taken in response to a
projected cost overspend. It focuses on value rather than cost and seeks to achieve an optimal
balance between time, cost and quality as it provides a method of integration in the building
process that no other management structure in construction can provide (Kelly ,Morledge and
Wilkinson 2002).
The literature appears to indicate the fact that a weakness exists in design and build systems,
particularly related to coordination during the design stage of a project where the contractors’
early involvement is expected to influence the more effective achievement of project
objectives. It is this aforementioned discussion that has raised several research questions that
need to be examined as follows;
i. How do decisions made during design stage of construction projects adopting a design
and build strategy succeed in achieving client’s objectives in terms of meeting
approved cost budgets?
ii. What are the critical issues involved during the design stage of projects which often
lead to final costs exceeding budgets?
iii. How does the application of VM (with the inclusion of contractors’ inputs during
design stage) assist in addressing issues pertaining to cost optimization and value-
adding to client’s existing requirements?

Based on these research questions, the main research objectives can be established, which
will later drive the research process and these are:

1. To identify the decision-making process performed by the design team and contractors
during design stage;
2. To identify constraints faced by design teams and contractors in developing design that
fully meet client’s requirements;
3. To study the contractor perceptions of how, or if, VM applied during the design stage
(‘upstream’), facilitates better ultimate buildability during construction (‘downstream’);
and,
4. To examine the potential savings generated from VM intervention during the design
stage, especially when applied with inclusion of contractors’ inputs.

METHODOLOGY

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The purpose of the study on which this paper is based to assess and investigate the
application of VM theory, and how this rolls out in practice within the Malaysian
construction context, particularly in design and build projects. The research will adopt a mix
of quantitative and qualitative methodologies, however a qualitative approach will be the
dominant method used for conducting the study; specifically using a case study, conducting
focus group sessions and development of a VM workshop approach specifically directed at
the typical prevailing situation in the Malaysian construction industry. Rouse and Dick
(1994) have suggested that qualitative research techniques are needed to capture holistic real-
world answers to real-world problems in a way that is not possible using quantitative
methods. The case study will be used to test the efficacy and impact of implementing VM
during the design stage of construction projects, with contractors’ early involvement, i.e. can
this assist in value-adding and cost optimization. It is anticipated that this approach will
generate rich data for further analysis relating to the experiences and practices of VM among
construction teams in the Malaysian setting. The focus group and workshop are aimed at
validating findings from the case study and as a platform for a ‘Knowledge Bridge’ between
the theoretical and practical views. Some basic quantitative methods will be applied in
reviewing survey data obtained from the application of the VM framework and for setting
criteria for the case study selection. In this research, the literature review will be used to
explore the principles, application, criteria and theories of VM that address issues related to
design management and coordination of processes and stakeholders in design and build
projects.

The main research on which this paper is based encompasses a study and discussion of the
philosophy and phenomenon of VM, design management constraints, decision-making,
project team operation, life cycle costing and client value systems. It will integrate these
issues in order to identify and focus on the potential benefits of using VM as a tool that
facilitates decision-making related to cost optimization and value-adding in construction
projects. The organization of the research has been divided into four stages (Figure 1) which
are as follows.

RESEARCH PROBLEMS

STAGE 1 Literature Research Pilot

Survey

STAGE 2

CASE STUDY

STAGE 3 Based on results from

Interviews Survey
stage 1 & 2

ANALYSIS

STAGE 4
Workshop Based on results stage
8  from 1 - 3
Draft VM Framework
 

Focus Group
 Pacific Association of Quantity Surveyors (PAQS 2010) Conference, Sentosa Island, Singapore 

Figure 1: Research Process

Stage 1: Literature Review

An extensive and detailed literature review will be conducted with the aims of obtaining
information pertaining to the current development of VM in the Malaysian construction
industry, the perspectives from various industry ‘players’ on the implementation of VM at
project level, and also on design management issues together with reported case studies.
Furthermore the review will examine typical design and build activities focusing on the
project design stage, methods used for decision-making and the methods for resolving
conflicting design issues, buildability and the roles played by various parties involved with
the design and construction processes. The primary objective of the literature review is to
obtain a current picture of the status of strategic and operational VM application in the design
development stage of the typical design and build project. A pilot survey will be undertaken
in order to obtain preliminary data on the current status of the application of VM in various
types of construction project and specifically in design and build procurements. The literature
review, together with a corroborative interview with an acknowledged expert in the field, will
be used to formulate a set of criteria which will be examined further in a series of semi-
structured interviews.

Stage 2: Case Study

Investigation using a case study approach is a strategy directed at researching an
experimental theory, or a topic, using sets of procedures comprised of several different
combinations of data collection such as interviews, surveys and documentary evidence,
where the emphasis is placed on investigating a phenomenon within a context (Fellows and
Liu, 2003, cited in (Knight and Ruddock 2008)). An exploratory case study will be used for
this research in order to investigate a contemporary phenomenon in-depth and within its real
life context, especially when the boundaries between phenomenon and context are not clearly
evident (hence the term ‘exploratory’) (Yin 2009). In this case, the focus of the exploratory
case study is the implementation of VM during the project design stage. The case study will
investigate and capture the situation/activities involved during the decision-making process of
a typical design and build project design stage. The capturing of information at this stage will
further identify the strategies used and constraints faced, by the project team in meeting their
targeted project cost. An examination of archival records such as correspondence, minutes of
meetings; drawings; Bills of Quantities (BQ) and other transmittals will be examined in order
to identify the various processes and activities involved during the project design stage that
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have an impact on, or are relevant to decision-making, cost optimization and buildability.
This review of documentation will attempt to identify the patterns of behaviour of the project
team members in design decision-making process and the constraints faced in meeting
client’s requirements. Understanding the behaviour and culture that exists within the
working-team organisation will allow for codification of the roles played by each team
member and how their behaviour and attitudes can ultimately influence the cost and
buildability of the project. The unit of analysis for this research variable will be the savings
generated as a direct result of applying the VM study. A multiple case study design is
proposed where the sub-units of analysis or variables will comprise of the team of
professionals and stakeholders involved in the project, i.e., architects, engineers, quantity
surveyors, contractors/sub-contractors and the client. The overall efficacy and reliability of
this method is dependent on the comprehensiveness of the information retrieved from the
archival records of the project selected. Past studies have indicated that the implementation of
VM at an early stage of projects provides opportunities for greater savings in construction
project costs (Barton and Knott 1996; Dell'Isola 1982; Kelly ,Male and Graham 2004; Hunter
and Kelly 1998; Che'Mat 2002; Dallas 2006)and so a multiple case study has been selected
for the main research as it is focused on testing a well- formulated theory (Yin 2009) related
to the application of VM during the design stage of a construction project.
Design and build construction projects initiated by the private sector is selected as samples
for case study. The selection of case is made based on projects which have succeeded and fall
short to achieve the project objective (i.e. cost) and have not experienced any VM study. The
combination of both selections aimed at establishing a comparative result on the potential
application of VM which will better amplify the findings of the study. Case selection will be
shortlisted on a set of criteria based on aspects drawn from the pilot survey. The private
sector client’s organizations chosen will be those which initiate or promote construction
projects that are listed on the Bursa Malaysia which is the largest referral bourse in Asia for
business investments. The most typical (or most data-rich) that fulfil the short listing criteria
will be selected for the case study with the aim of identifying the major operational activities
associated with design stage, problems encountered, scope of work involved, decision-
making processes being applied, construction cost optimisation techniques used and value-
added initiatives identified for the client. The outcome of this phase of the research is
intended to explore areas such as the overall use and practices of VM in the construction
sector, the impact of strategic stage in which the study is focused on cost optimization
opportunities (i.e. the detailed design stage), involvement and contribution of various
involved professionals, savings gained (whilst still complying with client’s objectives of cost
optimization), and the designer’s value-adding ambitions.

Stage 3: Interviews and Survey

The survey and subsequent interviews are intended to obtain information from practitioners
and experts with regard to the practice of design management during the project design stage
and to capture their views on any potential benefits and constraints of VM when used in the
design stage of design and build (or other procurement based) construction projects. The
focus of this stage of the research is in specifically achieving objectives 2, 3 and 4 of the
research as stated earlier in this paper, and the study will be conducted using two main
methods, firstly, a series of semi-structured interviews will be undertaken with selected
project team members from the case study projects consisting of engineers, architects and
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representatives from the client’s organization, project managers, quantity surveyors and
contractors/sub-contractors. Secondly, a survey questionnaire will be distributed amongst
identified practitioners in the VM sector based on a list obtained from the Institute of Value
Management Malaysia (IVMM). The IVMM database contains the names and addresses of
130 registered members all actively practicing in the VM field. The expected outcomes from
the exploratory study are to bring out the current development status of VM in Malaysia in
terms of its acceptance level by relevant industry players, the current understanding of the
problems associated with design development, cost optimization activities related specifically
to project design stage and the potential opportunities for better achieving client’s objectives
using a VM approach.

Stage 4: VM Workshop and Focus Group Discussion

The VM workshop and focus group discussion are proposed for the final stage of the study in
order to further examine the potential savings and value-additions that are available and yet to
be applied in the case study projects. The workshop and focus group discussion will be
primarily aimed at validating the findings obtained from the literature review, the case study
and the interviews. Subsequently it is also aimed at obtaining ideas and contributions through
discussion of relevant issues. A ‘panel’ of international experts in the VM field will be jointly
invited to participate in a ‘virtual’ focus group discussion of the findings via Windows Live
Messenger (ninemsn Pty Ltd 2010). The findings through the use of this method are expected
to address all of the research questions thus indicating whether or not implementation of VM
in design and build construction projects (particularly using contractors’ input at the project
design stage) can really enhance the construction cost optimization, more fully achieve
project objectives, improve buildability and provide more value-additions for the client.

Significance of the Research

The findings from the research represented in this paper are expected to be significant in
further contributing to the current pool of academic knowledge of VM effectiveness and use
and to advance the previous research conducted, integrating and lodging it specifically within
the construction and the private sectors, in a Malaysian context. The investigation and study
of the application of VM theory and methodologies on actual construction projects using
design and build procurement will enrich the extant literature with a contemporary viewpoint
based on robust research on the benefits of VM implementaion in achieving cost optimization
on, and adding value to, construction projects. It is anticipated that the findings of this
research could offer a framework for professionals and clients in the private sector to better
understand the constraints of, and strategies needed to implement, VM in their future
projects. A further benefit of the research is to offer the chance for a paradigm shift forward
for contractors to significantly improve all aspects of project outcomes for clients through
their early involvement in the project design stage and through the use of VM, specifically in
the Malaysian context.

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