Value Engineering in Construction Industry of Pakistan

Abstract

Value Engineering is an excellent decision making tool for project management. In construction, value engineering is used, either to increase function at same cost or result in reduction of initial and life cycle cost of a project. It is a multi disciplinary approach with a systematic way of brain storming to focus on function rather than uses of intent of construction. Value engineering has become mandatory in many developed and developing countries alike, once the cost of a project exceeds a certain threshold value. Value Engineering is specially desirable and useful for multi-story high-rise buildings or mega projects involving scores of stakeholders, since such projects require project management to perform at its optimum. Value Engineering proves as a valuable asset of project management on such mega projects, clarifying the scope of project since its inception while safeguarding interests of all stakeholders and encouraging a balance between time, cost and quality. The construction industry of Pakistan is a fast developing sector contributing substantially to national gross domestic product (GDP). The research was aimed at assessing general awareness of value engineering, the extent to which it is practiced, its utility for Pakistan and its hold back factors in the industry. A questionnaire was designed to get responses from respondents working in the industry. An introduction to Value Engineering was made part of questionnaire. A three pronged approach was adopted; i.e. phone calls/e-mails, postal survey and personal visits to gather the maximum responses. A total of 142 respondents, mostly from major cities and mega builders, consultants and clients were involved in the study. Their responses were analyzed using SPSS and descriptive statistics were produced. The technique of the Relative Importance Index was adopted to weigh the opinion of respondents. Results revealed that the level of awareness of value engineering in Pakistan is ‘low,’ the practice of value engineering is also ‘low,’ while utility of this technique for the country is ‘high’. Further analysis revealed that 98% of the respondents want to implement value engineering on their projects while 97 % desire a certified person in value engineering to review their design. Ninety- nine percent of the respondents desire that both value engineering study and value engineering change proposals (which are prepared by the contractor) be incorporated in the contract.