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IMPLEMENTING VALUE MANAGEMENT AS A DECISION-

MAKING TOOL IN THE DESIGN STAGES OF DESIGN AND


BUILD CONSTRUCTION PRO1ECTS: A METHODOLOGY
FOR IMPROVED COST OPTIMIZATION
M.Saifulni:am
1
and J.Coffev
2


1
PhD Candidate, School of Urban Development, Facultv of Built Environment and
Engineering Queensland Universitv of Technologv, Australia,
saifulni:am.mohamadstudent.qut.edu.au
2
Senior Lecturer, School of Urban Development, Facultv of Built Environment and
Engineering Queensland Universitv of Technologv, Australia, v.coffevqut.edu.au

ABSTRACT

Value Management (VM) has been proven to provide a structured Iramework, together with
other supporting tools and techniques, that Iacilitate eIIective decision-making in many types
oI projects, thus achieving best value` Ior clients. One oI the major success Iactors oI VM in
achieving better project objectives Ior clients is through the provision oI beneIicial input by
multi-disciplinary team members being involved in critical decision-making discussions
during the early stage oI construction projects. This paper describes a doctoral research
proposal based on the application oI VM in design and build construction projects, especially
Iocussing on the design stage. The research aims to study the eIIects oI implementing VM in
design and build construction projects, in particular how well the methodology addresses
issues related to cost overruns resulting Irom poor coordination and overlooking oI 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 oI the VM methodology, particularly as a decision-making tool, better optimization oI
construction cost can be achieved, thus promoting more eIIicient and eIIective
constructability. The main methods used in this research involve a thorough literature study,
semi-structured interviews, and a survey oI major stakeholders, a detailed case study and a
VM workshop and Iocus group discussions involving construction proIessionals in order to
explore and possibly develop a Iramework and a speciIic methodology Ior the Iacilitating
successIul application oI 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 Iocuses on continuously increasing the value provided to the client and is
widely accepted as an important tool in the successIul management oI construction projects
(Ellis et al., 2005). VM aims at improving the client value system in projects, products,
processes and systems (Kelly et al., 2004). The primary aim oI this doctoral research is to
study the eIIects oI implementing VM in design and build construction projects in particular,
addressing design issues that directly relate to cost optimisation oI construction projects in
Malaysia.

The research in the area oI VM has matured over the time and there has been substantial
research into the application oI VM within the construction industry over the last Iew
decades. According to Bowen et al. (2009) previous research addressed issues such as use oI
value management in construction (Dell'Isola, 1982; Kelly and Male, 1993; Connaughton
and Green, 1996; Kelly et al., 2004); best practice and benchmarking (Male et al., 1998); VM
Ior managing the project brieIing and design processes (Yu et al., 2005); VM methodologies
and techniques (Dell'Isola, 1982; Zimmerman and Hart, 1982),VM in strategic development
oI inIrastructure (Barton and Knott, 1996; Che'Mat, 2006);VM perIormance measures (Lin
and Shen, 2007); relationship between VM and quantity surveying (Ellis et al., 2005; Hogg,
1999); integration oI risk and value management (Dallas, 2006; AIila and Smith, 2007);
group decision support systems (Fan et al., 2008), group dynamics in VM (Leung, 2003), the
implementation oI VM in the public sector projects(Kelly and Male, 1999), global
development oI VM client value systems (Kelly, 2007), VM in alternative dispute resolution
(Tanenbaum, 2004);and hard versus soIt VM (Green and Liu, 2007).
Further to this, successIul VM application has been reported in many cases on construction
projects and according to Cheah and Ting (2005), the practice oI VM embraces other tools
and techniques such as the structured job plans, the Functional Analysis Systems Technique
(FAST) (KauIman, 1990), Simple Multi Attribute Rating Technique (SMART) (Green, 1994)
and even methods to nurture creative thinking (i.e. Delphi Method). The application oI
various VM tools provides Ior diIIerent 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 oI
construction projects (Zainul Abidin and Pasquire, 2007). The somewhat generic nature oI
VM makes it applicable to many types oI projects ranging Irom buildings to water treatment
works (Cheah and Ting, 2005). Moreover, it also suggested that implementing VM at the
corporate level Ior tasks such as strategic decision-making (Che'Mat, 2002) , quality
management (Teck, 2003; Wixson, 2005) and other systematic contexts are providing bright
prospects Ior the VM discipline and its practitioners in Iuture.
This noted, only a small minority oI research to date has Iocussed extensively on examining
the application oI VM in speciIic construction procurement systems. The research reported
here describes the potential Ior developing a Iramework to Iacilitate the application oI VM in
design and build construction projects within the context oI the Malaysian construction
industry. The study will Iocus on VM application in the design stage oI a construction project
and in examining the contribution oI contractors` early involvement to more eIIective and
eIIicient constructability, which in turn leads to greater cost optimization. This paper
commences with a background review oI VM and design and build, Iollowed by description
oI the survey design and research Iramework. The methodology and expected outcomes oI
research are discussed as is the signiIicance oI the research.


LITERATURE REVIEW

Jalue management (JM) in the construction industry
VM is a structured, organized team approach to identiIying the Iunctions oI a projects,
product or service with recognized techniques and providing the necessary Iunctions to meet
the required perIormance at the lowest overall cost (SAVE International, 2001). VM has been
recognized as one oI the most eIIective methodologies Ior achieving 'best value-Ior-money
Ior clients since its introduction into the construction industry in the early 1960`s (Shen and
Liu, 2003). VM evolved Irom the manuIacturing industry, which initiated Value Analysis
(VA) in 1940`s, and was Iirst applied in the construction industry in 1963 (Dell'Isola, 1982)
and is now attracting interest Irom many sectors oI the construction industry across the world
(Fong and Shen, 2000). The UK has already seen a substantial growth in the development
and practice oI VM, mainly in the construction industry, since the introduction oI VE to the
UK in the 1980s. As reported by Shen (1995), in 1988 RICS published "A Studv of Jalue
Management and Quantitv Surveving Practice", by Kelly and Male, which illustrated the
practice as used in North America, and proposed the beneIits and potential oI using VM in
the UK, particularly to the quantity surveying (QS) proIession. The publication marked the
beginning oI the serious development oI VM as a tool to be used in the construction industry
to achieve better value Ior money.VM in the UK construction industry has evolved to become
an established service with commonly understood tools, techniques, and styles (Kelly et al.,
2004); while Ellis et al. (2005) describe VM as 'widely accepted as an important tool in the
management oI projects. Ever since this time, the VM initiative has been benchmarked by
several countries such as Australia, France, Germany and Hong Kong and this has helped to
Iurther the development and implementation oI country-speciIic VM initiatives.
The concept and application oI VM do not seem to be so well embraced in the Southeast
Asian construction industry (Cheah and Ting, 2005). In Malaysia, VM was Iirst introduced in
1986 and despite some beneIits being observed as a result oI 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 oI 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 oI knowledge
and regular practice oI VM, and also to a resistance to change by the parties involved during
VM workshops (Jaapar and Torrence, 2006). A preliminary literature review has indicated
((Jaapar and Ismail, 2001; Jaapar et al., 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 oI the VM methodology and concepts in their project operations,
however due to some unsuccessIul outcomes, the take up oI VM practices in Malaysia has
not been large (Jaapar et al., 2009). Despite some resistance to applying VM due to lack oI
knowledge and stories oI past experience by clients, nevertheless, the construction industry
proIessionals acknowledged that VM contributes to the achievement oI value Ior money.
Based on a study conducted by Jaapar et al. (2009), there is a positive Iuture Ior VM within
the Malaysian construction industry as proIessionals Irom various segments oI the industry
now appear ready to implement VM applications in their Iuture projects. The level oI
awareness and appreciation oI VM as an essential toolset Ior providing better value has
developed over time since the inception oI this study to the extent that the Institute oI Value
Management Malaysia (IVMM) was established in 2000 with help and encouragement Irom
Government agencies such as the ProIessional Services and Development Corporation
(PSDC). The latter agency has initiated great eIIorts to promote and provide training courses
in VM within the construction industry. This continuous initiative has opened new
opportunities Ior 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 oI the Prime Minister`s Department mandates that
Ior 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 oI a new
paradigm Ior VM in the Malaysian construction industry, which is expected to allow Ior
more potential areas oI VM to be developed and introduced into the sector.

Jalue Management and Design and Build
Construction project are usually initiated based on the needs oI the client. In order to satisIy
the client`s requirements in terms oI time, cost and quality, various procurement methods are
available Ior consideration to increase the chance oI success Ior the complex sequence oI
activities. Numerous studies suggested that VM is highly eIIective in the early planning
stages oI a project as well as during other stages oI design and construction (Hunter and
Kelly, 1998) and this supports the idea oI a potential existing Ior greater cost savings to be
identiIied by teams oI designers and builders. The identiIication oI potential cost saving
opportunities at the early stage oI a construction project does not occur in all procurement
settings which separate the design and construction phases such as traditional lump sum
contracting, however, the prospect can be more easily applied in a Iast-track system such as
design and build. Design and build integrates design and construction to overcome some oI
the hurdles inherent in the traditional lump sum contracting method (Lam et al., 2008) and it
is a project delivery method in which a project owner has a contractual relationship Ior both
design and construction with a single entity. Unlike the traditional arrangement where the
client`s consultant architects and engineers deal with and manage contractors, in a design and
build project, the contractor and client are in close contact Irom the design stage till the
completion oI a project (Ling and Chong, 2005).
The strategy thereIore places single point responsibility on the contractor Ior the entire
construction process and thereIore the contractor is totally responsible Ior the not only the
construction but also the design liability, including the selection and management oI design
teams (Ng and Skitmore, 2002). The strategy promotes the more eIIective and eIIicient
constructability oI a project due to the input to the design Irom the building contractor which
allows them to inject their own capability, capacity and available technology into the
upstream decision-making, plus it sets a Ioundation Ior speedier project delivery due to the
beneIicial overlaps between design and construction. Uhlik and Lores (1998) cited in (Song
et al., 2009), Iound that design and build and construction management contracts Iacilitate the
integration oI general contractor`s knowledge into the design and they conclude that early
involvement oI contractors in construction projects is highly recommended.
The involvement oI contractors at the early stage oI projects is seen as providing greater
opportunity to enhance the project by way oI allowing construction knowledge to be input by
the contractor at this critical juncture. An absence oI contractor expertise may result in over-
emphasis on the building design, and a Iailure to properly consider the practicalities oI
construction (Bowen et al. 2009). According to Song et al. (2009), there are several distinct
advantages to contractors having early involvement in construction projects which are
Iollows:

i. Contractors have a higher level oI construction expertise due to specialist training and
an in-depth knowledge oI construction materials, methods and local practices;
ii. Contractors can provide project and contractor speciIic inIormation on the availability
and limitations in term oI cost, perIormance, access and site conditions and this is
needed to support design;
iii. It is the contractors who are responsible Ior the actual construction operations,
thereIore, their input has direct impact on the perIormance oI the project; and,
iv. Continuous involvement Irom the design stage promotes opportunities to inIluence
project costs, which in turn gives time Ior better quality oI 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 oI Value Management (VM) as an alternative method used Ior solving engineering
problems, leads to early cost appraisal oI a more eIIicient plan layout and selection oI
alternative materials and establishment oI best methods oI construction by the contractor.
This is also supported by Lam et al. (2008) who observes that the inclusion oI innovative
management approaches at an early project stage (i.e. Value Management) contributes one oI
the major success Iactors Iound in design and build projects. Cheng (1995) in Lam et al.
(2008) has reported that value management has been carried out in design and build projects
to eliminate unnecessary costs without additional expenditure through the beneIits realizes
through extensive teamwork at the early stage oI a project where project participants meet
together with the aim oI optimizing cost oI that project.
A study conducted by Akintoye (1994) on contractors` views on design and build highlighted
that the Iactors most signiIicant to reducing the overall project cost which the application oI
VM assisted in identiIying are: (i) alternative solutions to engineering problems (ii) early cost
appraisal oI eIIiciency oI plan layouts and (iii) selection oI alternative materials and methods
oI construction.
It appears that the integration oI the design and construction stages does oIIer Ilexibility to
the project which makes design and build an ideal contract arrangement Ior projects to better
meet client objectives. There are nonetheless setbacks and issues Iaced by design and build
which need to be taken into consideration. According to Chan et al. (2005), the end product
oI design and build projects can be uninteresting and dull, since the designer`s creativity can
be stiIled because oI interIerence Irom builders (due to the leading, and equal role given to
them) in the design. This problems exists when there is separation oI design roles and overall
design management (Love et al., 1998), dispute oI design responsibility (Chan and Chan,
2000, in Chan et al, 2005) and inheritance oI design errors (Ng and Skitmore, 2002). The
RICS Procurement Guide (Royal Institution oI Chartered Surveyor (RICS), 1996) Iurther
suggests that other disadvantages attendant to design and build are:
i) The client is required to commit beIore the detailed design is completed, leaving
limited room Ior contribution to design requirements;
ii) There is no design overview unless separate consultants are appointed by the client Ior
this purpose;
iii) DiIIiculties can be experienced by clients in preparing an adequate brieI;
iv) Design liability is limited by the use oI standard Iorm oI contract; and,
v) Client changes to project scope can be expensive.

Throughout the literature, the combination oI design and management Iunctions in design and
build projects has oIten been highlighted as a central issue which impedes the pursuit oI
success in construction projects. This means that any Iailure in coordinating management,
design and construction among various parties can seriously aIIect the achieving oI the
client`s objectives. The eIIect oI such Iailure oIten 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 oI the cost oI the construction blowing-up`
iI activities such as design coordination, contingency recommendation and the contractor not
being provided with complete inIormation, in particular drawings, are not properly managed
during the early design stage oI a project.

Ashworth and Hogg (2000) pointed out that VM has been recognized as a Iactor that is
critical to the success oI projects. Most VM currently practiced in the industry Iocuses on the
design development and improvement to the Iunctions oI 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 Iocuses on value rather than cost and seeks to achieve an optimal
balance between time, cost and quality as it provides a method oI integration in the building
process that no other management structure in construction can provide (Kelly et al., 2002). It
is distinguished by three primary core elements namely i) a value system, ii) a team-based
process and iii) the use oI Iunctional analysis to promote in-depth understanding (Kelly et al.,
2004).
The literature appears to indicate the Iact that a weakness exists in design and build systems,
particularly related to coordination during the design stage oI a project where the contractors`
early involvement is expected to inIluence the more eIIective achievement oI project
objectives. It is this aIorementioned discussion that has raised several research questions that
need to be examined as Iollows;
i. How do decisions made during design stage oI construction projects adopting a design
and build strategy succeed in achieving client`s objectives in terms oI meeting
approved cost budgets?
ii. What are the critical issues involved during the design stage oI projects which oIten
lead to Iinal costs exceeding budgets?
iii. How does the application oI VM (with the inclusion oI 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 identiIy the decision-making process perIormed by the design team and contractors
during design stage;
2. To identiIy constraints Iaced by design teams and contractors in developing design that
Iully meet client`s requirements;
3. To study the contractor perceptions oI how, or iI, VM applied during the design stage
(upstream`), Iacilitates better ultimate buildability during construction (downstream`);
and,
4. To examine the potential savings generated Irom VM intervention during the design
stage, especially when applied with inclusion oI contractors` inputs.


METHODOLOGY
The purpose oI the study on which this paper is based to assess and investigate the
application oI 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
oI quantitative and qualitative methodologies, however a qualitative approach will be the
dominant method used Ior conducting the study; speciIically using a case study, conducting
Iocus group sessions and development oI a VM workshop approach speciIically 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 eIIicacy and impact oI implementing VM
during the design stage oI 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 Ior Iurther analysis relating to the experiences and practices oI VM among
construction teams in the Malaysian setting. The Iocus group and workshop are aimed at
validating Iindings Irom the case study and as a platIorm Ior a Knowledge Bridge` between
the theoretical and practical views. Some basic quantitative methods will be applied in
reviewing survey data obtained Irom the application oI the VM Iramework and Ior setting
criteria Ior the case study selection. In this research, the literature review will be used to
explore the principles, application, criteria and theories oI VM that address issues related to
design management and coordination oI processes and stakeholders in design and build
projects.

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




























Figure 1: Research Process

Stage 1: Literature Review
An extensive and detailed literature review will be conducted with the aims oI obtaining
inIormation pertaining to the current development oI VM in the Malaysian construction
industry, the perspectives Irom various industry players` on the implementation oI 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 Iocusing on the
project design stage, methods used Ior decision-making and the methods Ior resolving
conIlicting design issues, buildability and the roles played by various parties involved with
the design and construction processes. The primary objective oI the literature review is to
obtain a current picture oI the status oI strategic and operational VM application in the design
development stage oI the typical design and build project. A pilot survey will be undertaken
in order to obtain preliminary data on the current status oI the application oI VM in various
types oI construction project and speciIically in design and build procurements. The literature
review, together with a corroborative interview with an acknowledged expert in the Iield, will
be used to Iormulate a set oI criteria which will be examined Iurther in a series oI semi-
structured interviews.

Literature Research
Interviews
Survev
Based on results Irom
stage 1 & 2
Based on results stage
Irom 1 - 3
STAGE 1
STAGE 2
STAGE 3
STAGE 4
Pilot
Survey
RESEARCH PROBLEMS
CASE STUDY
ANALYSIS
Workshop
DraIt VM Framework
Focus Group
Findings
Stage 2: Case Study
Investigation using a case study approach is a strategy directed at researching an
experimental theory, or a topic, using sets oI procedures comprised oI several diIIerent
combinations oI 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 Ior
this research in order to investigate a contemporary phenomenon in-depth and within its real
liIe context, especially when the boundaries between phenomenon and context are not clearly
evident (hence the term exploratory`) (Yin, 2009). In this case, the Iocus oI the exploratory
case study is the implementation oI VM during the project design stage. The case study will
investigate and capture the situation/activities involved during the decision-making process oI
a typical design and build project design stage. The capturing oI inIormation at this stage will
Iurther identiIy the strategies used and constraints Iaced, by the project team in meeting their
targeted project cost. An examination oI archival records such as correspondence, minutes oI
meetings; drawings; Bills oI Quantities (BQ) and other transmittals will be examined in order
to identiIy the various processes and activities involved during the project design stage that
have an impact on, or are relevant to decision-making, cost optimization and buildability.
This review oI documentation will attempt to identiIy the patterns oI behaviour oI the project
team members in design decision-making process and the constraints Iaced in meeting
client`s requirements. Understanding the behaviour and culture that exists within the
working-team organisation will allow Ior codiIication oI the roles played by each team
member and how their behaviour and attitudes can ultimately inIluence the cost and
buildability oI the project. The unit oI analysis Ior this research variable will be the savings
generated as a direct result oI applying the VM study. A multiple case study design is
proposed where the sub-units oI analysis or variables will comprise oI the team oI
proIessionals and stakeholders involved in the project, i.e., architects, engineers, quantity
surveyors, contractors/sub-contractors and the client. The overall eIIicacy and reliability oI
this method is dependent on the comprehensiveness oI the inIormation retrieved Irom the
archival records oI the project selected. Past studies have indicated that the implementation oI
VM at an early stage oI projects provides opportunities Ior greater savings in construction
project costs (Barton and Knott, 1996; Dell'Isola, 1982; Kelly et al., 2004; Hunter and Kelly,
1998; Che'Mat, 2002; Dallas, 2006)and so a multiple case study has been selected Ior the
main research as it is Iocused on testing a well- Iormulated theory (Yin, 2009) related to the
application oI VM during the design stage oI a construction project.
Design and build construction projects initiated by the private sector is selected as samples
Ior case study. The selection oI case is made based on projects which have succeeded and Iall
short to achieve the project objective (i.e. cost) and have not experienced any VM study. The
combination oI both selections aimed at establishing a comparative result on the potential
application oI VM which will better ampliIy the Iindings oI the study. Case selection will be
shortlisted on a set oI criteria based on aspects drawn Irom 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 reIerral bourse in Asia Ior
business investments. The most typical (or most data-rich) that IulIil the short listing criteria
will be selected Ior the case study with the aim oI identiIying the major operational activities
associated with design stage, problems encountered, scope oI work involved, decision-
making processes being applied, construction cost optimisation techniques used and value-
added initiatives identiIied Ior the client. The outcome oI this phase oI the research is
intended to explore areas such as the overall use and practices oI VM in the construction
sector, the impact oI strategic stage in which the study is Iocused on cost optimization
opportunities (i.e. the detailed design stage), involvement and contribution oI various
involved proIessionals, savings gained (whilst still complying with client`s objectives oI cost
optimization), and the designer`s value-adding ambitions.

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

Stage 4: JM Workshop and Focus Croup Discussion
The VM workshop and Iocus group discussion are proposed Ior the Iinal stage oI the study in
order to Iurther examine the potential savings and value-additions that are available and yet to
be applied in the case study projects. The workshop and Iocus group discussion will be
primarily aimed at validating the Iindings obtained Irom the literature review, the case study
and the interviews. Subsequently it is also aimed at obtaining ideas and contributions through
discussion oI relevant issues. A panel` oI international experts in the VM Iield will be jointly
invited to participate in a virtual` Iocus group discussion oI the Iindings via Windows Live
Messenger (ninemsn Pty Ltd, 2010). The Iindings through the use oI this method are
expected to address all oI the research questions thus indicating whether or not
implementation oI VM in design and build construction projects (particularly using
contractors` input at the project design stage) can really enhance the construction cost
optimization, more Iully achieve project objectives, improve buildability and provide more
value-additions Ior the client.

Significance of the Research
The Iindings Irom the research represented in this paper are expected to be signiIicant in
Iurther contributing to the current pool oI academic knowledge oI VM eIIectiveness and use
and to advance the previous research conducted, integrating and lodging it speciIically within
the construction and the private sectors, in a Malaysian context. The investigation and study
oI the application oI 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 beneIits oI VM implementaion in achieving cost optimization
on, and adding value to, construction projects. It is anticipated that the Iindings oI this
research could oIIer a Iramework Ior proIessionals and clients in the private sector to better
understand the constraints oI, and strategies needed to implement, VM in their Iuture
projects. A Iurther beneIit oI the research is to oIIer the chance Ior a paradigm shiIt Iorward
Ior contractors to signiIicantly improve all aspects oI project outcomes Ior clients through
their early involvement in the project design stage and through the use oI VM, speciIically in
the Malaysian context.

REFERENCES

AIila, D. and N. J. Smith. 2007. Risk management and value management in project
appraisal. Proceedings of the Institution of Civil Engineers. Management,
Procurement and Law 160 (2):63-67.

Akintoye, A. 1994. Design and build: A survey oI construction contractors' views.
Construction Management and Economics 12 (2):155-163.

Ashworth, A. and K. Hogg. 2000. Added value in design and construction. Harlow:
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