Preferences help
enabled [disable] Abstract
Number of results
2016 | 54 | 40-59
Article title

Value Management – Creating Functional Value For Construction Project: An Exploratory Study

Title variants
Languages of publication
Value management is a process whereby the project is evaluated and scrutinised to obtain maximum value for money by following a prescribed methodology. It focuses on the value, rather than cost, in relation to the function of the element of the project. However, value relates to what an element does. The key benefit of VM is the financial benefits to the client; other benefits include a clearer brief, improved communication, use of local materials etc. However, there are barriers to its application such as inadequate training and education, the unwillingness to entertain new ideas, lack of regulatory framework etc. Also, the following drivers of VM approach were identified: establishment of a regulatory framework, client’s awareness, establishment of a group support system on VM etc. This paper considers value management from a functional value perspective and argues for greater recognition for it to form an integral part of projects.
Physical description
  • Department of Quantity Surveying, Federal University of Technology Akure, P.M.B. 704, Akure, Ondo State, Nigeria
  • Department of Quantity Surveying, Federal University of Technology Akure, P.M.B. 704, Akure, Ondo State, Nigeria
  • Department of Quantity Surveying, Federal University of Technology Akure, P.M.B. 704, Akure, Ondo State, Nigeria
  • [1] Abidin N.Z., & Pasquire C.L., (2003). Moving towards sustainability through value management. In: Proceedings of the joint international symposium of CIB working commissions W55, W65 and W107, Singapore, Vol. 2, p. 258-268.
  • [2] Abidin, N. Z., & Pasquire, C. L. (2005). Delivering sustainability through value management: Concept and performance overview. Engineering, Construction and Architectural Management, 12(2), 168-180.
  • [3] Abidin, N. Z., & Pasquire, C. L. (2007). Revolutionize value management : A mode towards sustainability. International Journal of Project Management, 25, 275-282.
  • [4] Abidin, N.Z., Said., & I. (2006). Involvement of sustainability issues in value management: requisite factors. Paper presented at the International Conference on Construction Industry: Toward Innovative Approach in Construction and Property Development, Padang, Indonesia.
  • [5] AbouRizk, S.M. Mao, X. & Zhang, X. (2009). Developing a knowledge management system for improved value engineering practices in the construction industry. Automation in Construction p. 776-779.
  • [6] Ashworth, A., & Hogg, K. (2000). Added Value in Design and Construction. Essex: Pearson Education Limited.
  • [7] Australian/New Zealand Standard (AS/NZS). (1994). “Value management.” AS/NZS 4183, Joint Technical Committee OB/6.
  • [8] Best, R., & De Valence, G., (eds) (2002), Design and Construction: Building in value, Butterworth - Heinemann, Woburn.
  • [9] Bowen, P., Edwards, P., Cattell, K., & Jay, I. (2010). The awareness and practice of value management by South African consulting engineers : Preliminary research survey findings. International Journal of Project Management, 28(3), 285-295.
  • [10] Cha, H. S., & Connor, J. T. O. (2006). Characteristics for Leveraging Value Management Processes on Capital Facility Projects. Journal of Management in Engineering, 22(3).
  • [11] Che Mat, M. M. (1999). Value Management: Towards Achieving Better Value for Your Money. Johor: Professional Centre for Value Management Sdn Bhd.
  • [12] Chung, J. K. H. & Shen Q. (2004). A group supports system for improving value management studies in construction. Automation in Construction.p. 209-212.
  • [13] Cloete, C.E. (2008). Class notes- Value management and life cycle costing. The university of Pretoria. Pretoria.
  • [14] Coetzee, C.E. (2009). Value management in the construction Industry: What does it entail and is it a worthwhile Practice. BSc Thesis, University of Pretoria.
  • [15] De Leeuw, C.P. (1998). Value management internal working manual. Pretoria. C.P. de Leeuw (Pty) Ltd.
  • [16] DeSanctis, G., & Gallupe, R.B., (1987). A foundation for the study of group decision support systems. Management Science 33(5), 589-609.
  • [17] Devonport, Gronqvist, Kelly & Male, (2007). Electronic value management for the 21st century. Value solutions Ltd. England.
  • [18] Ellis R.C.T., Keel D.A., & Wood G.D. (2004). Value management practices of leading UK cost consultants. Construction Management and Economics, p. 484, 489, 491.
  • [19] Ellis, R. C. T., Wood, G. D., & Keel, D. A. (2005). Value management practices of leading UK cost consultants. Construction Management and Economics, (June), 483–493.
  • [20] Fan, S., & Shen, Q. (2011). The effect of using group decision support systems in value management studies : An experimental study in Hong Kong. International Journal of Project Management, 29(1), 13–25.
  • [21] Fan, S., Shen, Q., & Lin, G. (2007). Comparative Study of Idea Generation between Traditional Value Management Workshops and GDSS-Supported Workshops. Journal of Construction Engineering and Management, 133(10), 816-826.
  • [22] Flanagan, R. & Jewell, C. (2005). Whole life appraisal for construction. Oxford: Blackwell Publishing Limited.
  • [23] Fong, P. S., Hills, M. J., & Hayles, C. S. (2007). Dynamic Knowledge Creation through Value Management Teams. Journal of Management in Engineering, 23(1), 40-50.
  • [24] Fong, S. W. & Shen, Q. P. (2000). Is the Hong Kong construction industry ready for value management? International Journal of Project Management, 18. pp. 317-326
  • [25] Fong, S.W. (2003). “Value management – going all out for knowledge creation”, The Value Manager, Vol. 9 No. 1, available at
  • [26] Good Practice Guide [GPG], (1997). Value Management: "It's not just a good's the law". Lifecycle Asset Management. GPG-FM-011. Department of Energy, Office of Field Management, Office of Project and Fixed Asset Management.
  • [27] Green, S.D.& Liu, A.M.M. (2006). Theory and practice in value management: a reply to Ellis et al. Construction Management and Economics. p. 650.
  • [28] Institute of Value Management (2002). What is Value Management?, IVM, available at
  • [29] Jaapar, A. (2006). The Application of Value Management in the Malaysian Construction Industry and Development of Prototype Value Management Guidelines. Universiti Teknologi MARA, Shah Alam, Selangor.
  • [30] Jaapar, A. (2011). Capacity Building for Value Management in Malaysia, Value Management Seminar, Putrajaya International Convention Center. 24 May.
  • [31] Karim, S. B. A., Rahmin, R. ‘Adawiyah A., Danuri, M. S. M., & Mohamed, O. (2014). Developing the Value Management Maturity Model (VM3 ©). Journal of Design and Built Environment, 14 (June), 1-10.
  • [32] Kaur, G. (2012). The value management advocate. Malaysian Business. June 1, pp.36-38. Kuala Lumpur: Berita Publishing.
  • [33] Kelly, J., & Male, S. (2006). Value management. In Kelly, J., Morledge, R., & Wilkinson, S.(Ed.), Best value in construction, United Kingdom: Blackwell Publishing, pp. 77-99.
  • [34] Kelly, J., Male, S., & Graham, D., (2004). Value Management of Construction Projects. Blackwell, Oxford.
  • [35] Kelly. J, & Male, S. (1993). Value management in design and construction. The economic management of projects. Glasgow. E & FN Spon Inc.
  • [36] Kim, S., Lim, J., Kim, J., & Cheon, Y. (2010). Application of value analysis for SOC project in Korea. In SAVE International’s 50th Annual Conference, 7-10 June 2010, Long beach, California.
  • [37] Kiyoyuki, K., Sugisaki, K., & Kobayashi, K. (2005). Statistical Deterioration prediction considering the non-uniformity of the visual inspection interval, In Proceedings of the International seminar on asset management. Jointly organized by Kulliyyah of Architecture and Environmental Design and Kyoto University Japan. Held in Kuala Lumpur, Malaysia.
  • [38] Leung, M. Y., Chu, H. Y. & Lu, X. (2003). Participation in value management. Report forRICS Education Trust Founded Project.
  • [39] Locke, M.B. (1994). Management of value in the British construction industry. SAVE International. London MARA, Shah Alam, Selangor
  • [40] May, S.C. (1994). Value engineering and value management. United Kingdom: The College Of Estate Management.
  • [41] McElligott, W.C. Norton, B.R. (1995). Value management in construction, a practical guide. London. Macmillan Press Ltd.
  • [42] Noor, N.F.M, Kamruzzaman, S.N. and Ghaffar, N.A (2015). Sustainability concern in value management: A study on Government's building Project. International Journal of Current Research and Academic Review, pp. 72-83.
  • [43] NSW Treasury, (2004). Value Management Guideline. Total Asset Management. ISBN 0 7313 32962
  • [44] Odeyinka, H. A. (2006). The role of the quantity surveyor in value management. Paper presented at the 22nd Biennial conference/general meeting on Quantity surveying in the 21st Century Agenda for the Future. Nigerian Institute of Quantity Surveyors.
  • [45] Office of Government Commerce [OGC] (2007). Value Management in Construction: Case studies. Office of Government Commerce, Trevelyan House, 26 - 30 Great Peter Street, London SW1P 2BY.
  • [46] Oke, A. E. & Ogunsemi, D. R. (2011). Value Management in the Nigerian Construction Industry: Militating factors and perceived benefits. Proceeding of the second international conference on advances in engineering and technology. Faculty of Technology, Makerere University, Uganda, 30 January – 1 February, 353-359.
  • [47] Olanrewaju, A. A., & Khairuddin, A. (2007). Determining whether Value Management is practiced in the Nigerian Construction Industry, In Proceeding of Quantity Surveying International Convention (QSIC). KR and CIDB. 4-5th September, Kuala Lumpur.
  • [48] Rains, J.A. (2008). The integration of the Japanese Tear-down Method with a design for assembly and value engineering. Value World 31, p. 29.
  • [49] Rangelova, F. & Traykova, M. (2014). Value Management in Construction Project. First Scientific- Applied Conference with International Participation "Project Management in Construction" University of Architecture, Civil Engineering, and Geodesy
  • [50] Robinson, J.L. (2008).V alue added strategies to sustain a successful value improvement program. Value World 31, p. 19.
  • [51] The Department of Housing and Works (2005). Value Management Guidelines, Government of Western Australia. Retrieved June 7, 2015, from
  • [52] The Institute of Value management (2008). What is value management? Retrieved June 7, 2015, from
  • [53] Thomson D.S., Austin S.A., Mills GR, & Devine-Wright H. (2003). Addressing the subjective view of value delivery. In: The proceedings of the RICS foundation construction and building research conference, the University of Wolverhampton, p. 197-213.
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.