Value engineering in construction business in Sri Lanka

Abstract

Value Engineering concepts have been in the Sri Lankan construction industry for many years even though it has not been practiced effectively. The industry practitioners still rely on these concepts mainly in situations when their project cost exceeds the budget. Therefore, it has been more popular as a cost-cutting tool rather than a vital concept for value improvements. Related literature however, reveals that Value Engineering (VE) concepts are very popular in other countries and are being used frequently in construction business to achieve improvements in value. Previous researchers have reveled that absence of a proper VE procedure is one of the main constraints for an effective VE practice in the Sri Lankan construction industry. This study attempts to derive a procedure for establishing an effective VE practice for the Sri Lankan construction business. As a result, VE methodology and guideline / workbook were developed. Various VE manuals and guidelines that are being used in other countries were analyzed in order to determine a tailor-made VE methodology for the country. The survey results revealed that people's awareness of VE methodology in these construction companies is not very satisfactory. However they are in favour of having a proper VE methodology and a guideline for a better practice in future. The ICTAD's latest move to include VE clauses into the 'Standard Bidding Document' were highlighted as clear indication of the future prospects for VE. The methodology and the guideline / workbook developed has however, not been field tested. Therefore, another industrial survey consisting -of presentations and discussions need to be carried out to find out, if any changes are needed for improvement. The ICTAD could be of help for further improvement of this methodology and guideline in the aim of creating a standard VE methodology for the construction industry in the country.