Value achievement in construction industry

Abstract

The construction industry plays a major role in transforming concepts and needs of public into reality by physically implementing various construction developments. The value generated from construction activities lead to increased living standards of the community. Thus construction industry tends to use value techniques to achieve value in order to provide optimum available value for client's investment. The purpose of this paper is to explore the status of value achievement via value techniques in Sri Lankan construction industry. Case studies were used as the main mode of data collection on value techniques applied in construction projects in Sir Lanka. The results revealed that awareness of value techniques is not widespread among Sri Lankan construction professionals. However, techniques like Value Engineering (VE) is used to accomplish certain mandatory requirements such as working up drawings. In addition results revealed that earned value and Cost Benefit Analysis (CBA) are used as indirect techniques in measuring value embedded in certain compulsory requirements that have to be maintained. This study is limited to most significant value techniques prevailing in construction industry. Namely, financial management techniques, CBA, Whole Life Cycle Cost (WLCC), earned value and VM applications (VE, VM, VA). This paper improves comprehension of nature, characteristics and problems of applicability of value techniques in construction processes.