Application of value engineering to building refurbishment projects

Abstract

Refurbishment projects are characterised with uncertainty and complexity that result in subvert of value for money. In this context, value management (VM) is endorsed as an approach to optimise value for money of construction projects. Enhancing VM application in refurbishment projects seems less, even though employing VM application in new building projects continues. This research developed a framework to enhance VM application in hotel refurbishment projects in Sri Lanka, since refurbishment projects that have employed VM are comparatively high in hotel sector. Data was collected through semi-structured interviews with 18 participants, documents review and observations. The manual and code-based content analysis was used for data analysing. The study revealed that VM is employed in an ad-hoc manner, primarily as a cost reduction exercise. The VM workshops adopted for the case studies were derivatives of the standard SAVE 40-hour job plan and contractors' change proposal. However, this study proved that the ad-hoc application of VM could reduce the project cost on average by 6.81%. Nevertheless, the ad-hoc VM studies contributed to time overruns of 1 to 3 months. Absence of evidence of quantifying the impacts of the other value for money attributes; quality, guest satisfaction and achievement of sustainability was noteworthy. The two topmost challenges to implement VM in refurbishment projects were the inadequate awareness of the client about the significance of VM and insufficient time to conduct the VM study while the project is ongoing. The current study introduced a framework for enhancing VM application in hotel refurbishment projects in Sri Lanka by incorporating strategies on raising awareness, training and development on VM, choosing the appropriate timeframe to apply VM, choosing the appropriate composition for the VM team, choosing the appropriate VM job plan and enabling legal provisions and assistance from regulatory bodies.