Value Engineering in Controlling Cost Overrun in Residential Building Projects

Abstract

On comparing with other industries, construction industry requires a huge effort to balance factors such as cost, quality and time. Cost overrun is a major factor that diminishes the value of construction projects. Saving money without compromising quality is an idea that everyone can promote. Value Engineering (VE) is a systematic approach that can be used to attain better balance between cost, quality and function of a product or facility. The main aim of this research is to identify the awareness level of VE in the construction sector and to compare the value generation for the client in terms of money before and after applying VE principles. In this research, a case study of residential building project is considered and focused on selecting best value-adding material for masonry work using VE phases. Questionnaire surveys are used to identify the awareness level about VE in construction sector and the responses are analyzed using SPSS software. To manage cost overrun in residential projects, this study focuses on recommending alternative proposals for building blocks that add value to the work at low cost without compromising the functional quality. Selection of best alternative is based on parameters such as cost, quality and availability, and material ranking using weighted decision matrix. The findings from the study showed that about 4% cost saving is possible by the application of VE in masonry work of residential project and also suitable recommendations are made based on the data collected.