Abstract
In construction, frequent contract changes and budget overages occur due to uncertain construction site conditions, schedule delays, and cost fluctuation. However, it has been demonstrated that it is possible to reduce construction costs through creative alternative solutions. For instance, through the implementation of the “Enforcement Decree of the Budget and Accounts Act” in 1980, the Korean government has attempted to enhance the construction process by distributing saved costs to contractors. However, Korea’s “Technology Development Rewarding System,” which is a regulation to activate Value Engineering (VE), has yielded tenuous results with only 5 successful cases. Through an examination of previous research and expert surveys on VE, this study identifies the predominant factors that influence the implementation of a Value Engineering Change Proposal (VECP) system. These variables are then divided into 5 categories: (1) design quality; (2) type of ordering system; (3) contract change; (4) attractiveness of VECP to contractors; and (5) attractiveness of VECP to owners. Furthermore, while previously proposed strategies, such as controlling the sharing rate, have been based on fragmentary analysis, this study deploys a System Dynamics (SD) approach to comprehensively analyze these variables and their causal relationships, and subsequently present 5 strategies to diffuse VECPs in the public sector. Finally, through a case study, this research proposes the practical implementation of the SD methodology for the development of government and company VE policy. Ultimately, this research aims at presenting strategies that will induce the government to revise their VE policy.
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Park, M., Ahn, C., Lee, H. et al. System dynamics-based strategies to diffuse construction VE in the public sector. KSCE J Civ Eng 16, 486–498 (2012). https://doi.org/10.1007/s12205-012-1226-0
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DOI: https://doi.org/10.1007/s12205-012-1226-0