Value Management in Bruneian Construction

THE PERCEPTION OF VALUE MANAGEMENT IN THE BRUNEIAN
CONSTRUCTION INDUSTRY
HAJI MUHD SYAFIQ HJ ABD ZARIFUL
TAYLOR’S UNIVERSITY

TAYLOR’S UNIVERSITY
DECLARATION OF UNDERGRADUATE DISSERTATION AND COPYRIGHT
Author’s full name: ___________________________________________________________________
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I acknowledged that Taylor’s University reserves the right as follows:
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Certified by :
___________________________________ __________________________________
SIGNATURE SIGNATURE OF SUPERVISOR
6th November 2017 6th November 2017
C0195096 PUAN AZRINA MD YAAKOB
AUGUST 2017
14/06/1996
HAJI MUHD SYAFIQ BIN HJ ABD ZARIFUL

SUPERVISOR’S DECLARATION
“I hereby declare that I have read this dissertation and in my opinion this dissertation is
sufficient in terms of scope and quality for the award of the degree of Bachelor of
Quantity Surveying (Honours)”
Signature
Name of Supervisor :……………………………………
Date :…………………………………...
PUAN AZRINA MD YAAKOB
6th November 2017

HAJI MUHD SYAFIQ BIN HJ ABD ZARIFUL
A dissertation submitted in fulfilment of the
requirements for the award of the degree of
Bachelor of Quantity Surveying (Honours)
School of Architecture, Building and Design
Taylor’s University
November 2017

ii
DECLARATION
I declare that this dissertation entitled “THE PERCEPTION OF VALUE
MANAGEMENT IN THE BRUNEIAN CONSTRUCTION INDUSTRY” is the result of
my own research except as cited in the references. The dissertation has not been
accepted for any degree and is not concurrently submitted in candidature of any other
degree.
Signature : …………………………….
Name : …………………………….
Date : …………………………….6th November 2017

iii
DEDICATION
This thesis is dedicated to my beloved father, mother, my siblings, and to all the people who
provided me with endless love and support. Thank you for believing in me and for taking part in
my journey.

iv
ACKNOWLEDGEMENT
First and foremost, I would like to express my sincere gratitude to my supervisor, Puan
Azrina Md Yaakob for supervising my work and for her guidance throughout the entire process
of this dissertation. Without her guidance, I would stray off from the right path in conducting
this study.
Meanwhile, I am truly grateful to my lecturer of Research Methodology and Dissertation,
Dr. Myzatul Aishah Kamarazaly for her advices and sharing her knowledge on conducting the
whole research study. Moreover, I would like to express my full appreciation to my friends who
have been of great assistance for me and to my father for helping me engaging the respondents
to collect data for my dissertation. Additionally, all the respondents deserve special
acknowledgement for their utmost contribution to the success of my dissertation. Endless
support from my family has provided me with great motivation.
Finally, I would like to express my deepest gratitude to Taylor’s University for
providing me this golden opportunity to carry out the study. Facilities provided by the university
such as the library sources and online databases are indeed helpful for my dissertation.

v
ABSTRACT
The construction industry faces recurring challenges and demands due to market
conditions by means of governments, for quality and cost control, improvements in
safety, and in avoidance of contractual disputes. Value Management (VM) brings a
different kind of aspect that can help with the raising demand of clients on improving
value in construction projects. Despite Value Management being introduced in the
Bruneian construction industry, the application of this management approach is still not
as well known and is not applied to its full potential. Thus, in order to encourage the
application of VM in Brunei Darussalam, the problem factors of Value Management
application should be effectively identified and to also study the interpretations to these
problems. This research study furthermore aims to understand how the design team
cogitates Value Management in Bruneian construction industry. As this research is
implementing quantitative research technique, a questionnaire survey is conducted
among the professionals in the design team, namely, architects, structural engineers,
M&E engineers, and quantity surveyors, available in Brunei Darussalam. Data collected
is analysed with Average Index (AI) analysis system. The outcome of the research
shows that “Lack of local VM guidelines, and standards” are identified as the main
reason why Value Management is not widely used and “Adequate training” as the main
significant solution for VM. It is revealed that most respondents considers that Value
Management is not encouragingly enough to be implemented with its application still in
doubt, which suggests that many of the respondents agree that it should be developed
first and foremost.

vi
TABLE OF CONTENTS
CHAPTER TITLE PAGE
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
TABLE OF CONTENTS vi
LIST OF TABLES xii
LIST OF FIGURES xiii
LIST OF ABBREVIATIONS xv
LIST OF APPENDICES xvi
1 INTRODUCTION 1
1.1 Background of the Study 1
1.2 Problem Statement 5
1.3 Previous Similar Studies 6
1.4 Research Questions 7
1.5 Research Objectives 8
1.6 Scope and Limitations 8
1.7 Importance of Research Findings 9

vii
1.8 Research Design 10
1.9 Research Programme 11
1.10 Structure of Thesis 13
2 LITERATURE REVIEW 15
2.1 Introduction 15
2.2 Value Management (VM) 16
2.2.1 Definition of VM 16
2.3 Background of VM 17
2.3.1 Evolution of VM: Value Planning (VP) 18
2.3.2 Evolution of VM: Value Analysis (VA) 18
2.3.3 Evolution of VM: Value Engineering (VE) 18
2.3.4 Evolution of VM: Value Management (VM) 18
2.3.5 Historical Background 19
2.3.6 Phases of VM Study (VA>VE>VM)
2.4 Development of VM
2.4.1 Development of Brunei in the construction
industry
2.5 Characteristics of VM
2.5.1 Function-oriented
2.5.2 Multi-discipline team approach
2.5.3 Systems oriented
2.6 Importance of VM
2.6.1 Benefits of VM
2.6.1.1 The improvement of Concept Briefing
2.6.1.2 Multi-discipline team
2.6.1.3 Elimination of Unnecessary Cost
2.7 Application of VM
2.7.1 Overview of VM Workshops
2.7.2 Pre-workshop stage
2.7.3 Workshop stage
20
20
22
23
23
23
23
24
25
25
25
26
26
27
28
28

viii
2.7.4 Post-workshop stage
2.8 Function Analysis
2.9 Team Organisation
2.9.1 VM Facilitator
2.9.2 Selection of VM Team
2.9.3 External Team
2.9.4 Design Team
2.10 Problems of low use of VM implementation
2.10.1 Lack of Knowledge
2.10.2 Resistance to Change
2.10.3 Lack of Experience
2.10.4 Too expensive to carry out VM
2.10.5 Poor facilitation skills
2.10.6 Insufficient amount of time to implement VM
2.10.7 Lack of VM experts
2.10.8 Lack of local VM guidelines, standards and
specifications
2.10.9 Lack of commitment / support
2.10.10 Lack of Awareness
2.11 Solutions of low use of VM implementation
2.11.1 Careful selection of VM team
2.11.2 Local Guidelines for VM, better standardisation
2.11.3 Provide incentive clause
2.11.4 Conference and Seminar
2.11.5 Institutional Publications, Websites
2.11.6 Early decision making
2.11.7 Adequate training
28
29
30
30
32
32
33
35
35
36
36
37
37
37
37
38
38
39
40
40
40
41
41
41
42
42

ix
3 RESEARCH METHODOLOGY 43
3.1 Introduction 43
3.2 Research Process 44
3.4 Research Framework 49
3.5 Research Techniques 50
3.5.1 Scope and Sampling 50
3.5.2 Sampling Size 51
3.5.3 Design of Questionnaire
3.5.4 Analysis Method
52
54
3.5.4.1 Average Index
3.5.4.2 Ranking
3.6 Summary of Research Methodology
54
55
56
4 DATA ANALYSIS 57
4.1 Introduction 57
4.2 Data collection 58
4.3 Response Rate 58
4.4 Section A: Demographic Profile 59
4.4.1 Job Position 59
4.4.2 Working experience
4.4.3 Value Management Practice
4.4.4 Feedback on VM practice
4.4.5 Current knowledge on VM
4.4.6 Summary of Demographic Profile
4.5 Section B: Why VM is not widely used
4.5.2 Resistance to change
4.5.4 Too expensive to carry out
60
61
62
63
63
65
65
66
67
68

x
4.5.6 Insufficient amount of time to implement
4.5.8 Lack of local VM guidelines, standards and
specifications
4.5.11 Summary of Why VM is not widely used
4.6 Section C: Solutions of VM
4.6.2 Local Guidelines for VM, better standardization
4.6.8 Summary of Solutions of VM
4.7 Section D: Perception towards VM in Brunei
4.7.1 Summary of Perception towards VM in Brunei
69
70
71
72
73
74
75
77
77
78
79
80
81
82
83
84
85
88
4.8 Summary of data analysis 89
5 CONCLUSION 90
5.1 Introduction 90
5.2 Findings
5.2.1 Objective 1 – To investigate why value
management is not widely used in the Bruneian
construction industry
5.2.2 Objective 2 – To explore the solutions of
implementing VM
5.2.3 Objective 3 – To identify the design team’s
perception towards value management in Brunei
91
91
92
94

xi
Darussalam
5.3 Limitations of the Study 94
5.4 Recommendations for Future Works 95
5.5 Conclusion 95
REFERENCES 97

xii
LIST OF TABLES
TABLE NO. TITLE PAGE
1.1 Research Programme Semester 5 12
1.2 Research Programme Semester 6 12
2.0 Definitions of VM, Kelly et al. (2015) 17
2.1 Functional Approach in 6 steps, McGeorge and Palmer (2009) 29
2.2 Facilitator skills, Ashworth & Hogg (2007) 31
2.3 External team, McGeorge & Zou (2012 33
3.1 Average index rating scale 54
4.0 Section A : Demographic Profile 64
4.1
4.2
4.3
4.4
Section B : Why VM is not widely used
Most significant factor of why VM is not widely used
Section C : Solutions of VM
Section D : Perception towards VM in Brunei
75
76
84
88

xiii
LIST OF FIGURES
FIGURE NO. TITLE PAGE
1.0 Conventional vs VM approach 3
2.0 Brunei GDP in construction 22
2.1 Continuum of staged events, Fewings (2013) 27
3.0 Research Process 44
3.1 Research Framework 49
4.0 Response Rate 59
4.1 Job Position 59
4.2 Working Experience 60
4.3 Have practiced VM 61
4.4
4.5
4.6
4.7
4.8
4.9
Feedback on VM practice
Current knowledge on VM
Lack of Knowledge
Resistance to change
Lack of Experience
Too expensive to carry out
62
63
65
66
67
68

xiv
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
Poor facilitation skills
Insufficient amount of time to implement
Lack of VM experts
Lack of local VM guidelines, standards and specifications
Lack of commitment / support
Lack of Awareness
Conference and Seminar
Local Guidelines for VM, better standardization
Careful selection of VM team
Provide Incentive clause
Institutional Publications, Websites
Early decision making
Adequate training
Section D (1)
Section D (2)
Section D (3)
Section D (4)
Section D (5)
69
70
71
72
73
74
77
78
79
80
81
82
83
85
86
86
87
87

xv
LIST OF ABBREVIATIONS
VM Value Management
GEC General Electrical Company
USA United States of America
JKR Jabatan Kerja Raya
UK United Kingdom
CIOB Chartered Institute of Building
AS/NZS Australian/New Zealand Standard
BIM Building Information Modelling
HKIVM Hong Kong Institute of Value Management
VP Value Planning
VA Value Analysis
VE Value Engineering
GDP Gross Development Value
M&E Mechanical & Engineering
PUJA Pertubuhan Ukur Jurutera & Arkitek
AI Average Index

xvi
LIST OF APPENDICES
APPENDIX TITLE PAGE
A
B
C
QUESTIONNAIRE SURVEY FORM
EMAIL FROM RESPONDENT
RESPONSES
102
110
111

1
CHAPTER 1
INTRODUCTION
1.1 Background of study
The construction industry faces recurring challenges and demands due to market
conditions by means of governments, for quality and cost control, improvements in
safety, and in avoidance of contractual disputes. To meet these challenges, construction
enterprises need to constantly seek new directions and business models in construction
management, A number of tools, methods and concepts have been expanded and
recommended as aids to achieving performance, but many in the industry find them
confusing or are sceptical of their relevance (McGeorge & Palmer, 2002). Value
Management (VM) brings a different kind of aspect that can help with the raising
demand of clients on improving value in construction projects.

2
Value Management is characterized as a thorough, orderly and creative
philosophy with multi disciplinary approach to accomplish better value and cost
improvement for facilities, projects, products, systems and administrations without
giving up the required performance (Che Mat, M.M 2004). It is vital to the success of
projects as it gives a rationale for enhancing value for money in construction (Ashworth
& Hogg 2000). Value Management involves representatives of key stakeholders in
facilitated workshop (New South Wales Department of Public Works and Services
1997). Burt, M. E. (1975) defined maximum value as it is “acquired from a required
level of quality at least cost, the highest level of quality for a given cost or from an
optimum compromised between the two” (Kelly, Male & Graham 2004). This definition
emphasizes on the relationship between value, cost and quality. Ordinarily, there seems
to be divided efforts by the architects, quantity surveyors, engineers, project managers,
owners and clients in understanding the proposed projects. In most cases the parties
involved in the planning and design stage tend to work with a silo mentality where they
share common tasks but are unlikely to share ideas with other groups. Value
Management is a very useful tool that can eliminate this kind of mentality where parties
work on a common goal by implementing a structured methodology. There are a lot of
cross-functional discussions and improving communications and a high level of
understanding on the projects undertaken (Che Mat, M.M). This is shown in Figure 1.0
below:

3
Figure 1.0 - Conventional vs VM approach
The concept of Value Management was founded in the United States during
World War II by Lawrence D.Miles in the 1940s, an electrical engineer working in the
General Electrical Company (GEC), who influences worldwide of his understanding of
the problem by means of substituting raw materials which in turn provides equal or
better performance at a lower cost. The use of the concept further developed during the
1940s and 1950s and grew within the USA, becoming a procedure that could be used
during the design or engineering stages (Ashworth, Hogg, & Higgs 2013). The process
originated in the manufacturing industry and has been incorporated by the US
Department of Defence into the delivery of its large-scale construction programme. In
the early 1980s, applications of Value Management were widely used in the UK and
Europe ever since the term was first adopted by the US General Administrations. After
that, Value Management is very much accepted in other industries such as Japan, Korea,
Australia and Saudi Arabia (Che Mat, M.M). Japan view VM as a philosophy rather
than a system (McGeorge & Palmer, 2002).

4
It has then been introduced in Brunei Darussalam in the year 1999-2000 by Che
Mat M.M. In the year 1990, Malaysia, Professor Roy Barton and Mohd Mazlan Che Mat,
introduced VM concept to the organisations in Petronas, The Ministry of Defence as
well as private companies. Seminars were also organized to spread the knowledge and to
create awareness to the Value Management concept. Mohd Mazlan visited Australia in
order to take a closer look into the Value Management Methodology and its
implementation process. He was offered to advice and service the local manufacturing
and construction industry and also to spread the awareness towards VM at the same time.
It was then strongly advised by Tun Daim Zainudin, of IKRAM(JKR), where he
recommended the industry to implement VM on board due to the services offered by
means of the concept during the first National Seminar on Value Management. In the
same year, to make sure that the construction industry and its public are aware towards
the concept and services of VM, Mohd Mazlan went to 5 states in Malaysia which are
Kuala Lumpur, Johor, Penang, Kuala Terengganu, Sabah and later went to Brunei
Darussalam to spread the VM knowledge by giving seminars and talks to the
organizations.

5
1.2 Problem statement
Internationally, Value Management has been perceived as an emerging model
that emphasizes on continuously increasing the value provided to the client and is
extensively accepted as an important tool in the management of construction projects
(Elis, Wood. Et al. 2005). Currently in the construction industry, the majority of the
customers are concerned with attaining value for money in their construction projects. In
response to this demand, a number of companies claim to offer VM as a service,
however there is a misperception of what encompasses the VM with some commentators
going as far as questioning whether VM differ from the established produce of cost
management (Green, 1992). Applications of VM do not seem to be well incorporated in
the construction industry in some countries. VM is hardly applied in Southeast Asia
construction industry (Cheah and Ting, 2005). It is still in its infancy and has not been
well established (Jaapar et al., 2009; Li and Ma, 2012).
Despite Value Management being introduced in the Bruneian construction
industry in 1999-2000 when Mohd Mazlan Che Mat came to disseminate the knowledge
(Che Mat, M.M 2004), the application of this management approach is still not as well
known and is not applied to its full potential. Although there is some indication of VM
applications in the construction industry, regardless it is nevertheless not so popular even
after more than 15 years since it was introduced.
According to Ashworth and Hogg (2000), claims that a 1% fee on construction
cost, it is probable that a total saving between 10%-15% on construction costs can be
attained. This term has been successfully proven mostly in the UK and Europe so
questions arise when countries in Southeast Asia are not implementing VM despite its
benefits. This management approach faces problems as to why the application is not
widely adopted but limited resources for addressing those problems. Thus, in order to
encourage the application of VM in Brunei Darussalam, the problem factors of Value

6
Management application should be effectively identified and to study the interpretations
to these problems. This research study furthermore aims to understand how the design
team cogitates Value Management in the Bruneian construction industry.
1.3 Previous Similar Studies
There have been researchers, who have done studies on Value Management
regarding its misconceptions, comparisons, awareness, etc. A similar study of “Barriers
to Applying Value Management in the Vietnamese Construction Industry” was
conducted by Soo-Yong Kim, Yeon-San Lee, Viet Thanh Nguyen and Van Truong Luu
(2016), where the aim of the study is to identify the hindrance factors and assess the
degree to which each factor hinders the application of VM in the construction industry
and to inspect the fundamental relationships between these factors. The study was made
specifically to the Vietnamese construction industry where the data collected by surveys
identifies 18 hindrance factors. The conclusions of this study can help practitioners in
the Vietnamese construction industry to consider the status of the barriers to applying
VM so they can identify appropriate strategies for their organisations to implement VM
procedures. This includes recommendations which were provided to further develop and
promote VM in the construction industry.
Additionally, a research study entitled “Minimizing The Factors Hindering The
Practice Of Value Management In The Nigerian Construction Industry” which was
conducted by B.Y. Sabiu, Prof V.C.Agarwal (2016), also studies on the hindrance
factors of Value Management practice. The study was made specifically for the Nigerian
construction industry where the data was collected from professionals in construction
and consultant firms which involves quantity surveyors, architects, and engineers in
Nigeria. The objective of the study is to identify the factors hindering the

7
adoption/implementation/practice of value management; to assess the factors hindering
the practice of value management; and to proffer ways to minimize the factors hindering
the practice of VM in the Nigerian construction industry. It was concluded that their
study shows 29 factors hindering the VM practice where it is stated in the conclusion
that ‘it can also be observed that value management is not being practiced in the
Nigerian construction industries’. So many efforts have to be put from various sectors in
order to facilitate the adoption of value management in the Nigerian construction
industry. This will help to produce and give clients their value for money spent on their
projects and hence boost the industry and the nation’s economy at large.
1.4 ResearchQuestions
The primary research questions are:
i) Why is value management not widely used in the Bruneian construction industry?
ii) What are the solutions to value management implementation?
iii) How do the design team view value management practice in the Brunei?

8
1.5 ResearchObjectives
The study aims to achieve the following objectives:
i) To investigate why value management is not widely used in the Bruneian
construction industry.
ii) To explore the solutions of implementing value management.
iii) To identify the design team’s perception towards value management in Brunei
Darussalam.
1.6 Scope and Limitation
The targeted respondents of this study are people in the design team and they are
architects, quantity surveyors and engineers. The reasons for choosing the design team is
because they are the parties who play a big part of conducting the Value Management
practice and lack of experience or knowledge from either one party can affect the whole
practice which can simply result to a cost cutting exercise and failure of Value
Management application. The location of the study will take place in Brunei Darussalam,
where the analysis of the problems and solutions of VM implementation will be
conducted following the perception of the design team towards Value Management in
the Bruneian construction industry.

9
Visualised limitations are the difficulties to generate effective responses given
the amount of different professions in the design team (architects, quantity surveyors and
engineers) required during the period of collecting data. The targeted respondents are
narrowed down to only the design team which excludes other professionals in the
construction industry who also play a part in VM. There is also a minor difficulty in
conducting the study in Brunei Darussalam where as a student of Taylor’s University
Lakeside Campus in Malaysia, have limited time to survey the targeted respondents in
the area.
1.7 Importance of ResearchFindings
Recent studies on Value Management shows that southeast asian countries such
as Malaysia, China and Vietnam rarely implement VM practice in the construction
industry. The research study aims to investigate this issue in Brunei Darussalam where it
includes solutions/recommendations/suggestions that would strategically tackle these
challenges.
Brunei Darussalam is sometimes overlooked when it comes to spreading the
knowledge of Value Management. There often happens to have VM workshop
trainings/seminars around the country such as Australia, Malaysia and China in recent
years. Brunei however needs to address this growing trend of construction industries
from other countries being encouraged to adopt Value Management given its benefits
when used properly to its potential. Therefore, there is a need to study the perception of
how the design team considers Value Management in the Brunei Darussalam
construction industry with the support analysis of understanding the problems of why it
is not implemented and its solutions.

10
1.8 ResearchDesign
OBJECTIVES TYPES OF DATA SOURCES OF
DATA
METHOD OF
COLLECTION
1. To investigate why
value management is
not widely used in the
Bruneian construction
industry.
The problems faced that
prevents the application of
Value Management.
Articles
Books
Journals
Websites
Reading
Questionnaires
Analysis
2. To explore the
solutions of value
management
implementation.
The solutions that can face
the problems that prevents
the application of Value
Management.
Articles
Books
Journals
Websites
Reading
Questionnaires
Analysis
3. To identify the
design team’s
perception towards
value management in
Brunei Darussalam.
Evaluate the level of
perception of the design
team after understanding the
problems and solutions
mentioned in objective 1
and 2. The level of
perception should be on a
scale of whether to consider
applying VM or not.
Articles
Journals
Websites
Reading
Questionnaires
Analysis
Table 1.0 - Research Design

11
1.9 ResearchProgramme
Activity
Semester 5
Month
April May June July
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Research
Proposal
Selection of
topic and
identifying
research
objectives
Reading and
Research
Drafting
overview
Drafting of
programme
Review of
draft
Corrections
Finalizing
and
referencing
Submission
of Research
Proposal
Literature
Review
Drafting of
Literature
review and
development
Referencing
Review of
draft
Corrections
Finalizing
and
referencing

12
Submission
of Literature
Review
Table 1.1 - Research Programme Semester 5
Activity
Semester 6
Month
August September October November
1 2 3 4 5 6 7 8 9 10 11 12 13
Data Collection
Theoretical
framework
Submission of
Research
Methodology
Preparation of
questionnaires
Distribution of
questionnaires
Data collection
and analysis
Final
submission of
dissertation
Table 1.2 - Research Programme Semester 6
Legend :
Completed In Progress
Outstanding

13
1.10 Structure of Thesis
Chapter 1 consists of the general overview of the research which
involves the introduction, background of the study, research problem
statement, research questions as well as the objectives, scope and limitation,
the importance of research findings, research design and research
programme.
Chapter 2 is dedicated to the review of literature which contains
detailed explanation of the objectives of this study. This literature review
will highlight the problems and solutions of VM implementation as well as
the perception of the design team towards implementing it in the Brunei
Darussalam construction industry.
Chapter 3 will show the research methodology of this study, which
summarizes the selected research design, data resources, procedures utilized
in the study and the data gathering method for the further analysis of the
research.

14
Chapter 4 illustrates the analysis of data from the questionnaires and
interviews that are obtained. The information obtained shall be summarized
in the form of graphs or figures which will lead to the written conclusion of
the study
Chapter 5 is the last chapter which concludes the research findings,
giving the reader an evaluation of the whole research and what the design
team perceive towards VM application with the recommendations for
further studies

15
CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
The purpose of this chapter is to create an in depth understanding of Value
Management in the construction industry. This chapter seeks to highlight the main
objectives of this research study through the relevance of other existing research studies
in which they are to investigate why Value Management is not widely used, to explore
the solutions to why Value Management is not widely adopted, and to identify the
current perception towards implementing Value Management.

16
2.2 Value Management (VM)
Construction projects have been the subject of numerous reviews and reports in
recent years, some identifying that there is a need for integration of the supply chain, a
need for easiness in contractual language and preparations, and a need to move away
from the cheapest options regarding the best value option (CIOB Institute, 2011)
2.2.1 Definition of VM
Kelly, Male and Graham (2015) define VM as “a philosophy, a set of principles,
and a formal, structured, value-based management methodology for improving
organisational decision-making”. It is a study that assists on maximizing the functional
value of the project under study by handling its development from the concept which is
the early stages to its completion by accessing its value system. Kelly et al. (2015) also
justified that Value Management has many definitions from different authors, a selection
of definitions is given here:
Author Definition Year
Mohd Mazlan Che Mat
A rigorous, systematic and innovative
methodology with multi disciplinary
approach to achieve better value and cost
optimisation for projects, products, facilities,
systems and services without sacrificing the
required performance.
2004
AS/NZS 4183
Value Management is a structured and
analytical process in which a prescribed
Work Plan is followed to achieve best value,
and, where appropriate, best value for
money in products, processes, services,
2007

17
A key feature of the methodology is the explicit identification of the
functions of the product that represent value to the user, and the recognition of the
ratio of functions to costs (Stewart, 2010). Kelly et al. (2015) further clarified that the
client for the project would implicitly or explicitly establish a value system for that
project. VM functions to ensure that such construction project will achieve value for
money product without ignoring the client’s need and requirements towards the project.
2.3 Background of VM
From the mid-1970s onwards value management was adopted for use as a value-
for-money measure within the construction industries and the UK have seen the growth
of its development and practice in the 1990s and 2000s (Kelly et al., 2015).
systems and organisations.
Hong Kong Institute of
Value Management,
HKIVM
Value Management as a philosophy,
together with its associated tools and
techniques, emphasizes the need to consider
function and cost in a structured and
systematic way, as part of any strategic
decision process.
2013
Table 2.0 - Definitions of VM, Kelly et al. (2015)

18
2.3.1 Evolution of VM: Value Planning (VP)
Value planning is executed early in the project stage which is before the decision
to build or at briefing stage. Value techniques supports in arriving at a group decision in
terms of the available criteria. It is often a common misunderstanding that the use of VM
techniques is intended solely to resolve a problem (Ashworth & Hogg, 2007).
2.3.2 Evolution of VM: Value Analysis (VA)
Kelly et al. (2015) defined Value Analysis as a structured approach to providing
the required functions at the lowest cost. Additionally it can also be described as an
organised approach to the identification and elimination of unnecessary cost.
2.3.3 Evolution of VM: Value Engineering (VE)
Ashworth and Hogg (2007) described Value Engineering as the use of value
techniques when finished designs or elements of the design will be accessible for study
during the detailed design and construction stages.
2.3.4 Evolution of VM: Value Management (VM)
Value Management is the overarching term used to describe the total philosophy
and degree of the practice and techniques. Value planning, value analysis and value
engineering; together are subsections of value management (Ashworth & Hogg, 2007).

19
2.3.5 Historical Background
During World War II, 1972, a shortage of strategic materials led the allied
governments to require that such materials be reserved for military industries. Lawrence
D. Miles, purchasing agent for a division of General Electrical Company (GEC), was
assigned the task of developing such a system that allows to search alternative solutions
at a lower cost and in 1947 completed the development of a systematic functional
approach to cost reduction, which he called value analysis. A characteristic of value
analysis is the team approach to creatively providing the required function, resulting in
the generation of many alternatives to an existing solution (Kelly et al., 2015).
Ashworth and Hogg (2007) asserted how Value Analysis transformed to Value
Engineering where the use of the Value Analysis concept developed further during the
1940s and 1950s, becoming a procedure that could be used during the design or
engineering stages. The term was initiated in 1954 by the US military and has spread to
the UK manufacturing industry as well as being introduced to the US construction
industry.
The Value Management concept was first used within the UK construction
industry in the 1980s, interest in other parts of the worlds is rising, for example, in Far
East countries such as Hong Kong, and Malaysia. Numerous countries now have
representative organisations that serve to promote the use of value methodology and
control standards of service offered (Kelly et al., 2015).

20
2.3.6 Phases of VM Study (VA > VE > VM)
Kelly et al. (2015) presented the development of value studies in three phases:
Phase 1 – The analysis of existing manufactured components with the aim of providing
those functions satisfied by the component at the least cost.
Phase 2 – A development of the process of analysis to include a study of components
during their design to ensure that when manufactured they precisely satisfy their
requited functions at the required quality and at the least cost. During this phase there
was transference of the concept to construction where the design and construction of
components and elements of construction were similarly analysed.
Phase 3 – This brought about a significant change where the focus was not just on the
component but on entire projects for the satisfaction of an organisational or business
strategy through manufactured products, services and the optimal development of built
assets in the built environment.
2.4 Development of VM
Construction Industry is the sector that enables to contribute to the growth of
other sectors such that it allows the economy to grow from time to time. The position of

21
Architect, Engineer, and Quantity Surveyor is the position that has been well known in
this unique industry and yet many of the people are not aware of Value Management
practice (Lop, Apandi, Kamar, Salleh, Mamter, and Hamdam, 2014).
Kelly et al. (2015) explains the developments in VM practice where new
management practices bring with them the ‘trending’ effect. An idea is launched into the
marketplace as a new service by an entrepreneurial consultant. Knowing the idea, other
consultants offer the same service. Thereafter, the service assumes the trappings of
standardisation, regulation and institutionalisation; clients buy from the finest, which can
now be renowned, and some consultants discontinue the service. VM has been
internationally recognized for almost forty years.
According to McGeorge and Zou (2012), although the application of the
methodology is relatively widespread, its implementation is not without its problems.
Ashworth and Hogg (2007) gave a similar statement which is said that the development
of VM within the profession, despite its recognized benefits, has been slower than ideal.
Notwithstanding the positive trend in the UK in the 1990s, VM may have lost its
momentum during the wave of development. It is now equitably common for
organisations to limit their level of VM involvement in response to a desire for a
minimalist, lower-cost approach resulting in a decrease in the scope of VM studies.
Concepts and applications of VM do not seem to be well embraced in the
construction sector in most of the developing countries. For example, in Malaysia and
China, VM is still in its infancy and has not been well-accepted (Jaapar et al., 2009 )
Additionally, VM is rarely applied in the Southeast Asian construction industry (Cheah
and Ting, 2005).

22
2.4.1 Development of Brunei in the construction industry
Brunei department of economic planning and development (2017), illustrated the
graph below which shows the Brunei GDP from construction:
Figure 2.0 – Brunei GDP in construction
(source: https://tradingeconomics.com/brunei/gdp-from-construction)
To date, it is shown that Brunei is facing lack of ongoing projects since January
2016. Many of the construction projects are currently on hold such that no new housing
projects are likely to be announced. Challenges like these are often to be relied on by the
contractors and consultancy firms to have the ability to reduce project costs, reduce
completion times, and enhance project functions (Oxford Business Group, 2016).

23
2.5 Characteristics of VM
2.5.1 Function-oriented
Kelly et al. (2015) asserted that VM is a function-oriented management
methodology that can fit into a wider organisational context at corporate level,
programme or project level, and service level.
2.5.2 Multi-discipline team approach
VM must be carried out as a team exercise which has always been viewed that
way since the 1940s (McGeorge & Zou, 2012). VM involves the participation of
consultants from all relevant disciplines and client representatives who share a common
interest in the accomplishment of a project. To be successful, the team must have an
appropriate mix of knowledge, skills and experience and, reliant upon workshop
objectives (Ashworth & Hogg, 2007).
2.5.3 Systems oriented
Essential to the value management process is the structured workshop, at which
group decisions are made by the use of a structured job plan to identify and remove
unnecessary costs (Ashworth & Hogg, 2007).
The Job plan is an integral part of value management which is a five-stage
process of organising a study. Namely, Information phase, Analytical phase, Creative
phase, Judgement phase, and Developers’ phase (McGeorge and Palmer, 2009).

24
2.6 Importance of VM
VM has been acknowledged as an important management tool that is essential to
the success of projects in delivering the foundation for achieving value for money in
construction. Hence, it provides practitioners, particularly the ones in the construction
sector, with an excellent opportunity of contributing more to the value added service
they provide (Ashworth & Hogg, 2007).
Jaapar et al. (2009) studied the significance of the VM practice where it is
reassuring to note that 18% of the respondents were very satisfied and 60% of them were
satisfied regarding the output of the VM studies. The analysis also shows that fifty two
per cent (52%) of 149 VM projects documented the saving of the initial cost of projects
of up to 10%, while 25% affirmed they saved up to 30% of the initial cost of projects
after VM workshop applications.
Whyte and Cammarano (2012) interviewed the respondents as their method of
gathering data in which it involves asking to rate the existing value management
procedures in the companies they represent. The findings imply that participating
companies are mindful of applying value management but are still developing the
efficiency of their process. While it was indicated their procedure is effective and has
delivered significant benefits, it is felt that there is room for development by means of
further training.

25
2.6.1 Benefits of VM
VM studies are typically initiated for a number of reasons such as cost overrun of
the project, communication problems, clients not satisfied with their approach to project
management and finally clients who understand and believe that a VM study helps
improving the value of the project. The benefits of VM exercise are the maximum when
implemented at the start of the project, particularly if it's applied during conceptual
development and initial design stages (Kelly et al., 2015).
2.6.1.1 The improvement of Concept Briefing
Ashworth and Hogg (2007) highlights how VM can benefit the client such that
VM is not limited to the resolution of an issue that has happened during design
development but may be used to support in the concept briefing stage. Construction
design is a complex task and in order to simplify the process, the architect tends to adopt
a strategy that results in the early production of sketch proposals. Value planning, which
is carried out in the early stages of a project provides good opportunity for a multi-
discipline team. The VM team will be supported in reaching a group decision in terms of
the conditions for a proposed design.
2.6.1.2 Multi-discipline team
In construction, VM involves a multi-discipline team which looks at a project in
terms of what it needs to do for the greater client body. This functional perspective can
achieve large gains in value. In addition to its multi-discipline benefit, it is excellent as a
team-building exercise in itself helping the team to find a common solution, and
allowing a better shared understanding of a project (Ashworth & Hogg, 2007).

26
2.6.1.3 Elimination of Unnecessary Cost
Jaapar et al. (2009) identified the most important benefits gained from the VM
applications, according to the respondents, were that VM was able to eliminate
unnecessary costs, it produced a better value in a project.
2.7 Application of VM
The VM process has developed certain techniques and can be applied at the
initial project definition and the post planning stages. The VM workshops typically
involve the client whose values are tested, the lead designer and the design consultants
such as architect, civil/structural engineer, M&E services and quantity surveyor
(Fewings, 2013). The execution of VM requires an understanding of the processes
involved and an understanding of how to determine an appropriate VM approach
(Ashworth & Hogg, 2007).

27
2.7.1 Overview of VM Workshops
According to Fewings (2013), Kelly and Male (2002) conducted a table which
shows a continuum of staged events through the life cycle, as shown below:
Figure 2.1 - Continuum of staged events, Fewings (2013)

28
2.7.2 Pre-workshop stage
Pre-workshop stage involves the careful planning and preparation necessary to
ensure success. Ashworth and Hogg (2007) highlight the importance of pre-workshop
stage such that it establishes why the client demands to undertake a VM study and the
expected outcomes. Learning about the problem before action is taken is an important
step in the VM process. This includes the planning of the workshop including core-
activities, duration, location and timing. (Ashworth & Hogg, 2007)
2.7.3 Workshop stage
VM has traditionally been built as a process around the job plan, considered to be
a good and effective decision-making process. Ashworth and Hogg (2007) identified
that the stages of the job plan are the information phase, creative phase, evaluation phase,
development phase and presentation phase.
2.7.4 Post-workshop stage
The completion and monitoring of an implementation plan to ensure post-study
action is taken as an essential component of successful VM. The post-workshop phase is
improved if action determined in the value management study is fully accepted by
participants and is carefully monitored. Personnel need to be identified to follow up the
action outlined in the report and a post-workshop meeting, at which the outcome of the
action phase is reviewed, will promote success. The activities include writing a report of
the activities of the workshop and the implementation of VM. The real measure of
success in a VM study lies in the extent of implementation of the proposals. This will be
dependent upon several factors including the level of client support and commitment, the
attitude of members of the design team and the time available (Ashworth & Hogg, 2007).

29
2.8 Function Analysis
Function Analysis is a creative approach that acts as an aid to finding other
solutions that also satisfy function, which includes looking for the lowest possible cost
(McGeorge & Zou, 2012). It can also be defined, that functional analysis is a basic
process for design in matching the design to the requirements of the client where it is
critical to the briefing process and allows the designer and others to identify what
functions are required by the building (Fewings, 2013).
McGeorge and Palmer (2009) described the functional approach in six steps:
Step McGeorge & Palmer (2009)
1 Investigate the function of the total system
2
Investigate the function of the system components
3
Break the system down into quantifiable parts
4
Consider what each part does
5 Place a “worth” on each part
6
Evaluate and make comparisons
Table 2.1 - Functional Approach in 6 steps, McGeorge and Palmer (2009)
Ashworth and Hogg (2007) further explains the adoption of a functional
approach by Lawrence Miles (1972), stating that it involved the functional analysis of a
component in terms of what it did and searched for a substitute to the provision of that
functional requirement at a lower cost. Its benefits are well recognised and considered
by some to be vital to the process. When looking for alternatives, there is a need to
search for something that will deliver the required function rather than trying to find a

30
substitute for the previous solution, establishing the true functions of a product and
considering the costs of each function identified can in itself be an illustrative exercise.
The failure to provide buildings or parts of buildings that properly perform their
functions is a common problem in the construction industry and it is this that forms the
basis of function analysis. In the context of function analysis, it is assumed there is a
close relationship between the provision of function and the achievement of value.
Where all functions are identified at the lowest achievable cost there is good value.
Where no function is achieved or where function is achieved at too great a cost, there is
little or no value (McGeorge & Zou, 2012).
2.9 Team Organisation
The contribution to every member of the VM team is essential to ensure the
success of the project. In a meeting with the facilitator and members of the design team
and the client organisation, information is required in the workshop by identifying the
key information collected to all study participants (Ashworth & Hogg, 2007).
2.9.1 VM Facilitator
The VM facilitator is the team leader that requires a skill base that includes an in-
depth knowledge of function analysis, group and team building, evaluation of project
alternatives and knowledge of construction. It is unlikely that any member of the design
team would have these skills and it will probably be necessary to call on an external
facilitator (McGeorge & Zou, 2012).

31
Ashworth and Hogg (2007) stated that the facilitator is central to the success of
the VM process. The role of the facilitator includes advising upon the selection of the
VM team, co-ordinating pre-workshop activities, deciding upon the most appropriate
timing and duration of workshops, workshop management and preparing reports.
Ashworth and Hogg (2007) also identified the variety of skills that are needed in a
workshop management which are:
Author Skills
Ashworth & Hogg
(2007)
 The ability to determine and adhere to an appropriate
agenda
 Identifying and gainfully using the characteristics of team
members
 Promoting the positive interaction of participants
 Motivating and directing workshop activity
 Overseeing the functional analysis process
 Encouraging an atmosphere conducive to creativity
whilst at the same time maintaining a disciplined
structure
Table 2.2 - Facilitator skills, Ashworth & Hogg (2007)
At commencement of the workshop it is usual for facilitators to attempt some
team-building exercises. For example, asking participants to explain what they consider
to be the most important project objective or constraint (Ashworth & Hogg, 2007). It is
necessarily chaired by a neutral facilitator who is able to push for honest answers to
awkward questions (Fewings, 2013).

32
2.9.2 Selection of VM Team
An important consideration when selecting a value management team is whether
to use the existing design team members or an independent workshop team (Ashworth &
Hogg, 2007). The VM team should not be allowed to become too big. To date, there has
been no confirmation into the optimum size of teams for a VM study but recent studies
suggests eight as a maximum (McGeorge & Zou, 2012).
McGeorge and Palmer (2009) added that the selection of VM team may,
alternatively, be a mixture of both the design team and the external team, either with or
without the presence of the client. In addition specialists may be invited if the project
has particular problems and a specialist input is required.
2.9.3 External Team
The external team is an independent team that are new to the project and have
had no previous involvement in it (McGeorge & Palmer, 2009).

33
McGeorge & Zou (2012) further explains the advantages and disadvantages of using an
external team, as shown below:
Advantages Disadvantages
McGeorge & Zou
(2012)
 The team can be
selected for their
particular skills whereas
the design team is
already established.
 Provides reassurance for
the client that the design
produced by the design
team is a good one.
 The external team lack
depth in their
understanding of the
project.
 The external team is
expensive
 The design team has
already formed and
overcome many of the
growing problems that
groups experience. An
external team will take
time to come together.
Table 2.3 – External team, McGeorge & Zou (2012)
2.9.4 DesignTeam
For an effective VM exercise, it is preferable if some of the design team
members of the project under consideration are involved as members of the team. The
original design team can provide expert second opinions in a VM study in which it is
vital in complex projects (Oke & Aigbavboa, 2017). The lack of use of the external team
suggests that this may be rather academic, considering that the participation of
independent design consultants would appear to be unusual. Use of the existing design
team brings numerous benefits to the proceedings. Where existing project members are

34
used, there is less likelihood of difficulties with the implementation of ‘outsiders’ ideas,
costs are curtailed, there is a saving in time due to the existing knowledge state of the
project and it could prove to be a beneficial team building exercise. The principles and
philosophy of VM provide surveyors with additional tools and techniques, and possibly
new ways of thinking, all of which may be used in other areas of professional activity
(Ashworth & Hogg, 2007)
Despite its benefits, Oke and Aigbavboa (2017) highlights the issues of selecting
the original design team such that it will be risky if the existing team members are
reluctant to agree and acknowledge changes to the project that arise from the exercise.
Another problem is the establishment of criteria for the selection of members of the
original team since not all can be invited to be part of a value management team. It will
be too large, which is one of the barriers to an effective team. The cost of paying for
their service is another factor to be careful of. Thus, it is necessary to ensure that not
only ‘important’ or ‘influential’ members of the design team are chosen but that those
who have the time and capability to contribute positively to the success of the exercise
are considered as members.

35
2.10 Problems of low use of VM implementation
Ashworth and Hogg (2007) affirmed that the general claims of the success of
VM in financial terms suggest that for a VM fee of 1%, a 10% to 15% cost saving can
be achieved. It is hard to imagine that practitioners and clients would not use VM, in the
belief that this level of result could be attained.
The VM study has not been involved in most construction projects due to the
lack of knowledge on its practice. Even though it had been recognised for more than 25
years in Malaysia construction industry, the application of this management approach is
still at low numbers (Lop et al., 2014). Knowledge of value methodology is significant
to the design team, either from the perspective of actual service provision, or from an
appreciation of its benefits and application when advising clients. VM are often
misinterpreted by quantity surveying practitioners where it relates to the establishment
of cost reductions which is irrespective to function (Ashworth & Hogg, 2007).
Lack of knowledge about VM is the main focal point that brings other problems
on the implementation of VM such as when there are no opportunities given to employ
creative thinking techniques to develop alternative solutions (Bown 2010). Lai (2006),
Cheah and Ting (2005), Li and Ma (2012) and, Whyte and Cammarano (2012) identified
lack of knowledge as the main factor that hinders the application of VM.

36
2.10.2 Resistance to Change
A major disadvantage of having the existing design team members in the
workshop could be the domination of original design concepts, if already recognized,
which may be strongly defended by the design team. The possibility of this occurring is
supported by research into design practice and it is something that facilitators need to be
aware of (Ashworth & Hogg, 2007). It can be risky if the existing team members are
reluctant to approve and accept changes to the project that arise from the exercise (Oke
& Aigbavboa, 2017). The related parties involved in the exercise sometimes tend to have
negative beliefs towards the VM process, which resulted in poor team working (Jaapar
et al., 2009). More recently, Fard et al. (2013) identified five factors that hinders the
implementation of VM in the Iranian construction industry in which two of them are
resistance to change and negative attitude.
Lop et al. (2014) declared that VM has been well known in Malaysia for its
recent studies but still faces barriers in implementing, particular due to the knowledge of
VM only in theory which has never been put to practice. Furthermore, Jaapar et al.
(2009) confirmed that 63% of respondents did possess a good level of awareness
towards the VM concept in Malaysia construction industry by the quality of feedback
gathered from the questionnaire and yet many of the responses indicated that there is a
lack of VM practice. Many of the organisations had no experience in any workshop in
the application of VM study where the majority (51%) of the respondents did not
practice the VM methodology in their working environment.

37
2.10.4 Too expensive to carry out VM
The cost of paying for their service is a factor to be considered, which is one of
the barriers of VM application (Oke & Aigbavboa, 2017). Kim et al. (2016) identified
that lack of investments to conduct VM in construction companies are highly rated by
the respondents for the low use of VM.
The success of a value study is clearly dependent on the facilitator (Kelly et al.,
2015). Jaapar et al. (2009) indicated that poor facilitation skills is one of the contributing
factor of the problems faced during VM workshop.
2.10.6 Insufficient amount of time to implement VM
According to Whyte and Cammarano (2012), time limitation is considered as one
of the biggest factors that hinder the implementation of value management. It was stated
by several interviewees that design procedures do not allow for sufficient time. Li and
Ma (2012) considered lack of time to implement VM as not a severe factor in VM
application but regardless of that statement it is still a factor that affects the decision to
implement. Kelly et al. (2015) agreed that the time spent prior to undertaking a value
workshop is vital for the success of a study overall. Some suggests that lack of time to
implement VM remains a serious impediment (Cheah and Ting, 2005).
Kim et al.(2016) identified that the lack of VM experts was ranked as the
primary hindrance by the respondents, implying that VM experts are of paramount
importance for the development of VM in the construction industry. Li and Ma (2012)

38
made a similar statement where the lack of VM experts was also found to be a major
impediment in the development of VM in China.
2.10.8 Lack of local VM guidelines, standards and specifications
Kim et al. (2016) ranked the lack of local VM guidelines as the third for the low
use of VM. It is essential that local VM guidelines, and standards be established to
promote the widespread application of VM in the construction industry. Practical
guidelines for implementing VM are needed because not all practitioners are familiar
with VM when first attempting to implement it. Whyte and Cammarano (2012) also
identified that ambiguous guidelines and specification as the third highest issue affecting
VM in their study followed by lack of commitment and support.
The lack of support and active participation of owners and stakeholders implies
that VM development requires the active involvement of all parties. Owner support was
determined to be the one of the most critical success factor for VM application because
the full support has been discussed as to be the only possible way to facilitate the
acceptance of VM and overcome opposition to its application (Kim et al., 2016).
Saifulnizam (2010) advocated that participation of all team members is an
essential element of the construction project in terms of supporting experts in getting the
best value for the project. Participation leads to commitment, which in turn leads to
ownership.
VM is unlikely to succeed and prove its significant contributions without the
support from the top level management. Plenty of effort has to be done to encourage and
persuade these people and perhaps actively involve in the workshop itself (Che Mat,
2004).

39
Ashworth and Hogg (2007) mentioned that if the major reason for the low use of
value management is that clients do not request it, the reason could be because it likely
that many clients may be unaware of VM, particularly those that are smaller. It appears
that many practitioners, both with and without value management experience, believe
that the quantity surveyor already provides the VM function as part of the quantity
surveying role.
Value has several definitions, varying from ‘that which renders anything useful
or estimable’ to, more simply, ‘price’. It is because of these different perceptions
embodied within the word value that VM is often hard to understand and it is possibly
for this reason that it has been confused with cost planning, buildability and cost saving.
This confusion has led to a lack of use of VM (McGeorge & Zou, 2012).
Fewings (2013) asserted that some participants see VM as no more than a multi-
disciplinary cost reduction exercise, with little precision in the focus on value and
function analysis, with little creative thinking and the implementation of solutions based
on previous experience.
Bowen (2010) indicated that the use of VM among South African quantity
surveyors does not reach their testified levels of awareness where he also stressed that
their awareness appears to relate more to older understandings of value engineering,
rather than to a more up-to-date developments of VM and its application.

40
2.11 Solutions of low use of VM implementation
It is important to know that there are solutions or recommendations of the
application of VM in the construction industry as it provides an incentive to the client
and design team to strategically tackle the problems of VM application and thus able to
implement VM to its full potential.
The selection of team members is of great importance, as any misconduct will
incur extra cost and time to the project itself. The success of a value study is clearly
dependent on the facilitator, the value study must be carried out in such a manner that
facilitator can adapt to the emerging issues to design flexibility, especially leading the
workshop with other VM practitioners. The cognitive skills of the facilitator is a factor
to be considered when selecting (Kelly et al., 2015).
2.11.2 Local Guidelines for VM, better standardisation
Sabiu (2016) identified that a number of respondents gave a suggestion of
providing local guidelines and better standardisation as one of the ways to minimize the
factors hindering the implementation of VM.
Providing local guidelines for VM enables the industry to apply VM
systematically and effectively. Practical guidelines for implementing VM are needed
because not all practitioners are familiar with VM when first attempting to implement it.
Furthermore, practical guidelines for practitioners ensure compliance and alignment
with the characteristics of the domestic construction industry Kim et al. (2016).

41
Malla (2014) made recommendations of VM implementation which includes
providing an incentive clause for a VM re-proposal in the contract document. The
incentive clauses for sharing the equitable savings and risks for implementing VM, can
encourage owners and stakeholders to apply VM in their projects (Cheah and Ting,
2005).
There is a need to increase public awareness of VM concept in the construction
industry by organising trainings, workshops or seminars to the public. Appropriate
seminars or conferences should be conducted in the construction industry to disseminate
the concept and benefits of VM study so that they can accept it instead of having the
misconception that it is difficult and complex to implement. Jappar et al. (2009)
indicated that promotion of VM should be more aggressive especially in producing
seminars as there is a low percentage on formal practice. One of the suggestions in a
study by Sabiu (2016) from the respondents suggest that VM should be vigorously
taught to professionals by organising workshops/seminars.
Institutional publication is one of the medium to spread knowledge and related
information. Comprehensive and interesting contents are necessary to be provided to
gain interest of the reader. Web contents of institution can serve as a ‘one-stop’ data
centre to obtain information related to VM. Sabiu (2016) indicated that one of the
suggestions by the respondents for minimizing the factors influencing VM
implementation is to conduct research, and publications on VM importance and value.

42
It is clear that the time factor will influence the implementation of VM study.
The decision to implement VM will have to be made in an earlier stage to attain cost
savings and improvement in value for the overall project. Time spent prior to
undertaking a value workshop is vital for the success of a study overall (Kelly et al.,
2015). Whyte and Cammarano (2012), Li and Ma (2012), and Cheah and Ting (2005)
ascertained that time limitations is a factor to be considered for the implementation of
VM.
Greater effort should be made to train and educate industrial practitioners and industry
owners about VM (Kim et al. 2016). Nothing reinforces VM more effectively than
success gained through practical experience of its use. One of the keys to a successful
VM is the management of the facilitator in the whole VM process. Well trained
facilitator will ensure a successful VM procedure. The facilitator should focus on
people’s interests and not their positions (CIOB Institute, 2013). It is concluded that
clients view good practitioners as the most critical and essential in delivering VM
service (Kelly et al., 2015).

43
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
This chapter delineates the means of research pertained to accomplish the aims
of the study stated in Chapter 1 which is to analyse why value management is not widely
used as well as the solutions of implementing it and the design team’s perception
towards its practice in the Bruneian construction industry. This chapter firstly introduces
the structures of the research procedure, research design and research structure followed
by the explanation of research methods, which involves sampling, questionnaire design
and analysis method.

44
3.2 ResearchProcess
The research process has been categorized and thoroughly planned to achieve the
targeted aim and objective set out. The questionnaire will be allocated through an online
survey to professionals in the construction industry, specifically to the design team.
Figure 3.0: Research Process
Identify the area of interest
Identify the issues, problems and scope of study
Articulate research questions and objectives
Conduct literature review
Collect and collate data and information
Analysis and synthesis of data
Writing up of research findings

45
Step 1 - Identify the area of interest
The first step in the research process is to identify the area of interest that needs
to be explored. Availability of resources is significant and necessary to be given
sufficient consideration in order to ensure feasibility of the research.
Step 2 - Identify the issues, problems and scope of study
Through reading of articles, websites, books and journals regarding value
management in the construction industry, the researcher establishes the current issues
and formulates the research problems.
Step 3 - Articulate research questions and objectives
The rise of research questions leads to the establishment of the objectives. The
research objectives attained are:
iv) To investigate why VM is not widely used in the Bruneian construction industry.
v) To explore the solutions of implementing VM.
vi) To identify the design team’s perception towards value management in Brunei
Darussalam.

46
Step 4 - Conduct literature review
In order to acquire sufficient data for further understanding of the research,
studying previous researches related to the research objectives are essential. The
information can be gathered via books, thesis, websites, and journals. This step of the
process will educate the researcher on the problem areas and provide the information
required to formulate the next steps.
Step 5 - Collect and collate data and information
In this research, questionnaire survey is implemented as a tool of data collection
with quantitative methodologies. The targeted population will need to be identified
which can be done through sampling. The questionnaire survey is arranged based on the
research objectives in the form of sections. The collection of data will provide necessary
information needed to answer the research questions.
Step 6 - Analysis and synthesis of data
When sufficient number of respondents is collected, the data attained is to be
analyzed so that the research question can be answered. The analyst will then review the
data through comparative statistics in the form of charts, graphs and other statistical
tools.

47
Step 7 - Writing up of research findings
The final stage of the research process will include proposing different solutions
and recommendations in summarization of the information obtained from the research.
The researcher can offer his prediction and his review on whether the research aims and
objectives were successfully achieved.

48
3.3 ResearchDesign
OBJECTIVES TYPES OF DATA SOURCES OF
DATA
METHOD OF
COLLECTION
1. To investigate why
value management is
industry.
The problems faced that
prevents the application of
Value Management.
Articles
Books
Journals
Websites
Reading
Questionnaires
Analysis
2. To explore the
solutions of value
management
implementation
The solutions that can face
the problems that prevents
the application of Value
Management.
Articles
Books
Journals
Websites
Reading
Questionnaires
Analysis
3. To identify the
design team’s
perception towards
value management in
Brunei Darussalam.
Evaluate the level of
perception of the design
team after understanding the
problems and solutions
mentioned in objective 1
and 2. The level of
perception should be on a
scale of whether to consider
applying VM or not.
Articles
Journals
Websites
Reading
Questionnaires
Analysis
Table 3.0 - Research Design

49
3.4 ResearchFramework
Figure 3.1 - Research Framework
In the research framework described above in Figure 3.1, the problems and
solutions will serve as a platform for identifying the design team’s perception towards
VM in the Bruneian construction industry.
THE PERCEPTION OF VALUE MANAGEMENT IN THE
BRUNEIAN CONSTRUCTION INDUSTRY
Objective 2
To explore the
solutions of
implementing value
management.
Objective 1
To investigate why
value management is
industry.
Objective 3
To identify the design
team’s perception
towards value
management in Brunei
Darusasalam.
Problems:
Lack of Knowledge
Resistance to Change
Lack of Experience
Too expensive to carry out
Poor facilitation skills
Insufficient amount of time
to implement
Lack of VM experts
Lack of local VM guidelines,
standards and specifications
Lack of commitment/support
Lack of Awareness
Research Aim: To study the perception of how the design team considers VM in
Brunei Darussalam
Solutions:
Careful selection of VM team
Local Guidelines for VM,
better standardisation
Provide incentive clause
Conference and Seminar
Institutional Publications,
Websites
Early decision making
Adequate training

50
3.5 ResearchTechniques
The nature of this study will be in quantitative method. Hence, this section
illuminates the research techniques undertaken in this study which consists of sampling,
design of questionnaire, and analysis method.
3.5.1 Scope and Sampling
The course of selecting a specific group from a population of interest is known as
sampling, which is a basic requirement for a research study. The purpose of this basic
requirement is for generalizing the research results back to its population (William,
2006). Sampling procedure begins with identifying the population interest followed by
setting up a sampling frame which indicates the group of people to draw a research
sample. The procedure ends with setting a sampling method; there are various kinds of
methods such as Cluster Sampling, Stratified Sampling, Simple Random Sampling (SRS)
and Systematic Sampling.
For this study, there are a number of parties involved in the construction industry,
namely, the architects, M&E engineers, structural engineers, quantity surveyors,
developers, contractors and clients. The population is regarded as the researcher’s
limitation to consider having all the parties involved in the study. Hence, the design
team is the ‘sample’ referring as the small sub-group of people in the construction
industry that the researcher chose for the study.

51
3.5.2 Sampling Size
As cited in Kenpro (2012), Krejcie and Morgan (1970) created an article where
they used a formula to determine the sample size for research activities.
𝑠 = 𝑋2
𝑁𝑃(1 − 𝑃) ÷ 𝑑2( 𝑁 − 1) + 𝑋2
𝑃(1 − 𝑃)
Where,
s = required sample size.
𝑋2
= the table value of chi-square for 1 degree of freedom at the desired confidence
level (3.841).
N = the population size.
P = the population proportion (assumed to be 0.50 since this would provide the
maximum sample size).
d = the degree of accuracy expressed as a proportion (0.05).

52
The population size for architects, quantity surveyors and engineers is identified
in reference to Pertubuhan Ukur Jurutera & Arkitek (PUJA), (PUJA Brunei, 2017).
There are a total of approximately 64 architects, 72 quantity surveyors, and 167
engineers. By adapting to this formula, the sample size can be shown below:
Architects:
𝑠 = (3.841)(64)(0.50)(1 − 0.50) ÷ (0.05)2(64− 1) + (3.814)(0.50)(1− 0.50)
= 55
Quantity Surveyors
𝑠 = (3.841)(72)(0.50)(1 − 0.50) ÷ (0.05)2(72− 1) + (3.814)(0.50)(1− 0.50)
= 61
Engineers
𝑠 = (3.841)(167)(0.50)(1 − 0.50) ÷ (0.05)2(167− 1) + (3.814)(0.50)(1− 0.50)
= 117
Thus, the sampling size is identified which is a total of 233 of questionnaires
required to send.
3.5.3 Designof Questionnaire
A questionnaire is a list or a set of questions that permits researchers to collect
and record data that will serve as a guide in accomplishing their research aims (Best,

53
2012). In this study the questionnaire is considered to be a quantitative research method.
Questionnaires should have a definite purpose related to the main objectives of the
research being undertaken (Kirklees council, 2006).
Well-defined and straightforward are two factors that should be exposed in the
survey questions. It is important to avoid using jargons which more often can be seen as
a futility to the respondents. The structure of the questionnaire begins with section A
which is the demographic profile, followed by three other sections representing the three
research objectives in this study. In section A, background information regarding the
research and information on participants should be provided which includes the aim of
the questionnaire, confidentiality and voluntary responses (Denscombe, 2010). The use
of close-ended questions is adopted using the Likert scale approach. Additionally, a
single multiple-choice question located in section B is adopted to identify an
individual’s own opinion on the most significant factor of why VM is not widely used.
Respondents are given an ordinal scale of 1 to 5 which signifies the level of agreement
from “Strongly Disagree” to “Strongly Agree” in section B and D. Section C also uses
an ordinal scale of 1 to 5 but representing the level of significance which ranges from
“Not Significant” to “Very Significant”.
A web-based questionnaire (Google form) is implemented for this research,
located on a host site (Google) where the respondents are able to approach it through the
website with computers and also mobile phones. This online-based method is cost
effective compared to using paper-based questionnaires and it also brings other valuable
benefits, such that respondents can answer and submit the survey with only a few clicks
while the researcher acquires the responses in the form of spreadsheet or database with
readymade charts or graphs which updates automatically every submission by the
respondents. The selected respondents are invited to participate in the survey via email
with hypertext link attached in it.

54
3.5.4 Analysis Method
3.5.4.1 Average Index
The data collected from the questionnaire is analysed by using Average Index
(AI) analysis method as below:
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑑𝑒𝑥 =
∑(1𝑥1 + 2𝑥2 + 3𝑥3 + 4𝑥4 + 5𝑥5)
𝑁
Where,
𝑥1 = Number of respondents for Strongly Disagree / Not Significant
𝑥2 = Number of respondents for Disagree / Slightly Significant
𝑥3 = Number of respondents for Slightly Agree / Moderately Significant
𝑥4 = Number of respondents for Agree / Significant
𝑥5 = Number of respondents for Strongly Agree / Very Significant
𝑁 = Represent the total number of respondents
AVERAGE INDEX LEVEL OF AGREEMENT
LEVEL OF
SIGNIFICANCE
0.00≤Average value≥1.50 Strongly Disagree Not Significant
1.50 Average value 2.50 Disagree Slightly Significant
2.50 Average value 3.50 Slightly Agree Moderately Significant
3.50 Average value 4.50 Agree Significant
4.50 Average value 5.00 Strongly Agree Very Significant
Table 3.1 - Average index rating scale

55
3.5.4.2 Ranking
In order to rank the agreement/significance of each problems and solutions for
average index analysis, the factors are determined accordingly and prepared in
descending order depending on their values. Furthermore, a particular question in
Section B which is a self-opinion question, asking for the most significant factor of why
VM is not widely used, is ranked through percentage of respondents and not average
index.

56
3.6 Summary of ResearchMethodology
Chapter 3 revealed the entire research method applied to accomplish the research
objectives. The aspects mentioned in this chapter consist of research procedure, research
design, research framework; and research techniques such as sampling, design of
questionnaire, and analysis method.
The research procedure comprises of seven steps from the identifying the area of
interest to the summarisation of research findings. The research design mentioned the
three objectives which include sources and data collection approaches. The research
framework establishes the relation of the research aim with its objectives.
Accordingly, as this study is adapting in a quantitative manner, questionnaire is
chosen as the tool of data collection with the use of an online survey. Closed-ended
questions are asked in the questionnaire with the Likert scale approach. The chosen
respondents are requested to contribute in the survey via email invitation with
attachment of Google Form hypertext link. Lastly, Average Index (AI) analysis method
is preferred for data analysis.

57
CHAPTER 4
DATA ANALYSIS
4.1 Introduction
This chapter is about the analysis of the data collected from multiple responses.
It involves the data analysis of collected data from questionnaires distributed online to
respondents of the design team in accordance to the chapter and method mentioned in
chapter 3. The analysis results shall be examined further through charts and the findings
will then be evaluated in chapter 5.

58
4.2 Data collection
This research is based on the collection of data from two types of data. Primary
data is the first hand information gathered during a research whereas secondary data is
the data obtained from another source. The secondary data collected for this research can
be found in the literature review. The Secondary data includes information from articles,
journals, books and other academic researches. The secondary data of this research
examines the overview of the factors that the researcher needs to research and
accomplish by the end of the study. The primary data will be managed as an online
survey sent via email to the respondents through which they will be able to complete the
survey.
4.3 Response Rate
In accordance to the sampling size deprived previously, a sampling size of 233
questionnaires was required to distribute to architects, quantity surveyors, M & E
engineers, and structural engineers in Brunei Darussalam. A total of 72 responses are
obtained, which is 31% of response rate. The acquired data are evaluated and presented
in sequence of the sections in the questionnaire, which is from Section A to D. Figure
4.0 illustrated the response rate in the form of pie chart as shown below:

59
Figure 4.0 – Response Rate
4.4 Section A: Demographic Profile
4.4.1 Job Position
Figure 4.1 displays the responses of the respondent’s job position in the design team
Figure 4.1 – Job Position
25.0%
25.0%19.4%
30.6%
Job Position
Architect
Structural Engineer
M&E Engineer
Quantity Surveyor
31%
69%
Response Rate
Response Rate
Non-response Rate

60
Amongst the responses collected from the questionnaires, a majority of the data
are obtained from quantity surveyors which is 30.6%, followed by architect and
structural engineer who are equal in numbers with 25% each, and lastly M&E engineer
with 19.4% of the respondents.
4.4.2 Working experience
Figure 4.2 displays the respondents’ years of professional experience.
Figure 4.2 – Working Experience
Almost half of the respondents have more than 21 years of experience with a
percentage of 40.3%. 27.8% and 22.2% of respondents have a working experience of 11
to 20 years and 6 to 10 years respectively. Other respondents with 5 years and below of
working experience occupy a percentage of 9.7%. The survey focuses on the research
study which is the perception of value management and thus is in need of the different
years of experience that a professional has in order to achieve the objectives.
9.7%
22.2%
27.8%
40.3%
Below 5 yrs
6 - 10 yrs
11 - 20 yrs
21 yrs and above
Working Expereince
Working Expereince

61
4.4.3 Value Management Practice
Figure 4.3 – Have practiced VM
According to Figure 4.3, it shows that majority of the respondents have practiced
Value Management (65.3%) whereas others have not had any experience in its practice
(34.7%). To conclude, 65.3% of the respondents have been involved with value
management in the construction industry.
65.3%
34.7%
Have practiced VM
Yes No

62
4.4.4 Feedback on VM practice
Figure 4.4 displays the respondents’ feedback on VM practice, which is directed to only
those who have experienced it.
Figure 4.4 – Feedback on VM practice
100% of respondents in this figure are the 47 respondents who said to have
practiced VM whereas the other 25 respondents are not involved in this particular
analysis. A majority of respondents’ feedback on VM practice is Successful with a
percentage of 66%. Only one of the 47 respondents considers VM practice to be Very
Successful which represents 2.1%. The 2nd highest percentage have shown that many
have considered VM practice to be Unsuccessful which occupies 25.5%, followed by 6.4%
of those who regarded that the practice was Very Unsuccessful in their experience. To
conclude, 25.5% of Unsuccessful is considered to be high for a management practice
that is meant to bring good value and other benefits.
6.4%
25.5%
66.0%
2.1%
Very Unsuccessful
Unsuccessful
Successful
Very Successful

63
4.4.5 Current knowledge on VM
Figure 4.5 displays the respondents’ current knowledge on VM
Figure 4.5 – Current knowledge on VM
38.9% of the respondents are Slightly knowledgeable on VM, followed by 31.9%
who are More knowledgeable. Five respondents have complete understanding on VM
application which represents 6.9%. A percentage of 18.1% shows the respondents who
are Less knowledgeable on VM, followed by three respondents (4.2%) who deemed to
have said that they have no knowledge of VM. The highest percentage lies on the
Slightly knowledgeable category which shows that most of the respondents may have
only known VM in general, not more and also not less.
4.4.6 Summary of Demographic Profile
No knowledge of VM 3
Less knowledgeable 13
Slightly knowledgeable 28
More knowledgeable 23
Fully understand the application 5
0
5
10
15
20
25
30
No.ofrespondents
4.2%
18.1%
38.9%
31.9%
6.9
%

64
Table 4.0 displays the summary of Section A, Demographic Profile:
A. Demographic
Profile Options Frequency Percentage (%)
Job position
Architect 18 25%
Structural Engineer 18 25%
M&E Engineer 14 19.4%
Quantity Surveyor 22 30.6%
TOTAL 72 100%
Working
experience
Below 5 years 7 9.7%
6 – 10 years 16 22.2%
11 – 20 years 20 27.8%
21 years and above 29 40.3%
TOTAL 72 100%
Have practiced
Value
Management
Yes 47 65.3
No 25 34.7
TOTAL 72 100%
Feedback on VM
Practice
Very Unsuccessful 3 6.4%
Unsuccessful 12 25.5%
Successful 31 66%
Very Successful 1 2.1%
TOTAL 47 100%
Your current
knowledge on VM
No knowledge of VM 3 4.2%
Less knowledgeable 13 18.1%
Slightly knowledgeable 28 38.9%
More knowledgeable 23 31.9%
Fully understand the
application 5 6.9%
TOTAL 72 100%
Table 4.0 – Section A : Demographic Profile

65
4.5 Section B: Why VM is not widely used
Figure 4.6 – Lack of Knowledge
As shown in Figure 4.6, about 38.9% of the respondents slightly agree on Lack
of Knowledge being a factor of why VM is not widely used followed by 34.7% who
agreed more and 9.7% who strongly agreed on this particular factor. On the other hand
15.3% of the respondents disagreed on that matter which comes from a majority of those
who have worked more than 21 years and above, followed by 1.4% who strongly
disagreed. As mentioned before, a majority of those who have worked more than 21
years and above have shown disagreement on Lack of Knowledge. For ones who have
worked long in the construction industry should have some knowledge on VM even
without practice.
1.40%
15.30%
38.90%
34.70%
9.70%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Lack of Knowledge
Strongly Disagree Disagree Slightly Agree Agree Strongly Agree

66
4.5.2 Resistance to change
Figure 4.7 – Resistance to change
As illustrated in Figure 4.7, most of the respondents indicated their level of
agreement as agree which is about 40.3%, 33.3% of those who slightly agree and 16.7%
for the ones who strongly agree. Only 1 respondent strongly disagree on this part which
is 1.4% whereas 8.3% of respondents who disagree. With a mix of those who agree and
strongly agree, more than half of the respondents have shown a higher level of
agreement on this factor. This shows that in some of the respondents’ experience, some
team members are unwilling to agree and accept changes that arise from this VM
exercise.
1.40%
8.30%
33.30%
40.30%
16.70%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Resistance to change

67
Figure 4.8 – Lack of Experience
According to Figure 4.8, the graph shows that 38.9% of the respondents selected
agree and is of the highest percentage in other scales. The second highest is 31.9%
which are those who strongly agree followed by 19.4% who slightly agree, 8.3% who
disagree, and 1.4% who strongly disagree. To conclude, a majority of the respondents
are on the higher side of the level of agreement in which, excluding those who voted
slightly agree, covers up 70.8% of the respondents. This shows that many have agreed
that there is a lack of VM practice even though some people are aware of this
application, which holds them from ever putting it into practice.
1.40%
8.30%
19.40%
38.90%
31.90%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Lack of Experience

68
4.5.4 Too expensive to carry out
Figure 4.9 – Too expensive to carry out
As presented in Figure 4.9, 34.7% of the respondents indicated their level of
agreement as agree, whereas those who voted slightly agree is of the second highest
percentage, which is 33.3%. About six respondents chose strongly agree which
represents 8.3%. Almost a quarter of the respondents disagree with 22.2% and 1.4% for
strongly disagree. To conclude, 16 (22.2%) of the respondents disagreed on the factor
that VM is too expensive to carry out but the majority (34.7%) also agreed that some
members feared that in a VM practice, it would not be successful considering that they
have to initially invest on its exercise.
1.40%
22.20%
33.30%
34.70%
8.30%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Too expensive to carry out

69
Figure 4.10 – Poor facilitation skills
As shown in Figure 4.10, it indicates the level of agreement where it is 43.10%
for slightly agree, 30.6% for agree, and 5.6% for strongly agree. Moreover, in the
disagreement part, 19.4% of the respondents disagree and 1.4% for strongly disagree. To
sum it up, The majority have voted for slightly agree which shows that they do not see
poor facilitation skills as the main factor but somewhat agree that it plays some part on
why VM is not widely used that they think the facilitator are not skilled enough to
organize and manage the workshop.
1.40%
19.40%
43.10%
30.60%
5.60%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Poor facilitation skills

70
4.5.6 Insufficient amount of time to implement
Figure 4.11 – Insufficient amount of time to implement
As illustrated in Figure 4.11, 41.7% of the respondents agree with this factor,
31.9% is the second highest which is slightly agree, 13.9% for disagree, and the least
highest which is 12.5% for strongly disagree. To conclude, many have agreed that
insufficient amount of time to implement is a factor to be considered for why VM is not
widely used with the majority (41.7%) who chose agree and 12.5% who strongly agree.
Only 10(13.9%) respondents disagree and 0% for strongly disagree.
0.00%
13.90%
31.90%
41.70%
12.50%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Insufficient amount of time to implement

71
Figure 4.12 – Lack of VM experts
According to the figure 4.12 above, it can clearly be seen that 47.2% is the
highest where the respondents chose agree whereas 22.2% for both strongly agree and
slightly agree. There is a low level of agreement for disagree and strongly disagree
which is 6.9% and 1.4% respectively. With 22.2% of the respondents who strongly agree,
it shows the full agreement that this is a major factor for why VM is not widely used
because there are hardly any VM specialists. Furthermore, 47.2% voted for agree which
covers almost half of the respondents.
1.40%
6.90%
22.20%
47.20%
22.20%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Lack of VM experts

72
4.5.8 Lack of local VM guidelines, standards and specifications
Figure 4.13 – Lack of local VM guidelines, standards and specifications
As presented in Figure 4.13 above, it can clearly be seen that 48.6% is the
highest where the respondents chose agree whereas 26.40% for strongly agree and 19.40%
for slightly agree. There is a low level of agreement for disagree and strongly disagree
which is 4.2% and 1.4% respectively. Similar to previous analysis, more than half of the
respondents showed a high level of agreement with 48.60% for agree and 26.40% for
strongly agree which explains that it is a major factor to be considered for why VM is
not widely used because of a lack of local VM guidelines, standards and specifications.
1.40%
4.20%
19.40%
48.60%
26.40%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Lack of local VM guidelines, standards and specifications

73
Figure 4.14 – Lack of commitment / support
As shown in Figure 4.14, the respondents indicates their level of agreement
where 36.10% is of the highest for those who agree, 29.2% for slightly agree, 19.4% for
strongly agree. In the disagree segment, 13.9% of disagree and 1.4% for strongly
disagree. To conclude, a majority (36.1%) of the respondents chose agree but there are
also a number (10) of respondents who disagreed on this factor where there is a lack of
support from members who participates in the exercise.
1.40%
13.90%
29.20%
36.10%
19.40%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Lack of commitment / support

74
Figure 4.15 – Lack of Awareness
As illustrated in Figure 4.15, 34.7% of the respondents indicated their level of
agreement as agree, followed by 31.9% for slightly agree, and 25% for strongly agree. In
the disagreement sector, 6.9% voted for disagree and 1.4% for strongly disagree. To sum
it up, 25% for strongly agree is very critical as it shows those who fully agree on the
statement where they agree that some members are unaware of VM whereas only
5(6.9%) respondents disagreed and only 1(1.4%) who strongly disagree.
1.40%
6.90%
31.90%
34.70%
25.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Lack of Awareness

75
4.5.11 Summary of Why VM is not widely used
Table 4.1 displays the summary analysis of Section B, Why Value Management is not
widely used
1 = Strongly Disagree
2 = Disagree
3 = Slightly Agree
4 = Agree
5 = Strongly Agree
B. Why Value Management
is not widely used
Frequency Analysis
Average
Index
Rating
scale
Rank1 2 3 4 5
Number of Respondents
Lack of local VM guidelines,
standards and specifications 1 3 14 35 19 3.944 Agree 1
Lack of Experience 1 6 14 28 23 3.917 Agree 2
Lack of VM experts 1 5 16 34 16 3.819 Agree 3
Lack of Awareness 1 5 23 25 18 3.75 Agree 4
Resistance to change 1 6 24 29 12 3.625 Agree 5
Lack of commitment/support 1 10 21 26 14 3.583 Agree 6
Insufficient amount of time
to implement 0 10 23 30 9 3.528 Agree 7
Lack of Knowledge 1 11 28 25 7 3.361
Slightly
Agree 8
Too expensive to carry out 1 16 24 25 6 3.264
Slightly
Agree 9
Poor facilitation skills 1 14 31 22 4 3.194
Slightly
Agree 10
Table 4.1 – Section B : Why VM is not widely used

76
As shown in the summary of the Table 4.1 above, with the analysis method of
average index, the top five rankings of why VM is not widely used are identified as: (1)
Lack of local VM guidelines, standards and specifications, (2) Lack of Experience, (3)
Lack of VM experts, (4) Lack of Awareness, (5) Resistance to change. These factors
have an average index at least 3.6 and above which shows that the respondent considers
these factors to be very influential on VM practices in the Bruneian construction
industry. Lack of local VM guidelines, standards and specifications ranked first through
which they agree that practical guidelines for implementing VM are needed because not
all practitioners are familiar with VM when first attempting to implement it. Lack of
Knowledge, Too expensive to carry out, and Poor facilitation skills are the last three in
the ranks in which they also fall under a scale rating of ‘Slightly Agree’ with a low
average index of 3.4 and lower.
Table 4.2 – Most significant factor of why VM is not widely used
B. Most significant factor of
why VM is not widely used
Frequency Analysis
% Rank
Number of
Respondents
Lack of Knowledge 11 17.2% 1
Lack of Experience 8 12.5% 2
Lack of Awareness 8 12.5% 2
Lack of local VM guidelines,
standards and specifications 8 12.5% 2
Insufficient amount of time to
implement 7 10.9% 5
Lack of VM experts 6 9.4% 6
Too expensive to carry out 6 9.4% 6
Resistance to change 6 9.4% 6
Lack of commitment/support 3 4.7% 9
Poor facilitation skills 1 1.6% 10

77
Table 4.2 displays the additional question in Section B, asking for the most significant
factor of why VM is not widely used which is opinion based.
The chosen most significant factor were ranked out of all ten factors which is
Lack of Knowledge (17.2%). Other factors being 12.5% or lower shows that almost all
of the ten factors given play a part in the decision for the respondents to vote for the
most significant factor
4.6 Section C: Solutions of VM
Figure 4.16 – Conference and Seminar
According to Figure 4.16, half of the respondents (50%) indicated their level of
significance on this solution as significant followed by 23.60% very significant and 22.2%
for moderately significant. Only 4.2% of the respondents deemed this solution to be
slightly significant and none (0%) have voted for not significant. About three quarters of
0.00%
4.20%
22.20%
50.00%
23.60%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Conference and Seminar
Not Significant Slightly Significant Moderately Significant
Significant Very Significant

78
the respondents have favoured on this solution where it organize trainings, workshops or
appropriate seminars to the public. Suggesting that promotion of VM should be more
aggressive.
4.6.2 Local Guidelines for VM, better standardization
Figure 4.17 – Local Guidelines for VM, better standardization
As shown in Figure 4.17, more than half (55.6%) of the respondents have
indicated their level of significance on this solution as significant followed by 18.1% for
very significant, 16.7% for moderately significant, 9.7% for slightly significant, and
none (0%) for not significant. Many have considered this solution to be significant
where it enables the industry to apply VM systematically and effectively and only
7(9.7%) responded slightly significant.
0.00%
9.70%
16.70%
55.60%
18.10%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Local Guidelines for VM, better standardization

79
Figure 4.18 – Careful selection of VM team
As presented in Figure 4.18, the respondents indicated their level of significance
36.1% each for moderately significant and significant whereas 16.7% for slightly
significant, and 5.6% each for not significant and very significant. To conclude, this
solution is considered not as significant as the others mentioned through which there are
4(5.6%) who deemed it to be not significant and 12(16.7%) for slightly significant.
5.60%
16.70%
36.10% 36.10%
5.60%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Careful selection of VM team

80
Figure 4.19 – Provide Incentive clause
As illustrated in Figure 4.19, 41.7% of the respondents selected significant on
this particular solution followed by 38.9% for moderately significant, 9.7% for very
significant, 5.6% for slightly significant, and 4.2% for not significant. To sum it up,
many have agreed that it is significant to provide an incentive clause which includes
sharing the equitable savings and risk for implementing VM that can encourage owners
to apply VM in their projects, but it can be regarded as not the most significant solution
with only 9.7% respondents chose very significant.
4.20%
5.60%
38.90%
41.70%
9.70%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Provide incentive clause

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