The document discusses a value management study conducted for Package V3 of the Sungai Buloh–Kajang MRT line project in Malaysia. Package V3 involves the construction of 3 elevated stations, 2 multi-storey carparks, and viaduct guideway. The original design placed these underground at an estimated cost of RM6 billion. Through value management, the design was changed to elevated structures, cutting costs to RM3 billion. Alternatives were analyzed using the SMART methodology and technical data. Cost was a primary driver in selecting options like flat roofs, precast concrete, and epoxy flooring. The preliminary cost plan for civil works was RM1.5 billion of the RM3 billion

1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
BACHELOR OF QUANTITY SURVEYING (HONOURS)
VALUE MANAGEMENT (QSB 60203)
NAME & STUDENT ID: Chong Kai Xiang 0322935
Hiew Li Ming 0319941
Hong Kai Yin 0323361
Jackson Ting 0324326
Lee Ern Hui 0319703
Ng Wai Khong 0317980
Than Lek Mei 0315538
LECTURER: Sr. Loo Seong King

2. 2
TABLE OF CONTENT
TITLE PAGE
INTRODUCTION 3
BENEFIT OF VALUE MANAGEMENT 4
BRIEF DESCRIPTION OF PROJECT 5
BRIEF SUMMARY OF PROBLEM 7
SMART METHODOLOGY 9
TECHNICAL DATA FOR ALTERNATIVES 11
COST ANALYSIS 16
ACTION PLAN 19
CONCLUSION 20

3. 3
INTRODUCTION
Value management (VM) is vital throughout the entire process from concept to completion of
a construction project. Value Management is a rigorous, systematic effort to improve the value
and optimize the cost of project, facilities and systems. It generates the cost improvement
without sacrificing the needed performance levels.
VM also provides a method of integration in the building process that no other management
structure in construction can provide. Without implementing value management study, many
problems will occur such as, construction project delayed, cash flow problems, unnecessary
cost and others.
Value Management is not just the traditional cost cutting tool but is kind of a creative, team
oriented exercises and systematic approach by using structured functional analysis. This is
derived into a simple formula of “Value = (Function + Quality)/Cost”, Value equals to Function
plus Quality divided by Cost. Where the function stands for the specific worth that a design or
item must perform, Quality, an owner or user needs, desires and expectations, Cost, the life
cycle cost of the product or project. With this, we can derive that value is the most cost effective
way to reliably accomplish a function that will meet the user’s needs, desires and expectations.
Value Management is needed to the success of projects as it provides a principle for strengthen
the value for money in construction industry, it also involves representatives of key
stakeholders in a facilitated workshop. Currently in the construction industry, the majority of
customers are concerned with attaining value for money in their own construction projects.

4. 4
BENEFIT OF VALUE MANAGEMENT
There are many advantages by implementing value management to the construction projects
and this can lead to building the morale of the professional team. The benefits of Value
Management is exercised to the maximum when implemented at the start of the project and in
particular if it is applied during the conceptual development and initial design stages. The list
below will be showing some of the benefits of Value Management that is somehow directly
or indirectly connected with optimising the value for money for a project.
➢ Value Management seeks to obtain maximum efficiency ratios
➢ Value Management creates a clearer focus on the project objectives
➢ Identification of alternative methods of construction and favourable adjustments to the
construction timeline
➢ It can identify possible problems early on in the project if properly implemented
➢ Over specification is addressed and an improved building programme can be
developed leading to time being saved and ultimately savings in cost
➢ Discovery and discussion of project issues, constraints and risks involved
➢ Decisions are made with greater confidence because it can be supported by data and
defined performance criteria
➢ Value Management works towards arriving at a more effective design
➢ Clearer project brief and decision making
➢ Identifies and removes unnecessary costs associated with the project
➢ Over specification is addressed and an improved building programme can be
developed leading to time being saved and ultimately savings in cost

5. 5
BRIEF DESCRIPTION OF PROJECT
The project that we had study is the construction of Mass Rapid Transit (MRT) which is the
Sungai Buloh – Kajang line. The total length of the project is fifty-one kilometers (51km)
which are consisted nine kilometers (9km) of underground pathway and forty-two kilometers
(42km). Besides, there are 31 stations for these fifty-one kilometers long MRT. The whole
project is divided into nine packages, and the part that are awarded to be constructed is V3 as
shown in the Figure 1 below.
Originally, the package V3 will be constructed underground which includes the station and
railway et cetera. However, package V3 included three connected railway stations which
located at The Curve, One Utama and Taman Tun Dr Ismail. The job scopes of this package
include 3 stations, 2 numbers of 8-storey carparks and viaduct guideway which connect all the
existing station by others. Furthermore, there are a lot of facilities which are provided by the
stations which are lift, escalator, feeder bus, side platform, public toilets, surau, public
telephone, ticket vending machine, and facilities for the disabled. The original cost of this
package is around RM6,000,000,000.00 including all works (CIMB Research, 2017).
Figure 1: Packages of MRT.

6. 6
Figure 2 and Figure 3 shows the inception stage where the concept of the MRT is constructed
underground.
Figure 4, Figure 5 and Figure 6 shows the construction phase after the implementation of Value
Management studies.
Figure 2: MRT Underground Railway. Figure 3: MRT Underground Station.
Figure 4: MRT Elevated Station. Figure 5: MRT Elevated Railway.
Figure 6: MRT Site View.

7. 7
BRIEF SUMMARY OF PROBLEM
Malaysia is a tropical country that rains frequently. As this project is being carried out in
Damansara, which is located on the west coast of Malaysia, this problem is being emphasized
on the month April to October. This is due to in this period, the west coast of Malaysia will be
facing the Southwest Monsoon, which increases the chance of rainfalls. Other than that, the
frequent of rainfall may also result in flash flood. Thus, if rainfalls occur frequently, the
construction is likely to delay as it is difficult for the workers to execute their works.
The traffic in Damansara is more congested compared to other areas. MRT stations are
constructed in high population areas which is nearby shopping malls whereas the railways are
constructed along the road. Therefore, during the construction, it will cause serious traffic
problems. Some of the lanes on road will be closed, which may further increase the traffic
problem in these affected areas.
Railways of the MRT are made from precast concrete that connects. Transportation is needed
to transport the precast concrete from factory to the construction site. As precast concrete is
huge in size, only a few precast concretes can be transported at once. Thus, more trips are
needed for the transportation. Besides, the installation of precast concrete to form railways is a
challenging process as machineries are needed to lift the precast concrete to the desired height.
Furthermore, noise pollution is also an issue that may encountered. To reduce the impact on
traffic, most of the construction works are normally carried out at night. Due to some part of
the construction is located nearby residential areas, the noise produced by machineries may
affect the residents.

8. 8
Other than the construction cost, maintenance fee is a problem that must be considered as well.
The scope of maintenance includes facilities in the station, such as toilet, escalator and lifts,
railways and software systems. Also, the car carriages may need to upgrade into bigger size in
the future if the passengers increase.
Moreover, the construction works of MRT are mostly separated into different work packages
such as earthworks packages, substructures works, electrical works and etc. These work
packages will then form a chain effect. For instance, if the earthworks have been delayed, the
structural works cannot be performed as well.
Lastly, the budget of the construction may overrun due to inflation. In Malaysia, this has
happened in the construction of KL Monorail. The project was completed at a cost of RM 1.18
billion, which is much higher than the estimated cost of RM 143 million due to changing of
hands a couple times, delay of works and inflation. Due to the similar project has happened
before, the budget need to be monitored from time to time to prevent cost overrun.

9. 9
SMART METHODOLOGY
• The SMART methodology is an acronym in a value management context, for ‘Simple
Multiple Attribute Rating Technique’ which is quite similar to FAST diagram.
• This methodology uses the concept of a value tree diagram which represents a range of
design objectives to link functions.
• This value tree begins from the left-hand side with a statement of project objectives
followed by value-adding sub-objectives.
• Each of these sub-objectives is broken down into attributes adding value to that branch,
thus decreasing abstraction from the left to right.
• SMART also uses weighting and scoring system as decision support to assist teams in
achieving a proper decision.

10. 10
• Each objectives is defined by sub-objectives and attributes
• There may be several objectives
• Attributes are placed under the lowest level of objectives
Value tree is shown as above. The client ranks the value which represents the level of
importance in reaching the project objectives. The weighting for each of the values is expressed
in decimal which is less than 1 so that the total weighting for any level of abstraction for any
single attribute adds to one. This weighting and scoring techniques helps in deciding an option
from other competing options. Value Management team is able to evaluate the relative costs to
take on a function with its importance in the overall project by attributing costs to the value
tree.

11. 11
TECHNICAL DATA FOR ALTERNATIVES
Pitch roof vs Flat roof (Multi-storey Carpark)
Factors Pitched roof Flat roof
Designs
-Typically at their best
on smaller buildings, due
to their compact nature.
• -Rainwater can drain
away easily from a
pitched roof, thanks to its
highly sloped angle,
which prevents pooling.
-Being quicker and easier
to install than pitched roof.
-Cheaper design and
installation costs compared
to pitched roofs, and you
can quickly save a bundle
by opting for a flat roof.
Cost
-Pitched roof may be
more affordable in the
long-term.
-Initial cost of
construction can be
comparatively high.
-Cost of construction are
probably lower than a
pitched roof
(i.e: less materials, simple
designs, etc).
-Required lesser materials
and labour to install.
Repair & Maintanence
-Missing of roof tiles will
cause rain water into roof
space.
-Pitched roof usually
cause more unnecessary
and unusable roof space.
-Difficult to maintain.
-Drainage is not quite as
effective as a pitched roof.
-Without regular
inspection, drains can
become clogged, leading to
damage and leaks.
-Easy to maintain.

12. 12
Cast in-situ vs Precast concrete (Viaduct Guideway)
Factors Cast in-situ Precast
-Requires excavation.
-On-site forms to be
created and placed.
-Excavate the land as
needed.
-Unexpected weather
conditions will delay
progress.
-Cold weather can add
cure time.
-Uses a controlled
environment, weather
does not play a factor in
forming.
-Variables factor into your
final product.
-Temperature, wind,
humidity, etc. can impact
final strength.
-Strict strength
requirements before
leaving the plant.
-Consistency across all
precast materials.
-Concrete is subject to
outside variables and
changing conditions.
-All testing must be
performed on site.
-Controlled environment
prevents any outside
variables.
-All concrete must pass
strict testing. Ideal
conditions are maintained.

13. 13
Cement render flooring carpark vs Epoxy flooring carpark (Multi-storey Carpark)
Factors Cement render flowing
carpark
Epoxy flooring carpark
Cost
-High cost due to concrete
plastered flooring easy
been damaged.
-Cost a high amount of
construction cost.
-Lower cost of materials.
- Lower cost to build a
shade material-kind of
carpark.
UV Protection
-Don’t really provide UV
protection from the
sunlight.
-A normal or even cheap
kind of structure would be
setup by fulfil its function
instead of protect people
health.
-A barrier protects users
from direct and indirect
sources of UV radiation.
-Uses a high technology
by create a protection via
a layer of shade to avoid
UV lights.
Repair & Maintenance
-Needed to repair from
time to time whenever its
damages.
-Cost of maintenance
should be considered.
-Easy to maintenance.
-Low annual repair and
maintenance fee.

14. 14
Traditional lighting system vs Solar lighting system
Factors Traditional lighting Solar lighting
Cost
-Continuous costing due
to replace a new bulb.
-Non-renewable for its
function only can replace
a new one.
-Lower particular building
power’s consumption.
-Solar panels to feed the
grid during the day.
Life span
-Will need to replace a
new light bulb from time-
to-time due to its life span
is limited time.
-Usually need to replace
2-3years.
-Unlimited life span if
well-protected.
-Solar panels are easy to
maintain and can be used
for last longer.
Repair & Maintenance
-Nothing to be repaired or
maintence and only can be
replaced.
-High cost of repair and
maintenance fee from
time-to-time.
-Easy to maintenance.
-Not necessary to repair
and maintenance fee if
well-protected.

15. 15
Traditional procurement vs Value manger indicator procurement
Factors Traditional VM indicator
Pre-construction
-Gather all professions
that required and sit down
together to discuss about
the planning construction
flows.
-Using the concept of
value for money.
-Create a business or
construction plan by using
the least money to create
the best quality of an end-
product.
During Construction
-Ensure all procurements
and process are going
smoothly.
-Make sure all the
construction expenses are
under control and do not
exceed the budget given
by client.
-Value manager will
become the leader of a
team to identify the
unnecessary cost during
construction and remove
it.
-Keep on identify the
progress and details of
construction and discover
unnecessary cost to
remove.
Post-construction
-Pass the key to the client
and close the final
account.
-Provide a lease-hold plan
which brings back a high
value of money for their
clients.

16. 16
COST ANALYSIS
According to CIMB Research (2017), the original construction cost per kilometer for
underground MRT works estimate price is RM1bil/km. It leads to a total of RM6 billion for
feasibility studies. Hence, after appointing a value management team, the design is then change
to elevated MRT which cost RM500mil/km which a total of RM3 billion which cut the cost
into half. Moreover, the total cost for elevated works included site clearance, earthworks,
foundation, civil & infrastructure works, system & software installation for the elevated
stations and viaduct guideway.
According to Figure 7, it shows the estimate cost data of allocation of percentage of costing for
elevated railway and station project exclusive of multi-storey car park which are a separate
entity. Based on our work scope, we are required to only complete the civil & infrastructure
works which priced RM1.5 billion out of the RM3 billion. Hence, we had prepared a
preliminary cost plan for this construction project.
ESTIMATE COST
DESCRIPTION % RM
Preliminaries 5% RM150,000,000.00
Site Clearance 5% RM150,000,000.00
Earthworks 5% RM150,000,000.00
Foundation 10% RM300,000,000.00
Civil & Infrastructure works 50% RM1,500,000,000.00
System and Software Installation 20% RM600,000,000.00
Contingencies 5% RM150,000,000.00
RM3,000,000,000.00
Figure 7: Estimate Cost.

17. PROJECT TITLE: PROJEK MASS RAPID TRANSIT LALUAN 1 SUNGAI BULOH-KAJANG (SBK) LINE PACKAGE V03: 1) CONSTRUCTION AND COMPLETION OF
VIADUCT GUIDEWAY AND OTHER ASSOCIATED WORKS FROM DATARAN SUNWAY TO SECTION 16; 2) CONSTRUCTION AND COMPLETION OF 2 NO OF MULTI
STOREY CARPARK BUILDING, EXTERNAL WORKS AND OTHER ASSOCIATED WORKS AT ONE UTAMA AND TAMAN TUN DR ISMAIL STATION; 3)
CONSTRUCTION AND COMPLETION OF ELEVATED STATIONS AND OTHER ASSOCIATED WORKS AT THE CURVE, ONE UTAMA AND TAMAN TUN DR ISMAIL.
PRELIMINARY COST PLAN
ITEM UNIT QTY RATE RM RM
1 Viaduct Guideway
A) From Existing Station to Mutiara Damansara Station Km 1.50 RM130,389,776.36 RM195,584,664.54
B) Mutiara Damansara Station to One Utama Station Km 1.44 RM130,389,776.36 RM187,761,277.96
C) One Utama Station to Taman Tun Dr Ismail Station Km 1.80 RM130,389,776.36 RM234,701,597.44
D) Taman Tun Dr Ismail Station to Section 17 Station Km 1.52 RM130,389,776.36 RM198,192,460.06
Sub Total (Viaduct Guideway) 6.26 RM130,389,776.36 RM816,240,000.00
2 Multi Storey Carpark Building
A) 8-storey Taman Tun Dr Ismail Station Sq/m 38,010.08 RM1,125.00 RM42,761,344.50
B) 8-storey One Utama Station Sq/m 38,463.85 RM1,125.00 RM43,271,836.20
Sub Total (Multi Storey Carpark
Building) 76473.94 RM1,125.00 RM86,033,180.70
3 Elevated Station
A) Mutiara Damansara Station No 1.00 RM85,923,333.33 RM85,923,333.33
B) One Utama Station No 1.00 RM85,923,333.33 RM85,923,333.33
C) Taman Tun Dr Ismail Station No 1.00 RM85,923,333.33 RM85,923,333.33
Sub Total (Elevated Station) 3.00 RM85,923,333.33 RM257,770,000.00
4 Preliminaries
-Pedestrian Network Item
5%-Site Survey Item
-Hoarding and Signboard Item
-Traffic Impact Assessment
Sub Total (Preliminaries) 0.05 RM58,002,159.04
Total for Item 1 to 4 (Excluding Contingencies & Cost Escalations) RM1,218,045,339.74
5 Contingencies
Total for Item 1 to 4 (Including Contingencies) Item 5% RM60,902,266.99
Sub Total (Item 1 to 5) RM1,278,947,606.72

18. COST DATA
According to the preliminary cost plan, the expected total is RM 1,278,947,606.72 for the
overall project. The cost data are extracted from sources as shown below:
COST DATA
DESCRIPTION UNIT COST/UNIT SOURCE
Viaduct Guideway Km RM130,389,776.36 MRT Financial Report
Multi-Storey Carpark Sq/m RM1,125.00 Arkadis Handbook
Elevated Station No RM85,923,333.33 MRT Financial Report
For civil & infrastructure work, the preliminary cost plan shows a total of RM1,074,010,000.00
which save a total of RM425,990,000.00 with the alternative proposal.
Figure 8: Cost Data.

19. 19
ACTION PLAN
No. Element
Recommendation
Solution
Justification Action Task
1 Pitch Roof Flat Roof
- Quicker
and easier
to install
- Cheaper
Design
- Easier to
do
maintenance
Architect
Detailed Design
Stage
Engineer
Quantity
Surveyor
Project
Manager
Construction Stage
VM
Facilitator
Workshop Stage
(Job Plan) &
Implementation
Stage
Client
Post-Workshop
Stage
2
Cast in-
situ
Precast Concrete
- Easier
Prework
-Better
strength
-Wont affect
by weather
while casting
Architect
Detailed Design
Stage
Engineer
Quantity
Surveyor
Project
Manager
Construction Stage
VM
Facilitator
Workshop Stage
(Job Plan) &
Implementation
Stage
Client
Post-Workshop
Stage
3
Cement
Render
Flooring
for
Carpark
Epoxy Flooring
for Carpark
- Cheaper
for materials
-Better
lifecycle
-Easier to do
maintenance
Architect
Detailed Design
Stage
Engineer
Quantity
Surveyor
Project
Manager
Construction Stage
VM
Facilitator
Workshop Stage
(Job Plan) &
Implementation
Stage
Client
Post-Workshop
Stage
4
Traditional
Lighting
System
Solar Lighting
System
- Lesser
power
consumption
for life cycle
- Unlimited
life span
- Easy to do
maintenance
Architect
Detailed Design
Stage
Engineer
Quantity
Surveyor
Project
Manager
Construction Stage
VM
Facilitator
Workshop Stage
(Job Plan) &
Implementation
Stage
Client
Post-Workshop
Stage

20. 20
CONCLUSION
In a nutshell, the implementation of Value Management (VM) is important during the design
stage where changes and ideas generated during the planning and concept stage will be much
more convenient to adjust than during construction stage. This method will deliver a cost
effective and low impose of risk. The main problem of this project is due to an involvement of
large scale which will affects an entire route in a city. Hence, the early involvement of VM is
keen important.
The main concern for the changes made are not just prior to cost and value, but also to the
environment and stakeholders of the city itself. Furthermore, the application of VM in this
major government project is to ensure life-cycle orientated value to the government itself. The
investment should not be a debt for maintenance and sustaining the project itself. All the
alternatives pointed out are subjected to increase the value of the project, create an
environmental friendly project and a sustainable friendly project.