IDENTIFICATION OF POTENTIAL RISK VARIABLES IN IMPLEMENTATION OF VALUE MANAGEMENT

Abstract

Achieving client satisfaction is being identified as one of the most significant elements in today’s construction industry. With the evaluation of globalisation, Singapore’s construction industry has been constantly working towards the aim of satisfying the clients’ needs and expectations. As such, value management is identified as a key fundamental tool in achieving client satisfaction. However, studies have shown that enhancing value often associate with potential risk variables. It is a prevalent problem and studies have shown that if such risk variables are not being managed properly, it will affect the overall project performances of construction projects.

Analysing the survey data obtained from 50 companies, this research aims to explore the potential risk variables in value management and assess the correlation of the different types of risk variables occurred in each of the value job phase. Potential risk variables are identified in the six different phases of value job plan. However, majority of the local firms fail to achieve the best coordination upon implementation of value risk management (VRM). Common risk variables such as inadequate experience in value management and delay in approvals are being identified. These factors are registered as major factors contributing to the barriers of value risk management.

Furthermore, it identifies the current status of value risk management in the Singapore construction industry. The results of this study established that the concept and application of VRM was believed to be still in a premature stage in Singapore. The identification of potential risk variables in value management and the integration between the two methodologies as a common tool can aid in achieving a better project performances.