Requirement of value management in construction sector at Malaysian Airports Holdings Berhad (MAHB)

Abstract

Currently, Value Management is one important tool in the construction sector. Value Management is an effective technique to obtain optimum returns on investment which is utilised in accordance with the objectives of the project. Although Value Management is still considered a new method in the construction sector in Malaysia, it has been found to be able to reduce cost by at least 10 to 30 percent. Due to the lack of understanding of Value Management by some parties, they do not apply this method in the construction sector. An effort to apply Value Management studies should be started during the early stages of the design phase, even at the initial design concept and continuing to focus on the main design where decisions must be made in advance. This research focuses on examining the level of interest in the value management in the construction sector at Malaysia Airports Holdings Berhad (MAHB) and to identify critical elements in the Value Management chain of MAHB. At same time view and strategies that need to be given to overcome the problem was also investigated. The design of the study is a quantitative approach in which questionnaires were distributed to the staff in each department in MAHB. A mean score was used to measure the level of interest in the VM in MAHB. For the analysis of the critical elements of the VM, Linear Scale Numeric methods were used. The analysis revealed the level of understanding of Value Management in MAHB is not comprehensive. The most critical phases of Value Management identified on the study at MAHB are pre-study preparation phase, speculation phase, and also the post-VM study. This study expected to benefit the parties who use Value Management tool in the construction sector to reduce operating costs but maintain optimum value.