Consequences of non-value adding activities on construction project performance

Abstract

Non-value adding activities (NVAAs) are considered as problematic in project management. If the NVAAs are not determined, the performance of the contractor during the construction process will be affected. Most of the construction practitioner does not realize that most of the activities performed during the construction process does not add value to their project. Therefore, the aim of this study is to investigate the consequences of NVAAs on the project performance in the construction industry. This study focus on the construction activities in Iskandar Malaysia, Johor, due to the significant investment in the mixed development received by Iskandar Malaysia each year. The research was conducted to study the causes of non-value adding activities during construction works, to study the effects of nonvalue adding activities towards construction process and to propose solutions to improve project performances by minimizing the causes of non-value adding activities. In order to achieve the research objectives, data collection was gathered through questionnaire survey by random parties who involved in the construction industry consisting of clients, consultants and contractors. There are two methods of data analysis used in this study; frequency analysis method and average index method. According to results analysis, it’s clearly show that waste is not only waste materials on-site, but also includes other activities that do not add value to the construction projects. Thus, it lead increased awareness of the NVAAs among professionals directly and indirectly involved in the construction projects. In addition, results of the study may be used as reference to the construction participants to help improve the performance of the construction project.