Roadmap for implementing value management in the Nigerian construction industry

Abstract

Value management (VM) is an acknowledged technique used to optimise the performance of construction projects in most developed and developing countries. Research and improvement in the use of value-added techniques have continued to gain consideration worldwide as a result of the universal quest to reduce construction projects costs without sacrificing quality and performance of construction ventures. This research focuses on developing a roadmap for implementing VM in the Nigerian construction industry. Accordingly, the objectives of this research are to investigate the current value-added activities, to identify the barriers to VM applications, to identify the critical success factors for VM applications, to examine the relationship between critical success factors and the current value-added activities, and to develop a roadmap for the successful implementation of VM. Quantitative research approach was adopted for the study. A total of 465 questionnaires were distributed to practicing architects, quantity surveyors, builders, civil engineers, and services engineers, and a response rate of 74% was achieved. Data analysis techniques employed include: descriptive analysis using cross-tabulation, mean scores and relative importance index; normality test; reliability test; validity test using Kaiser-Meyer-Olkin (KMO) and Barlett’s test of sphericity; factor analysis; and structural equation modelling. Findings reveal that although there is no formal implementation of VM in construction projects in Nigeria, at least 3 phases of VM have been adopted in the construction processes. Findings also demonstrate that VM practices in the Nigerian construction industry are hindered by lack of expertise, lack of awareness among clients, poor collaboration among stakeholders, resistance to accept new innovations, inadequate facilitation skills, lack of active involvement of clients and stakeholders, and absence of local VM guidelines. Consequently, drivers including multidisciplinary team, competent facilitators, effective communication among VM participants, ability to conduct VM workshops, commitment of all stakeholders to VM workshop, and support from government agencies would facilitate the successful implementation of VM. The roadmap established from the research results suggests four (4) requirements that necessitate the implementation of VM in the construction industry, namely “peoplerelated factors”, “government-related factors”, “environment-related factors”, and “information/methodology-related factors”. The roadmap was validated by construction experts to confirm its suitability, usefulness, applicability and acceptance, and would form the basis to develop a VM manual or standard for the Nigerian construction industry.