Value Management Study Overview
Value Management Study Overview
Group Members:
Danielle Yoong Li Ping
0317206
Ng Wei Lin
0316302
0310592
0314411
0316919
0310908
Tan Jing Yi
0317479
0317516
Item
Member Name
Job Scope
Introduction and Purpose of
VM study, compilation of
presentation slides
Executive Project Brief and
Summary of Problem,
compilation of report
Application of VM
specification as proposed in
the priority matrix
Cost data and cost analysis
Ng Wei Lin
Tan Jing Yi
recommendation upon
completion of the VM study
Table of Contents
1.
Introduction ................................................................................................................................... 3
1.1 Purpose of Value Management study........................................................................................ 3
1.2 Value Management Change Proposal (VMCP) ....................................................................... 4
1.3 Madge Mansions Problem ........................................................................................................ 4
1.4 Benefit of Value Management.................................................................................................... 4
2.
3.
4.
Layout Plan.................................................................................................................................. 22
8.
9.
1. Introduction
Value management usually integrates with reviews, workshops and interviews to
achieve the project and clients requirements. Value management is a stringent systematic
effort to enhance the projects cost, value, facilities and system without affecting the
performance level. All construction projects should conduct a value management study. A
failure to carry out value management study may suffer problems such as user dissatisfaction,
excessive operating costs, claims, cost and time overrun on the design and construction stages
of the projects. Therefore, value management is the solution to prevent the occurrence of these
problems.
Value Management covers a total of three main value studies, called value planning,
value engineering and value analysis. Each of these studies are carried out at different stages
in a construction. Value planning is carried out at the pre-construction stage to reach a group
decision regarding the proposed design. Value engineering is carried out during the
construction stage to study on the completed design or element available. On the other hand,
Value analysis is conducted at the post construction stage to analyze on the completed project
for further purposes.
generate tons of ideas to propose alternative methods of construction or designing to satisfy the
clients expectation and requirement.
In addition, VM study also put its priority on whole life-cycle costing. Maintenance
cost is in fact one of the greatest cost driver since the life span of a building can easily exceed
50 years. Thus this maintenance and operational cost needs to be incorporated or considered
during the VM study to forecast the viability of the design and materials chosen.
and falls within the budgetary constraints, whereas contractor wishes to provide a service which
will afford them an adequate profit and the designers are keen to meet the expectations of the
client whilst complying with certain standards and performance criteria. Value management
can address most of these needs directly or indirectly, thus bringing a degree of satisfaction to
all the stakeholders involved (Rangelova and Traykova, 2014).
The list below is the benefits of value management that is connected with optimizing the
value for money for a project:
Value management deals with lifecycle costs, not only initial project cost and provides
an authoritative review of the project in its totality and not just a few elements. Future
profitability can also be assessed if the lifecycle costs are known
Decisions are made with greater confidence because it can be supported by data and
defined performance criteria
It is important to implement value management in every project because it can lower the
changes cost when in construction or design phase. It also can reduce the cost before the
commencement of construction phases.
5
2.
Madge Mansion, located in the heart of Kuala Lumpurs most coveted real estate
address, is a premium luxury property development on Madge Road. This is Gamuda Lands
most luxurious condominium project up-to-date. The total development area is 2.16 acre with
a Gross Development Value of approximately RM 300 million and Contract Sum of RM 138
million. This development is planned to have a low density with only 24 units per acre. Madge
Mansion is one of the few properties situated in the city that boasts of an average build-up area
of 4,400 sf, thus earning a title of Villas in the Sky. This spacious layout of the mansion is
on average larger than some landed bungalow houses.
It is located on Jalan Madge which is parallel to Jalan Ampang along the Embassy Row
in Kuala Lumpur. There is a total of 52 units of a three (3) block ten (10) storey condominiums.
The design concept is said to be an ultra-luxurious medium rise development in the heart of the
city with very spacious layouts.
2.1.1 Features
There are many features for Madge Mansion to attract the attention of the affordable
range of potential buyers. For example, there will be a reception counter at the entrance or
lobby of each block to assists the residents if needed. Only 2 units are available on 1 floor, thus
enabling it to have private lift lobbies and a dedicated service lift for back of the condo unit.
All windows are full height windows, to capture the spectacular view of the city at night. Other
than that, there is also louvre panels to walls for screening from topical heat. On top of that,
there is a private dip pool or private lanai (balcony) for relaxation/ recreation. Kitchens are
divided into wet and dry area to maximum the efficiency. Fittings and fixtures such as
wardrobes, kitchen cabinets, air-conditioning system and centralized gas piping are provided
to all units.
The development has a comprehensive 3 tier security system and outdoor CCTV on
24/7. For internal surveillance, dome cameras are present to safeguard the security of the
residents at all times. Access cards is a must to all lobbies and lifts since its a private lift
lobbies to all units.
In addition, there will be 3 car bays for all units with a drivers room at the basement.
To promote ventilation, there will be terrace planting at all levels of the basement car park.
Designated car wash bays are available at the basement car parks with socket points for
convenience of the residents.
3.
It is always important for the client to identify his or her objective of the project before
the commencement of the project. For example to achieve a certain standard of quality for the
end product. Thus for the Madge Mansion, Gamuda Land had an objective proposed to the
relevant consultants during the early stage of the project.
1. To create a premium luxury condominium in the heart of Kuala Lumpur with suitable
materials.
2. To enhance the living standard of the customers that is value for money.
Hence based on the objectives by Gamuda Land, it can be seen that they mainly
emphasize on increasing the quality and the living standard that is value for money. Thus, the
client has the idea of optimising the functional performance and the value of the condominium
unit rather than reduction of cost although reducing cost is vital as well. Before carrying out a
VM study, a problem has to exist that will cause the client to engage the consultants to form a
VM team. This VM team will work together to identify the value problem and propose an
alternative design to enhance the living standard and attain value for money as required by the
client.
Problems from different areas in the unit was identified and an alternative proposal was
suggested.
1. Unnecessary Cost
Dip Pool in each unit is an unnecessary cost as there is a public pool located at
the ground floor as one of the common facility
The landscape area near the Dip Pool is a hidden unnecessary cost as it not fully
utilized for its purpose.
7
Bath 1 is not required as Bedroom 1 and 2 are already having a shared bathroom
(Bath 2). Any guest can utilized the toilet at the Studio Bath.
A private lift lobby is not required as since there are only two units per floor,
thus a public lift lobby is sufficient.
Certain areas such as family area and living area serves the same purpose which
is for guest and family members to get together. Thus new areas can be added
to add on the function and value of the area.
Since Dip Pool is not necessary, the area for the Dip Pool shall be utilized for a
better function that will be proposed in the next section of this report.
3. Unsuitable Materials
Certain materials suggested by the architect is not suitable as it does not align
with the clients requirement which is to use high quality material to enhance
the overall aesthetic appearance.
How?
Enhance Living
Standard and attain
value for money
Why?
Maximize Usable
Space in a Living
Unit
Changing design/Arrangement
of space and adding new concept
to the unit
Propose Sharing Lift Lobby
within the units
Enlarge Wet Kitchen
Eliminate
Unnecessary Spaces
and functions
Hacking
Unnecessary
Walls
When
A VM workshop has been carried out to review Madge Mansion - a high end
condominium in Kuala Lumpur to improve the original design and cost plan by
producing an alternative proposal. To achieve the clients desired living standard and
attain value for money habitat, the initial design, space function, and selection of
materials have been studied as well as integrating new concept to the original design.
Building
Condominium
Definition
Verb
Noun
Accommodate Occupant
Type of
Function
Basic
Function
The functions of spaces in the proposed unit are identified, analysed and
categorised according to their types of function.
10
Types of Function
Area
(m2)
Basic Function
98.96
7.60
53.07
Area
Supporting Function
Basic Function
Required Secondary
Function
Required Secondary
Function
Required Secondary
Function
Supporting Function
Unnecessary Function
Unnecessary Function
Supporting Function
Required Secondary
Function
Required Secondary
Function
Required Secondary
Function
Required Secondary
Function
Supporting Function
Required Secondary
Function
Supporting Function
Waiting
Area
Supporting Function
9.11
Staircase
Provide
Access
20
Riser Room
Store
21
Control Unit
Room
Handle
Item
Space
Bedrooms
2
3
Wardrobe
Bathrooms
Family Area
Bond
Relationship
Dining
Allow
Dining
Living
Allow
Socialisation
7
8
9
10
Foyer
Dip Pool
Landscape
Dry Kitchen
Allow
Allow
Improve
Prepare
Access
Relaxation
Aesthetic
Food
11
Wet Kitchen
Cook
Dishes
12
Store
Store
Goods
13
Utility
Keep
Appliances
14
Yard
Do
Laundry
15
Terrace
Allow
Relaxation
16
Lift
Cater
Passengers
17
Lift Lobby
Private Lift
Lobby
Waiting
19
18
22
23
Handle
Allow
Electrical
equipment
Processor
control
signals
Mechanical
Equipment
Planting
Total Area
11
Required Secondary
Function
Required Secondary
Function
16.77
33.33
33.33
18.15
22.83
9.08
29.04
11.37
5.35
10.60
10.10
18.10
11.94
15.74
30.64
1.12
Required Secondary
Function
6.21
Required Secondary
Function
3.64
Unnecessary Function
1.17
457.23
Item
1
2
Ideas
Increase Utilisation of
Space
Adding New Concept of
'Work from Home'
Eliminate Unnecessary
Spaces or Functions
Changing
design/Arrangement of
space
Method
Category
of Ideas
Increase Aesthetic
Appearance
Improve Privacy
Upgrading Sanitary
Appliances
Construct Recreational
Corner
12
2 and 3
2 and 3
The ideas from brainstorming process are evaluated in term of its advantages,
disadvantages, and risks. Moving on, the ideas are evaluated by four major aspects
which are clients requirement, functional suitability, economic feasibility, and
technical feasibility. Clients requirement refers to clients wants and needs in their
desired home. Functional suitability is to identify the level where a particular product
or space is able to provide the required function or fulfil the specified needs.
Furthermore, economic feasibility is the analysis of a developments costs and
revenues thus determining the possibility of completing such development. Lastly,
technical feasibility study evaluates the details of delivering a product or service which
includes labour, materials, transportation, location and technology needs. In general,
it is the tactical plan on the business method in producing, storing, delivering, and
tracking its product or services. Hence, it is a usable tool in troubleshooting and long
term planning.
After determining the contribution of ideas in these four major aspects, the
ideas are then being categorised into four categories to determine the possibility of
ideas development in this proposed building. The categorisations of ideas are shown
below:
1=Potential Idea
2=Potential Idea for future use
3=Good idea but extra fund is needed
4=Discard but keep on record
13
Item
Ideas
Advantages
Disadvantages
Add value to a
particular
space
Prolongation of
construction time
Increase Utilisation
of Space
Allow fully
utilisation of
extra space
Allow fully
utilise of space
Adding New
Concept of Work
from Home
Provide
personal office
to the house
owner
Allow owner
to work at
home
Additional costs
may incurred
Extra time may
needed in
selection of
finishes
May prolong
construction
period
To save cost
Allow
upgrading of
building
materials by
using the cost
saved
Risks
Eliminate
Unnecessary Spaces
Increase
or Functions
bathrooms
usage
14
Occupants
opportunity cost
of having
personal private
relaxation space
and private lift
lobby
Might cause
overall
project delay
if project
schedule is
not properly
planned in
the early
stage and
awaiting
approval
from
Architect
Increase
personal's area
Changing
Increase
design/Arrangement Terrace Area
of space
Increase
cooking area
To enhance
living standard
Increase Aesthetic
Appearance
To attain value
for money
quality
To increase
comfortless
Improve Privacy
Upgrade Sanitary
Appliances
Selection of
materials need to
consider project
cost and extra
time may needed
Improve
Bathroom's
Privacy
To achieve
users comfort
level
To attain value
for money
appliances
quality
Might cause
delay due to
materials order
lead time
To have
Extra cost may
private karaoke
incurred
room
8
Construct
Recreational Corner
To enhance
living standard
15
Table 4.5 shows the possibility of Ideas Development from Evaluation Process
Aspects
Item
Ideas
Clients
Functional Economic Technical
Requirement Suitability Feasibility Feasibility
Categorisation
of Ideas
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
1 and 3
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
1 and 3
Improve Privacy
Yes
Yes
Yes
Yes
Yes
No
No
No
2 and 3
Yes
Yes
No
No
2 and 3
16
Through VM study, a list of potential ideas is evaluated and risk has been identified in
the evaluation phase. As the main purpose of this workshop is to enhance living standard
(value) while maintaining the project original cost, VM team has decided to eliminate
unnecessary spaces or functions in every units. The money retained from eliminating
unnecessary spaces or functions is then use to upgrade the house interiors as well as adding
new concept to the units. However, only potential ideas are selected to be implemented in this
project. Therefore, activities to be carried out are described as below.
From the VM study, it was suggested that home bar shall be constructed in family area
as client demands for a high quality living lifestyle. Home bar acts as the centre hub for
entertainment where it potentially becomes the clients favourite spot to enjoy a glass of wine
while having bonding times with family after a long whole day of working outside.
Besides, the VM team decided to provide a personal office room to the owners. By
adding a new concept of Work from Home in the unit, owners can now work in his personal
office room attached to the Master Suite. The office room is designed to extend to the original
Terrace area. It serves a door to allow access to the Terrace area which is also accessible from
living.
As the purpose of this VM study is to enhance clients living lifestyle while maintaining
the original contract amount, VM team has decided to eliminate Dip Pool and Landscape from
17
the unit itself. It is believed that by eliminating these two areas, huge amount of money could
be saved. Hence, the money can then be spent to upgrade the units to attain value for money.
Besides, Bath 1 is eliminated and Bath 2 is now acted as a sharing bath to save
unnecessary cost. Furthermore, private lift lobbies is not necessary in the sense that it could be
converted to a sharing lift lobby among two units on each floor to provide larger space to the
house unit. The combination of private lift lobbies between two units is then altered the position
of lift B2.
From the VM study, Bedroom 1 will be enlarged by eliminating Bath 1. The increase
in floor area provide bigger personal space for the users and able to accommodate more
personal belongings. However, Bath 2 is now becoming a sharing bathroom where an
additional door has to be installed to allow access from Bedroom 1. The sharing of Bath 2
increases its usage level.
On the other hand, the decision to hack the wall between wet kitchen and store to extend
wet kitchen floor area allows a larger cooking space. The Store is now moved to Yard.
Before VM workshop is carried out, clients complained that the overall quality of the
unit does not attain value for money purchase as clients have a high expectation on the overall
aesthetic of the unit. Thus, finishes for floor and lighting fixtures in certain areas shall be
upgraded. In this case, Priority Setting Matrix and Weighted Scoring Matrix are used to ensure
a proper selection of finishes.
18
A=Capital Cost
B
B=Maintenance
C=Pattern Formation
D=Quality Finish
E=Durability
F=Cleanliness
G=Ease of Installation
H=Reliability of Supply
A=Capital
C=Pattern D=Quality
G=Ease of H=Reliability
B=Maintenance
E=Durability F=Clealiness
Cost
Formation Finish
Installation of Supply
TOTAL
A
B
C
D
E
F
G
H
Options
2
5
6
4
4
3
1
3
Granite Flooring
3 6
4
20
3 18 4 16 4
16 4 12 3 3 2
6
97
Ceramic
4 8
4
20
3 18 3 12 3
12 3
9 3 3 4 12
94
Oak Hardwood Flooring 2 4
1
5
2 12 4 16 4
16 4 12 2 2 3
9
76
Carpet
2 4
1
5
2 12 4 16 3
12 2
6 4 4 3
9
68
Vinyl Flooring
3 6
2
10
1 6 3 12 2
8
3
9 4 4 3
9
64
Marble Flooring
2 4
3
15
4 24 4 16 4
16 4 12 3 3 2
6
96
19
A=Capital Cost
B
B=Durability
C=Energy Saving
D=Elegant Outlook
E=Ease of Installation
F=Reliability of Supply
G=Maintenance
A=Capital
C=Energy
B=Durability
Cost
Saving
A
B
C
Options
1
2
6
Architectural Lighting 2
2
3
6
2
12
Cove Lighting
3
3
4
8
4
24
Track Lighting
3
3
4
8
2
12
Pendants lighting
2
2
3
6
2
12
Chandeliers
1
1
2
4
1
6
Wall sconces lighting 2
2
3
6
2
12
20
The results from Priority Setting Matrix and Weighted Scoring Matrix show the highest
score attained from floor finishes and light fixtures which are granite flooring and cove lighting
as these two materials showed to score the highest for the weighted scoring matrix. Therefore,
VM team proposed and recommended these finishes and fixture to be used for new design in
achieving the workshops objective. The material data of specification is shown in section 6 of
the report.
21
Layout Plan
Followed by the proposed change of area and the elimination of certain areas in the plan,
the overall size of the unit will not change or differ with the original total area. Firstly, the
Bedroom 1 will be extended with the elimination of Bath 1 which is a hidden unnecessary
cost in the design since there is Bath 2 that can be shared among the customers. Secondly,
for the family area, a home bar will be added into the design to fully utilize the functional
area of the unit. Dip Pool and landscape which is considered as an unnecessary cost will be
converted into a terrace where family members or guests of the day may have a coffee while
enjoying the spectacular view of Kuala Lumpur.
Other than that, the wet kitchen would be extended from 11.37m2 to 16.72m2 to be able to
accommodate more people in the kitchen for a more heavy type of cooking such as deep
frying and etc. This is beneficial for people that love to produce home cook food for parties
or festivals. The store room and yard will be adjacent to each other. This is modified as store
rooms are usually not kept neat and tidy thus putting it at the living room may not be a pretty
sight.
Besides that, one of the significant changes is the elimination of a private lobby and
replacing it with a public lift lobby. Furthermore, Work at Home concept will be
implemented and thus an area for the office will be located beside the Master Bedroom for
easy access of the owner of the unit.
22
Space
Bedrooms
Wardrobe
Bathrooms
Family Area
Dining
Living
Foyer
Area (m2)
Proposed
Current Design
Design
98.96
105.76
7.60
7.60
53.07
46.26
16.77
12.58
33.33
33.33
33.33
33.33
18.15
16.73
Proposed Ideas
Extended
Remain
Eliminated Bath 1
Add Home Bar
Remain
Remain
Resized
Dip Pool
22.83
Revised to Terrace
Landscape
10 Dry Kitchen
11 Wet Kitchen
9.08
29.04
11.37
29.04
16.72
5.35
10.60
5.05
10.60
10.10
18.10
11.94
15.74
5.05
39.30
11.94
18.98
Revise to Terrace
Remain
Extended
Combined with
Yard
Remain
Combined with
Store
Enlarged
Remain
Resized
9.11
30.64
1.12
30.64
1.12
Eliminated
Remain
Remain
6.21
6.21
Remain
3.64
1.17
3.64
1.17
457.23
4.19
18.00
457.23
Remain
Remain
New
New
12
Store
13 Utility
14
Yard
15 Terrace
16 Lift
17 Lift Lobby
Private Lift
18
Lobby
19 Staircase
20 Riser Room
Control Unit
21
Room
Tel, Elec CO2,
22 SMA TV &
SEQ, Water
23 Planter
24
Home Bar
25
Office Room
Total Area
23
24
25
6 Material Selection
Material selection process is performed to select the best and most suitable materials
for the project. It is one of the foremost functions of engineering design as this process can
determine the reliability of the design in terms of industrial and economical aspects. Material
selection is very important to know about the best materials for the design and enable the client
to make a good decision before construction stage. If the most appropriate materials is not able
to be found, even though the project has a great design, it may fail to be a profitable project
and the product life tends to be highly unpredictable (Brighthub Engineering, 2016).
During the material selection procedure, a systematic approach is needed for selecting
the best materials. For example, application requirements are required to define at first. The
materials that would best meet those requirements will be selected. Then, by using the method
of elimination, the choices of materials will be narrowed down. Furthermore, the production
techniques have also played a vital role in the material selection. However, the actual
performance of the chosen materials may differ from expectation under different conditions
(Brighthub Engineering, 2016).
The end of material selection is not the end of the whole design process. The design
process and the material selection is a continuous process. After the material selection process,
26
the suitable materials that best fulfilled the requirements may be yet to come. Proper selection
of materials is always advisable to ensure that the materials will perform well and meet the
requirements. To make the chosen materials to perform the desired functions satisfactorily for
a long period of time, improvement of performance in all possible aspects should be considered
(Brighthub Engineering, 2016).
Table 6.1 below shows that the original materials and proposed alternative materials for
finishes in this project:
Finishes
Original materials
Floor
Ceramic tiles
Granite
finishes
Lighting
Recessed lighting
Cove lighting
fixtures
6.1.1 Granite
Granite is a hard, granular igneous rock which contains quartz and feldspars. It is also
a very strong and abrasion resistant material. It is a versatile natural stone product which can
27
be used at indoors and outdoors. The colour ranges from pink and red to light or dark gray or
a mix of these. Generally, the granite is uniform in colour and it has high compressive strength
as well as abrasion resistance (Inspectapedia.com, 2016).
Granite is the alternative choices for floor finishes in foyer, living, dining and family
area in this residential project. This project is a high end condominium project, therefore the
appearance of the flooring finishes is the main criteria for selection of flooring materials.
Besides, the maintenance cost, durability, safety and other criteria are also very important in
selecting floor finishes (IN, 2016).
Advantages
Good Appearance
Granite has a beautiful natural appearance and very distinctive look. Besides, the colour of
granite will never fade. By using this types of flooring at foyer, living as well as dining and
family, visual appearance of these areas can be enhanced. Good appearance of granite flooring
finishes will fulfill the requirement of high end condominium. Therefore, granite is
recommended as another alternative floor finishes for this project.
Durable
Besides the good appearance and distinctive look, the other advantage of granite is
durability. Granite tiles are very durable and can handle a lot of wear and tear. With proper
care and maintenance, granite can last for years and years. The cost of remodeling and repairing
also will be reduced.
28
Scratch Resistant
Granite is a very strong materials and it has another obvious advantages which is resistant
to most scratches. Its appearance can be maintained because of the scratch resistance of granite.
This means that the floor finishes will still look great for a long time. Repairing or maintenance
cost will be reduced as the floor surface can resist scratches.
Easy to Maintain
The high density of granite naturally resists material absorption and stains. Therefore,
granite surface is very easy to keep clean. Because of the hard and smooth nature of granite, it
is unsuitable for acrylic-based products. Hence, neutral detergent is the most suitable detergent
for cleaning the granite surface. Maintenance cost will also be reduced because of the less
maintenance (Abbs A Javadinia, 2016).
29
Cove lighting is one of the basic lighting techniques which built into ledges, recesses
or valences in a ceiling of a room. The light can be directed from a cove on sides of the room
to the ceiling plane in order to provide overall diffuse illumination or either down to the wall
to create a wall washing effect. Cove lighting can incorporate into a wall or can be located
within a ceiling coffer. The source of light of cove lighting is concealed to provide an ambient
atmosphere (Donoff, 2016). It does not produce glare as it is an indirect lighting and gives a
soothing effect to the room.
This type of lighting is popular in contemporary interiors as its light fixture is hidden
and it creates a dramatic effect. It also a great option for solving multiple lighting needs and
suitable for ambient lighting. It is widely used for spaces such as homes, offices, hotels, malls
and restaurant. Therefore, recessed lighting is recommended for the alternative lighting of this
high-end condominium project.
Advantages
Aesthetics
Cove lighting is ideal for decorative purposes and many people use this type of lighting to
decorate their own houses. Cove lighting produces an indirect light to the ceiling or adjacent
walls and the light is hidden. Thus, the overall look of the room can be improved.
As the sources of cove lighting is hidden behind the ceilings or walls, the warmness that
produced by the light will be reduced. Through this characteristic of cove ceiling, the
temperature of the room will not be increased (Led-light.com.sg, 2016).
30
Table 6.1 Cost Plan of Changes of Design before & After the Value Management
Before VM
After VM
Amount (RM)
Amount (RM)
3,500.00
54,000.00
3 Dip Pool
150,000.00
4 Landscape
11,073.33
5 Bath 1
82,124.25
699.60
7,763.77
4,339.11
8 Enlarge Bedroom 1
11,492.48
14,601.64
6,000.00
4,000.00
174,344.02
190,034.98
22,916.67
24,979.17
466,414.12
295,454.90
Item
Description
Addition
Omission
170,959.22
8,889,879.19
31
The Table 6.1 shows the cost plan of the changes in design for the apartment before
and after applied the Value Management into the units. The result shows that it costs more
before VM is applied into the Madge Mansion which is a high-end condominium, with every
unit savings RM 170,959.22. The cost of the whole project is RM 138,959,549.26 before the
VM study, and the cost after implementing VM is RM 130,069,670.07, which means it saves
an overall cost of RM 8,889,879.20 for the clients in this project. It is about 6.4% (RM
8,889,879.2 / RM 138,959,549.26) of the original cost being saved through the Value
Management study.
This also can be expressed as a compound approach which aims to increase the value
of the project. Function and quality of the condominium are improved while cost of the building
decreased in order to increase the value of Madge Mansion Project. The relationship between
value, function, quality and the cost is shown as below:
Value (V) =
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8. VM action plan
Element
1a.
1b.
1c.
1d.
1e.
Home Bar
Changing Floor Finishes
Changing Ceiling Finishes
Changing Lighting Fixture
Changing Curtain Wall
1f.
1g.
2a.
2b.
2c.
3a.
3b.
3c.
3d.
3e.
Personal Office
Extend Bedroom
Extend Wet Kitchen
Combined Store and Yard
Karaoke Room
Solution
Task
Action By
Interior Design
Architectural Design
Interior Design
Architect
Quantity
Surveyor
Mechanical and
Electrical
Engineer
Remained Floor
Space
Mechanical and
Electrical Design
Implementation as per
recommendation
Structural Design
Architectural Design
Reduction of Floor
Space
Additional Floor
Space
Implementation as per
recommendation
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Timeline
Construction
Stage
Design Stage
Project Manager
Construction
Stage
Structural
Engineer
Architect
Quantity
Surveyor
Design Stage
Project Manager
Construction
Stage
Architect
Interior Design
Project Manager
Design Stage
Construction
Stage
Improve Privacy
The priority setting matrix and weighted scoring matrix both shows that highest score
attained from floor finishes and light fixtures, which are granite flooring and cove lighting.
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The savings for the cost per m2 for one unit is a total of RM 413.90 which is a total of
7%. The saving is not that significant as although the unnecessary cost is eliminated, however
since the quality of the proposed materials are of a higher specification, thus the price for the
materials increases as well. On the other hand, if the cost is reflected to all 52 units in 3 blocks,
the savings is up to RM 8,889,879.19 which is approximately same with the savings for the
cost per m2, 6%. The area of the unit is maintained as the VM team is of opinion that a reduction
in space will reduce the profit of the client as reducing the unit area means reducing the
functional or sellable area. On the other hand, increasing the area will increase further the
overall cost of the development. Other than that, if the built-up area is increase, the area
allocated for the facilities will be affected.
Table 9.2 The summary for the changes in cost and area of the unit
Cost per m2
Area
Contract Sum
Before VM
After VM Study,
Savings, RM
% of
Study, RM
RM
or m2
savings
5,470.64
413.90
7%
457.23
0%
5,884.54
457.23
138,959,549.26
130,069,670.07
8,889,879.19
6%
Recommendation
VM study is vital to be implemented in all types and range of projects as it brings
nothing but benefits although some cost is incurred during the study. Currently, only
government projects in Malaysia implemented VM study to all their project in order to ensure
that quality is high with a value for money price. Private developers should also implement it
in their projects to achieve the optimum quality that is time value for money. Other than that,
VMCP and VMIC items must also be present in the form of contract. The proposal submitted
shall provide savings to the client and thus client will average it out the selected a few of them.
In addition, the architect or interior design may use the findings from this research for
their upcoming project or to offer a second idea for their design. Other than the 3 tools used in
this report, there is also other tools. Problems such as eliminating unnecessary cost is vital in
any VM study. The efficiency level of communication between the consultants should be at a
reasonable high level to attain mutual agreement for a better outcome and cutting down
unnecessary process to promote efficiency in work.
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10. References
at:
Inspectapedia.com. (2016). Ceramic, Granite, Marble & Stone Floor Tile Properties.
Available at: http://inspectapedia.com/BestPractices/Floor_Stone_Granite_Marble.php
(Accessed: 26 Nov 2016).
IN,
Led-light.com.sg. (2016). Pros & Cons of Cove Lighting. Available at: http://www.ledlight.com.sg/blog/pros-and-cons-of-cove-lighting.html (Accessed: 28 Nov 2016).
Rangelova, F. and Traykova, M. (2014) Value management in construction project,
PROJECT MANAGEMENT IN CONSTRUCTION, , pp. 429434.
Truecadd.com. (2016). Why Material Selection is Crucial for Engineering Design Process? |
TrueCADD. Available at: http://www.truecadd.com/news/why-material-selection-iscrucial-for-engineering-design-process (Accessed: 26 Nov 2016).
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