Construction Project Management: Success Factors

This assignment delves into the crucial elements of successful construction project management. It examines various aspects, including value management, cost control, quality assurance, interface management, and stakeholder engagement. Students will analyze relevant case studies and research papers to identify key drivers of project success. The focus is on understanding best practices and strategies for effective project delivery in the construction industry.

Running head: VALUE MANAGEMENT
Value Management
Student’s name:
Name of the university:
Author’s note:

1VALUE MANAGEMENT
Table of Contents
Part 1: The Company report............................................................................................................4
1. Introduction..................................................................................................................................4
1.1 Overview of the organisation.................................................................................................4
2. Situational analysis in respect of value management..................................................................5
2.1 5C’s analysis..........................................................................................................................5
2.2 Five phases techniques:.......................................................................................................10
3. Propose feasible and desirable changes.................................................................................12
3.1 Proposing value measurement solutions..............................................................................16
3.2 Periodic milestones to achieve based on proposed changes................................................17
4. Benefits of proposed changes....................................................................................................19
4.1 Value proposition.................................................................................................................19
4.2 Providing solutions to the recent leadership........................................................................20
4.3 Monetary benefits of proposed changes..............................................................................20
5. Implication if not accepting the proposed solutions..................................................................21
5.1 Implications to the company................................................................................................21
5.2 Implication to the stakeholders............................................................................................22
6. Conclusion.................................................................................................................................22
7. The next step..............................................................................................................................23

2VALUE MANAGEMENT
Part 2: The Evidence Review........................................................................................................24
1. Abstract..................................................................................................................................24
1.1 Introduction..........................................................................................................................24
1.3 Conceptual model................................................................................................................25
2. Critique......................................................................................................................................25
2.4 One Main Theme for Value Management...........................................................................25
2.5 Customer Loyalty and the Value Development...................................................................27
2.6 Customer Duration of the Stay and the Value Development..............................................27
2.7 Brand Image and the Value Development...........................................................................28
2.8 Value Added Services and the Value Development............................................................29
3. Future Research Perspective......................................................................................................30
4. Conclusion.................................................................................................................................31
Part 3: Reflection for employability enhancement and leadership................................................32
1. Realisation of critical thinking and core capabilities for consultancy task...............................32
1.1 Requirement of critical thinking for the report preparation.................................................32
1.2 Requirement of core capabilities for report preparation......................................................32
2. Current status evaluation...........................................................................................................32
2.1 Current leadership experience.............................................................................................32
2.2 Current knowledge for value creation.................................................................................33
2.3 Existing skill level and existing competencies....................................................................33

3VALUE MANAGEMENT
2.4 Gap analysis.........................................................................................................................33
2.5 Challenges experienced.......................................................................................................34
2.6 Overcoming the gap.............................................................................................................34
2.6 New knowledge acquired....................................................................................................35
2.7 Emergent conclusion...........................................................................................................35
3. Future Personal Development....................................................................................................35
Reference List................................................................................................................................36

4VALUE MANAGEMENT
Part 1: The Company report
1. Introduction
Value management is an important planning and critical review process that is different
from the concept of work plan, moreover, it focuses to achieve better value with the idea of value
for money concept. Most of the organisations are following value management technique as it
helps to deliver the better-valued results to customers. In historical innovation, value
management came from idea of ‘value analyses' in the subject of General Electric. With the
advancement of time, the concept of Value Engineering came in the USA that helped to use
shared resources in right manner. In this part, Sunway Construction organisation has been chosen
for this report. In first part, the existing value management strategies will be stated and current
inadequacy will be highlighted. Moreover, in the following part, new and feasible changes will
be proposed with value measurement solutions. New strategies and operations with development
results will be discussed with benefits. In last section of the study, potential risks that the
organisation might face if they do not follow proposed solutions will be stated.
1.1 Overview of the organisation
Sunway Group was established in the year 1974 and this organisation has been working
in the field of construction of building, property construction in healthcare and education. This
organisation is operating in more than 51 locations worldwide with 15,000 team capacities.
Sunway Group is focusing mainly on developing sustainable communities with planning on real
estate investment. Sunway Group has been making the Sunway cities in various places over
Malaysia in places like Ipoh, Selangor and Johar. The organisation has commitment to

5VALUE MANAGEMENT
developing strong social, economic and environmental practices in day-to-day operations.
Sunway Group believes in the business in the Build-Own-Operate business model and the
organisation is trying to create value chain operation to make the win-win situation for all the
stakeholders (Sunway.com, 2017). Apart from Malaysia, this organisation has its presence in
China, Abu Dhabi, Singapore, Indonesia and many other places in construction of buildings.
2. Situational analysis in respect of value management
In understanding the condition of an organisation in industry, conducting situational
analysis is helpful. Sunway Group is working in the construction and real estate field and the
value management strategies and current status of values.
2.1 5C’s analysis
Company: Sunway Group organisation has its objectives to innovate and deliver the best
values to the customers. The aim of the organisation is to provide sustainable changes that can
produce value to the stakeholders. In addition, the organisation is trying to build sustainable
relationships that can synergy to the external parties and customers. Sunway Group organisation
is focusing to achieve the highest quality that can excel the competitors in market.
Competitors: Sunway Group has many competitors in the Malaysian market and the
organisation has to analyse the potential capabilities and nature of business competitors in order
to have the clear picture (Walker 2015). The big competitors in the market of Malaysia for
Sunway Group are Conlay construction, Fluor Daniel International, AME construction and
others.
Customers: In the Malaysian market, Sunway Group has the customers mainly of
community people who want to have better community living. More than that, the organisation

6VALUE MANAGEMENT
has customers of local government agencies that want Sunway to build them with health care
centres and educational institutions. Income levels of customers are high for Sunway Group.
Collaborators: Collaboration is needed in Construction Company as Sunway Group is a
large conglomerate in Malaysia. Sunway Group makes a partnership with local agents in
developing real estate and construction projects. The organisation has many suppliers that make
its capabilities and uses the core values.
Climate: The organisation has been working in the Malaysian field for long and political
stability is significant for the organisation to work in the industry. In case of politics, Malaysia is
a multi-party democratic country and corruption can create barriers. In real estate, corruption is
obvious and Transparency International ranks the country Malaysia on 47th rank on the
worldwide basis (Gmelin and Seuring 2014). In addition, Malaysia has vibrant economy and
economic growth of the organisation is averaged 7.5% per year. In GDP, exports come from
37%. In Malaysia, there are three types of people live there, Malay, Chinese and Indian. In case
of developing the technology, Malaysian people are trying to develop in technology, however, in
real estate and construction, technology innovation has been significant. More than 360
multinational companies are in Malaysia.
In this regard, Sunway Group can take benefits of industry in Malaysia and the situation
for business as well. Sunway Group has two goals in economic perspective; one is reduced cost
base and increases the revenue. In managing the value, this organisation follows three main
guidelines; define a service or product through its functionality, the organisation has been using
multidisciplinary team and Sunway Group uses application of structured job plan. As stated by
Kerzner (2013), functional approach of an organisation is related to decrease the cost of the

7VALUE MANAGEMENT
organisation and it can evaluate the value of product. The purpose of value analysis is to describe
the cost necessary to gain the required function. Satisfaction of stakeholders is necessary for
producing values and in construction companies believe in ‘expansive' management of value.
For the last few years, practitioners and management of Sunway Group have been using
the value management that formulates the strategies with executing value management. A
business portfolio is all about setting new capabilities for an organisation that can enable the
organisation in competing in the market (Holzbaur et al. 2016). Sunway Organisation is in real
estate and construction project and this organisation believe in three core values, Humility,
Integrity and Excellence (Sunway.com 2017). It is observed that value management is necessary
for an organisation in construction project to operate in contractual relationship and integration
of various supply chain. In this regard, it is observed that contractual language is needed to be
simple and organisation should provide best value option. Sunway Group does not aim to
achieve value for the resources they have, however, a correct methodology can help the
organisation in delivering the best project through better communication, through team working
and developed supply chain. In each project of Sunway Group is related to the risk matrix and it
can be identified with value management. As opined by Emerson (2013), value management can
be described as team-based techniques that can provide surety in giving best value to the clients.

8VALUE MANAGEMENT
Figure 1: Risk and Value matrix
(Source: Levina and Loss 2013)
Higher risk is related to the greater probability of return high and lower risk is associated
with smaller return. The trade off is associated between return and risk. In first quatrain, high
value is associated with low risk. This contains the actions that would be highly beneficial and
involve only small risks. In case of Sunway Group, it is associated with large market share and
high margins. In second quarter, this contains actions that will be highly beneficial but involve
big risk. For Sunway Group, it is associated to radical innovation and out of market scenario. In
third quatrain, it is associated with low value and it contains the actions that will not be very
beneficial but involve only small risk. Sunway Group does this with lower market share and have

9VALUE MANAGEMENT
rules dictated. Fourth quatrain contains actions that will not be very beneficial and involve in
higher risk. Sunway Group can have value of square invaders and innovations.
Sunway Group needs to satisfy the process of value management through cost cutting
method. Through the technique of value management, Sunway Group can maximise the values
in any circumstances, only not when the issues occur. The process and techniques of value
management are related to value engineering process that can ensure the functional process with
five phases. There are five phases are needed to continue regularly as expectations can change
delivered the results. Value management of Sunway Group includes these five steps in meeting
the stakeholders or clients expectations.
Figure 2: Strategic value concept

10VALUE MANAGEMENT
(Source: Emerson 2013)
2.2 Five phases techniques:
Sensemaking: In the first stage of sensemaking, it contains the functional analysis with
using techniques of scenario planning. In the first stage, Sunway Group organisation can use soft
system analysis, planning of the desired outcomes and gap analysis in order to understand the
situation. Sunway group first identifies the benefits that are expecting by the stakeholders of
them with offered and expected ratios. The sensemaking process starts with stakeholders'
analysis and then it goes to functional analysis and then it goes to critical success factors and the
last stage is related to the key performance indicators.
Ideation: Value management is creativity technique and in the stage of generation of
alternative, this creativity is necessary. However, ideation stage increases the scope of possibility
and enhances the scope of project (Male et al. 2017). Sunway Group's management team checks
the possible solutions if the stakeholders' of the organisation get changed and redevelopment
time is required at this stage. Identifying alternatives and their benefits can be judged using
‘brainstorming' technique. In case of large stakeholders like the organisation of Sunway Group,
they take the strategy of Nominal Group Technique, in which participants write the responses
and facilitator collects the responses. The answers then decorate with top ranked ideas and
management does group votes for each concept.
Elaboration: As stated by Goetsch and Davis (2014), two traditional processes of value
engineering are amalgamated in this stage, development and evaluation. In the previous stage,
various ideas are formulated and in this stage, validation of correct alternatives is checked with
profit-making options. However, Sunway Group uses vertical thinking process to have ideas like

11VALUE MANAGEMENT
cost-benefit, risk analysis and weighted matrix. In the first stage, it is necessary to alienate all the
non-viable alternatives that can generate options. In the following step, it is to develop, modify
and combine all the viable alternatives in the stage. In the later step, the management body of
Sunway Group compare options with KPIs and CSFs.
Decision: In the decision-making process of the management body, in the previous time
of Value Engineering, it was termed as recommendation; however, the organisation needs to
make a presentation with decision-making. Sunway Group organisation takes the help of an
external consultant in making the business decision in value management. In recent time,
Sunway Group is recently shifting the idea to group decision making.
Mastery: This stage is about ‘style of management’ with corporate governance takes the
decision in delivering the product and services (Fleming and Koppelman 2016). In construction
projects of Sunway Group, the organisation needs to prioritise resources that help the
organisation to have the sustainable value. In this stage, the organisation sets the deliverable
milestones.
Following this phases in value management in the organisation, Sunway group has to
maintain the change management technique and with contribution of benefits. However,
inadequacy in the value management process is that following these steps does not make the
organisation innovative and it creates challenges. Sunway Group needs seekers as the
organisation should know what the ‘clients’ want not only the management to have idea of new
services or products. Another adequacy is about market readers as the organisation follows fast
followers approach. Lastly, these five phases techniques do not provide emphasis on technology,

12VALUE MANAGEMENT
however, it is needed that Sunway Group needs to apply inside-out aspect to use superior
technology in construction.
3. Propose feasible and desirable changes
In managing a value within an organisation, HR system needs to be perfect. Performance
Management System within an organisation can be helpful to manage the employees'
performance. However, in the first phase, planning is necessary with employees and managers.
Managers can set the job description within the organisation with action plan, this work plan
must be followed by the employees. In the second phase, monitoring the performance
management within the organisation means meeting the objectives. Monitoring can identify the
issues and barriers (Van Dooren et al. 2015). This process can share feedback. While conducting
monitoring, giving reviews and listening to the employees can help to maintain values. Phase 3 is
related to the reviewing the overall system and that can be self-assessment. Taking corrective
measure can give benefits both employees and management. However, in Construction
Company, this value management technique will not be helpful. Sunway Group needs to change
the value management technique with the organisation as some of the inadequacies can lead to
difficulty for the organisation. In this regard, the organisation can have product value
management strategy to maintain Product Life Cycle.
Product Life Cycle Technique
This product life cycle has two distinct categories with design to value and design to cost.
Design to value is a capability that helps an organisation to assess the proposition of a
value of a particular product. This value proposition can be done in the development of idea as it
can give competitive advantage to the organisation. This process is related to the product cost-

13VALUE MANAGEMENT
drivers as this is associated with raw materials, distribution and manufacturing process. The
relationship between price and product or service can increase or decrease through the design to
value model. In this sense, Sunway Group will have the efficiency in demand analytics as it
would help in understanding the customer purchase decision. In addition, this would help the
organisation in clean-sheet modelling that helps an organisation to have expected cost of each
service or product. Teardown is the approach in which companies disassemble the products for
the clients or customers to show how it is different from the competitors (Alexander 2013). This
approach is will be helpful for Sunway Group to show the functional and technical differences in
strategies that would reduce the cost.
Figure 3: Product Life Cycle
(Source: Mir and Pinnington 2014)

14VALUE MANAGEMENT
Design to cost is opposite of design to value and it solely designs to reduce the cost of the
product of the organisation. Design to cost assists the organisation to manage the cost and risks
in product development. It makes target cost of the product as independent and in case of mature
industry like construction; this design would be helpful to cut the prices of real estates. Sunway
Group needs to buckle up the supply chain and in long-term basis, the organisation needs to
focus on manufacturing process and design. In reducing the cost, the organisation can improve
the techniques to make process driven that can be a bottom-up approach (Martinsuo and Killen
2014). The value chain of the organisation needs to be broken up and benchmark matching.
Developing appropriate cost driver is important to make more comprehensive focus on the
manufacturing process.
Sunway Group has three core values, humility, integrity and excellence; however, these
three values can be fuelled up to have the core capabilities. This product life cycle model can
make a perfect organisational structure for the organisation with product value management with
having formal and informal elements. The second core capability will be comprehensive
analytics of the market, the organisation analysed the product demand in the market and
customer affordability. Lastly, integrated product value management will enhance the
engineering capabilities to have stable goal of the organisation.
Rappaport model
Shareholder value can be defined as business term and it is phrased as shareholder value
maximisation. This shareholder value implies as ultimate measure of organisational success in
can enrich shareholders. This concept became popular in the year 1980s. In order to do market
capitalisation of an organisation and in adding value of the organisation, this model can increase

15VALUE MANAGEMENT
the wealth of each of the shareholders. The organisation can implement planned action; the
management can needs to ensure that the return of the shareholder should be increased through
cost-of-capital concept. The organisation can ensure that the return of shareholders’ money must
back. The shareholders can invest other assets in same amount of risks and they apprehend to
have more return. As stated by Turner (2016), Rappaport model is the part of organisational
capitalisation and the part of equity and it is opposed to long-term debt.
Maximising the value of shareholder
This administration guideline, likewise known value based management, expresses that
administration should as a matter of first importance consider the interests of investors in its
business activities. In spite of the fact that the lawful commence of a traded on an open market
organization is that the officials are committed to augment the organization's benefit, this does
not suggest that administrators are legitimately committed to augment shareholder value. There
are seven main elements of shareholder’s value:
Operating margin, revenue, cash tax rate, cost of capital, incremental capital expenditure and
competitive advantage period.
Agency theory and shareholder value
Agency theory is the investigation of issues portrayed by detaches between two collaborating
parties: a vital and a specialist. Office issues emerge in circumstances where there is a division of
work, a physical or worldly detach isolating the two gatherings, or when the central contracts an
operator for particular mastery. Rappaport model seeks that the executive board of the
organisation must be independent. This model seeks for more transparency and the firm can do
more scrutiny.

16VALUE MANAGEMENT
3.1 Proposing value measurement solutions
Function analysis system technique (FAST)
Functional analysis system technique was first created by Charles Bytheway as this
process helps the individuals from various backgrounds to communicate and solve the issues
with multidisciplinary consideration. Moreover, in value management, it is required to have idea
on ‘verb-noun’ functions to comprehend complex system (Colin and Vanhoucke 2014). FAST
analysis is not an end product; rather it is beginning with various subsequent approaches. FAST
is the significant phase of value engineering phase that provides innovative avenues for the
organisation. As Sunway Group is lacking the innovation, this FAST model will help them.
FAST model is a horizontal orientation of How and Why dimension. These questions are simply
asked as these are systems functions. When ‘why' question is asked the main objective is to
express the function of the left side. Careful analysis of need is required and project will satisfy
the design and stages of construction. Sunway Group will not do any project without definition
from the poor timing or excessive operating cost. ‘How’ question is related to the ‘wish list’ of
stakeholders’ revenue that is related to the project. The relative value and importance will be
judged by establishing perceived values. This project cost must be achieved through delivering
the optimum quality and performance (Turner 2016). The level of risk is associated with value
management procedure.
High Value Low Value
High risk Strategic critical Strategic security
Low risk Tactical profit Tactical acquisition

17VALUE MANAGEMENT
Figure 4: FAST diagram
(Source: Miles 2015)
3.2 Periodic milestones to achieve based on proposed changes
Milestone no. Milestone name Due achievement
date
Actual /forecast
achievement date
Comment
1. FAST analysis 01.01.2018 01.03.2018 This will help the
organisation
Sunway Group to
have better value
management

18VALUE MANAGEMENT
through adding
performance and
capacity dividing
the cost.
2. Design to value This multi-
dimensional
approach can
enable Sunway
Group to
improve margins.
3. Design to cost 01.02.2018 01.04.2018 This cost
management
technique needs
to be achieved on
time that can
control the cost
of project
development on
time.
4. Budget analysis 01.03.2018 01.05.2018 This analysis
explains where
and how money
comes and out of

19VALUE MANAGEMENT
the project.
5. Project valuation 01.04.2018 01.06.2018 This explains the
potential merit
and investment
of the
organisation.
Table 1: Periodic Milestone to achieve proposed change
(Source: Self-developed)
4. Benefits of proposed changes
4.1 Value proposition
The existing value management methods may not be able to produce effective value to
the organisation, in this respect; new product life cycle method will be helpful. Moreover,
organisation can use a FAST technique to have value management method. Design to value
provides an analysis towards customers' needs, features, attributes and efficacy. These are the
value proposition of a product. However, Sunway Group is in construction project and real
estate, their products and services provide value proposition including prices. Sunway Group can
entail analysis of all costs and that would give a reduction of costs. In this respect, Sunway
Group can create UVP (Unique Value Proposition) that can make benefit to the customers with a
promise. The clients of the organisation will have the best values in the organisation. One
organisation cannot provide all things to the clients as clients expect great communication, pain-
free punch, cleanliness, budget assistance, training and education, best price and best quality (Yu

20VALUE MANAGEMENT
et al. 2016). These are the things that create values for the construction companies. Maintaining
UPV for Sunway Group will make it niche business.
4.2 Providing solutions to the recent leadership
Sunway Group has board of directors in taking any business related system. Founder
chairman of the organisation is Dr Jeffrey Cheah gives his focus mostly on sustainable
development. Deputy Executive Chairman of the organisation is Razman M Hashim. Sunway
Group organisation follows hierarchical structure and communication flows bottom-down
approach. In construction organisation, managing value is important as it is related to the demand
analytics with value proposition.
In this regard, Sunway Group can follow value based company culture that can provide
internal and external stimuli to the employees. In case of competition and developing new
projects and cut cost; the organisation needs value based leadership styles and that must come
from all levels. Value based leadership is all about evaluating a team through performance of
team members Managers need to see the performances of the team members (Larson and Gray
2013). The leadership changes must follow innovation and codify the cultural decision is needed.
Hiring practices are needed to change with stating the values of the organisation. The leaders
must possess the qualities of delegate and they should know communication process.
4.3 Monetary benefits of proposed changes
Strategic value management for Sunway Group can provide innovation, decrease the cost
and mitigate the risk. In today's world, global economy provides competition among companies;
overall market leaders are trying to capture the values. Product life cycle is the process of
strategic cost management and this process would help the organisation to do value management.

21VALUE MANAGEMENT
This process has two facets and one is designed to cost (DTC). This process helps to make
bottom line growth of the organisation. This process is associated to design, process and
material. In the previous case, the organisation has to cross five phases, however, in a new
process, organisation can develop high-level cost estimate with reviewing cost estimate. Sunway
Group can perform deep-dive profitability that can drive target cost. The organisation can reduce
the cost of pricing in each project through processing the materials, design, features and
manufacturing location (Gronroos and Voina 2013). Design to Cost (DTC) technique helps to
control the variables cost and excavation cost. Most importantly, this process considers
alternative products with creating a project plan.
5. Implication if not accepting the proposed solutions
5.1 Implications to the company
Five phases of the value management technique have some of its loopholes and a new
technique of product life cycle of value management for projects has been explained. This
technique can be helpful for the organisation. However, if it is not followed by the organisation,
the organisation may not follow the solution which is unique and relevant. In five phases
technique, Sunway Group has to check the values in order to satisfy the stakeholders’
expectation. The organisation has to share the capabilities that would give those benefits. The
organisation has to analyse the expected benefits, required capabilities with available
capabilities. Consequently, esteem turns out to be more than a partner fulfilment versus assets
utilized proportion; it must incorporate the ideas of offered benefits and accessible capacities.
High value is gotten from the harmony between the four components appeared, advantages
(fulfilment of the partners' needs and desires). Required capabilities, however, more vitally: what

22VALUE MANAGEMENT
capacities are accessible (assets, competency, mastery, and so on) and what can be offered with
respect to these abilities. However, in the new value management process, Sunway Organisation
will have stable goal that can incorporate the design of the organisation with the ability to
compete with rivals. Moreover, this FAST analysis value analysis solution can give the
organisation to strive for continuous improvement principles. Project participants will be
motivated through effective leadership quality within the organisation.
5.2 Implication to the stakeholders
For an organisation like Sunway Group, the stakeholders of the organisation are site
joiner, labourer, general construction, ceiling fixer, Thatcher, roofer, demolition operator and
others. Most importantly, agents and clients are the most significant stakeholders of the
organisation. The existing process has five phases, in the fourth phase of decision; the
stakeholders' engagement is needed. In the process of new value management process,
stakeholders' satisfaction with resource used ratios is significant. Stakeholders will get benefitted
through analysis of the market, project features and project analysis through Design to value. In
Design to cost analysis, stakeholders' engagement is necessary for design, material and process
of the project that would give reduction of cost. Moreover, FAST analysis of value management
solution can establish the meaning of value to the clients. The stakeholders will get to know the
project objectives and goals. Most importantly, with the help of stakeholders, these objectives
can be achieved. In case of a tactical acquisition, inputs are important for all stakeholders.
6. Conclusion
Value management is the technique for decision to manage the vagueness of partners'
needs and desires and the multifaceted nature of a changing business condition at program level

23VALUE MANAGEMENT
and undertaking start. It brings structure and objectivity to what has frequently been a very
subjective and instinctive process and gives a system to basic leadership all through the
conveyance procedure. In this specific situation of Sunway Group, it is not potential esteem that
is the objective but rather acknowledged esteem. Sunway Group is facing the issues regarding
existing value management techniques of innovation, cost management and team structure. The
entire reason for value management is to strike the most ideal adjust among these components to
offer the best arrangement amongst expected and offered benefits while considering
achievability, not particularly to diminishing resources. A new value management plan has been
proposed that would give the organisation a better approach.
7. The next step
In order to implement new value management process within the organisation of Sunway
Group, the organisation has to analyse the organisation’s capability to utilise this technique. In
case of FAST analysis of value with cost ratios, actual cost, estimated cost, allocated target cost
and budgeting. Sunway Group organisation can use Clustering Function method to analyse of
FAST model. This will help the organisation in reducing the cost in a project. Implementing
financial team to design to cost target to identify customers’ sensitivity will be first step for the
organisation in managing product life cycle.

24VALUE MANAGEMENT
Part 2: The Evidence Review
1. Abstract
This part of the assignment delves with aspect of reviewing the literature in respect of value
management. Within the construction industry, value management is associated with the aspect
of evaluating the alternative construction materials as well as methods for saving money without
making an impact on building performance or the programme related to construction. It has
turned out to be an effective tool that is being used in the construction industry.
1.1 Introduction
Value Management is considered being a method that is associated with the aspect of
explaining, maximizing as well as actualizing ‘value for money’. These are methodical team-
supported combined approaches that try securing maximum output from limited resources. At
the primary stages regarding a project, value management will be providing a remarkably
powerful tool for exploring the objectives as well as aspirations regarding a project from the
perspective of a client. A major distinguishing factor within the concept of value management
and various other methods is that value management is concentrating upon the anticipated
project outcome. Only when there occurs a clear establishment, understanding as well as
agreement regarding the outcome, will the process be addressing the question as to how it’s
delivery will occur (Nikal 2017). There occurs the representation of the outcomes within a
statement of project objectives, articulated in respect of the anticipated beneficial aspects
regarding the business. These are connected via the ‘value drivers’ with the design objective.
Afterwards, with the evolvement of the project, these will be having a direct relationship with the
solutions relating to design as well as what is built (Verma 2017).

25VALUE MANAGEMENT
1.3 Conceptual model
Figure 5: Conceptual diagram
(Source: Self-developed)
2. Critique
2.4 One Main Theme for Value Management
A major theme is respect of value management is the “requirement for shifting from the
cheapest alternative towards the ‘best value’ alternative”. The application of value management
within the construction projects will be having a major dependence upon the value of a specific

26VALUE MANAGEMENT
project as well as the level of the risks involved (Potts 2014). The below-mentioned diagram will
be indicating a distinctive risk as well as value matrix that can be utilized for identifying the
requirement as well as prerequisite regarding value management In respect of strategic –
critical projects (high risk, high value), a complete value management method is mostly
acceptable. In respect of strategic – security projects (high risk, low value), as well as tactical –
profit (low risk, high value) projects, the requirement regarding value management, will be
depending upon the advantages of each project. In respect of tactical –acquisition projects (low
risk, low value) there might not be the requirement for an exercise regarding value management.
Value management can be considered being an exercise that is having low-cost and high
benefit. When incorporated within the methodology of project management in the primary phase
of the project life cycle, the expense might be almost insignificant due to the reduced
requirement in respect of ensuring reviews as well as scopes to substitute value management in
respect of certain scheduled appraisals as well as quality audits that are always essential
(Fleming 2016). Value management of an organisation can be categorised into three parts, the
useful reasons must be fulfilled by the organisation, advantages that the organisation is going to
have, features of the organisation that are important for the organisation.
The advantages of a review regarding value management are often viewed in terms of
better quality as well as lower expenses. The agreement, as well as mutual consideration within
the stakeholders, clear goals, lower threat of changes regarding opportunity as well as better
communications, will assist in ensuring that the project will be meeting the client objectives and
delivery will be occurring within the pertinent structures (Rumane 2016).

27VALUE MANAGEMENT
2.5 Customer Loyalty and the Value Development
Customer loyalty and the Value development comprises of the three R’s, which are
known as Reward, Recognition as well as Relevance. In respect of the first R i.e. reward, it can
be stated that it is the tangible gratitude that is shown to the customers in respect of their
behavioural changes and permitting the construction company in gaining insights into what they
are valuing as customers and are regarded as major advantages (Leung 2013). In respect of the
second R i.e. recognition, it can be stated that to issue a hard loyalty currency, the construction
company will be recognizing the value customers with various ‘soft benefit’ gestures. The
construction company feels that the best customers are having a higher anticipation regarding
both recognition as well as reward. In respect of the third R i.e. relevance, it can be stated that
the traditional communication channels are increasingly getting sidelined by rising mediums like
social media as well as mobile and making a connection with the customer has turned out to be
an equally disjointed task. Therefore, having relevance will be carrying its individual rewards
(Hardin 2015).
2.6 Customer Duration of the Stay and the Value Development
In this context, it can be stated that giving an upgrade will assist in value development.
When certain customers are having an active as well as open engagement with the brand
regularly, they are considered being the most suitable individuals for providing complete
experience. For instance, if there is a premium service, then the up-gradation should be provided
for free. The customers should be provided with unique features, services, as well as resources.
There is also the need to move beyond the actual service and providing the customers with
something that will be making their life easier on a daily basis (Lee 2015). Therefore,
understanding the customers, figuring out what will be making their lives easier as well as

28VALUE MANAGEMENT
building it. Moreover, having the best quality product will assist in value development and will
also help in having loyal customers. Therefore, it is suggested that if the business is required to
be built on loyal customers, then it is necessary to do something more than the expectation of the
mass customers (Mir 2014).
2.7 Brand Image and the Value Development
Brand image is considered being the customer’s current view regarding a brand. Brand
image assists in expressing the manner in which the customer is thinking about the brand as well
as the feeling that the brand will be emoting when the customer is thinking about it. There occurs
the development of the brand image of the construction company based on the experience that
the customer might be having in relation to the brand. This is the overall impression in the mind
of the customer that gets created from various sources. Customers are developing different
relations with the brand. Depending upon such relations, the brand image gets formed. Brand
image assists in developing as well as conveying the character of the product in a distinct
manner, which varies from the competitor’s brand image. The brand image will comprise of
different associations within the mind of the customer which relates to value development. These
include characteristics as well as advantages (Harris 2013). Traits regarding brand are considered
being the operational associations with the brands that the customers are having. They can either
be specific or concept-based. There occur three kinds of benefits such as functional benefits,
emotional benefits as well as rational benefits. Therefore, attributes regarding brands are
considered being the customer’s overall evaluation regarding the brand. Along with that, it needs
to be stated that the most significant task in respect of the construction company is ensuring that
the company’s brand image is having an alignment with the identity of the brand, or in what
ways it wants to get perceived (Fellows 2015).

29VALUE MANAGEMENT
2.8 Value Added Services and the Value Development
The Value Added Services in respect of Value Development comprises of the attributes
such as financial linkages, technology linkages, marketing tie-ups, technology advisory services
by respect of competitiveness of individual units, environmental solutions, as well as
mobilization of investment (Cai 2015). The major function of the Value Added Services is
ensuring that the B2B relationships within the ecosystem of the VAS are properly addressed. The
functional aspect will be streamlining primarily the efforts associated with the sourcing of the
content, VAS product engineering as well as VAS platform management in various categories of
services (Walker 2015). The functional aspect will also be supporting the commercial units of
the construction company in respect of marketing as well as sales of Value Added Services to the
end customers.
The goal of Value Added Services functional aspect is associated with addressing the
B2B associations relating to the VAS ecosystem that focuses on the building of the network
delivery capabilities required in respect of Value Added Services, efficient relationship
management with the VAS content providers as well as providers of applications as well as
services (Yin 2016). In addition, there is the need for creating as well as developing a huge
content database in respect of every segment of VAS for sufficiently addressing the demand of
the market as well as needs of the customers (Val 2014). New value management technique is
feasible and it has many benefits from management’s perspectives. This life cycled technique
provides clear dentition of values to clients and for organisation. This tool will help the
organisation in optimising the balance in stakeholders’ desires and expectations. This model and
strategy will provide the benefits of project clear in brief that ensure delivering the business in

30VALUE MANAGEMENT
right way. It refines the business cases for the project and it is essential for design development
with collaborative working with performance and quality.
3. Future Research Perspective
Value management relating to project portfolios in the construction companies are
centred around the aspect of maximizing the commercial value as well as identifying the future
prospects relating to business. Also, from the future research perspective, it can be stated that the
quality of design, as well as design information quality, will be having a direct impact on the
duration of the project within construction (Surlan 2016). However, the process of design will be
taking place regarding a transaction within the client as well as design professionals before any
involvement of the construction organization. Before the aspect of introducing the SMART value
management, the value process or value engineering is required to be applied in the project for
dealing with the problems related to design (Kelly 2014). Therefore, it can be stated that the
value management method will be retaining three basic aspects that comprise of functional
aspects, cross-functional teams as well as a structured method. At the strategic organizational
level in respect of planning, the method is having a role in respect of programme designing that
is necessary for delivering the strategic advantages (Bodie 2014). In addition, the functional level
method utilization will be continuing to develop and will be used for dealing with the challenges
associated with the aspect of identifying the areas of poor value, maximizing the utilization of
human resource as well as developing innovative methods for performing major activities (Oke
2017). Lastly, it can be stated that the new value management applications are continuously
emerging, which makes it an effective tool in respect of entrepreneurial growth.

31VALUE MANAGEMENT
4. Conclusion
In conclusion, it can be stated that value management assists in achieving maximum
benefit, and it needs to be carried out from the early levels of a project. Exercises regarding value
management can also be used for the recovery of cost divergence, which might become evident
when there occurs the preparation of the reports related to design. The advantages of value
management review are often considered in respect of enhanced quality as well as lesser
expenses. There is also the requirement for shifting beyond the original service and providing the
customers with something that will be making their life easier on a daily basis. Therefore,
understanding the customers, figuring out what will be making their lives easier as well as
building it. Moreover, having the optimum quality product will assist in value development and
will also help in possessing loyal customers. As a result, it is recommended that if the business is
required to be built on loyal customers, then it is necessary to do something more than the
expectation of the mass customers. In addition, reduced threat of changing aspects in respect of
scopes as well as enhanced communications will support in ensuring that the project will be
meeting the customer goals and delivery will be occurring within the pertinent parameters.

32VALUE MANAGEMENT
Part 3: Reflection for employability enhancement and leadership
1. Realisation of critical thinking and core capabilities for consultancy task
1.1 Requirement of critical thinking for the report preparation
In order to do the report, I have been able to increase my knowledge in value
management. Critical thinking is needed in preparation of a report based on the topic to have
clear idea about the concept. Moreover, thinking rationally makes vivid connection to the logical
ideas of the topic. Practical knowledge increases employability skills that would help me in
critical situation I love to questions myself in every assumption I faced in my life to have
argument with.
1.2 Requirement of core capabilities for report preparation
In order to complete the report based on Sunway Group on value management, I have
been faced with difficulty with ideas of value analysis techniques. Moreover, core competency
means harmonised combination of various resources that can distinguish the marketplace. Core
capabilities help one to use his/her resources perfectly. I have knowledge in marketing, using of
resources and core competencies of value analysis.
2. Current status evaluation
2.1 Current leadership experience
I have always been a monitor of my class and I possess some of good leadership traits
within me. I have good decision-making skills with personality to manage a team. I have
democratic type of leadership. I like to complete the work on time and in managing a team, I

33VALUE MANAGEMENT
would like to teach the team to finish the work on time. Currently, I possess the democratic
leadership style as I believe in participative leadership style. I believe in active participation in
group to all members that increase shared knowledge within a team. In compiling the report, I
followed this technique to increase my knowledge about the subject.
2.2 Current knowledge for value creation
Most of the organisations focus on value creation as the organisations wants to provide
better value to the customers who buy their products and services. The shareholders of the
organisations also want to observe the stake of them as value. Creating value is important as
value creation can increase brand image of the organisation. In this respect, I think, organisations
are trying to be into productivity and creativity, like new technologies, process and material used
for project. Continuous innovation is the key to improvement of value of the organisation.
2.3 Existing skill level and existing competencies
In the management sector, one person must have skills and competencies to achieve the
desired outcomes. In completing the report of value management, I got to know some of my
leadership traits and core competencies. My existing skills in leadership are based on democratic
leadership with social intelligence. However, interpersonal skills can be taken as soft skills for
the employees and I can communicate with my co-workers. In managing value of an
organisation, I can manage the employees well. In today’s world, managing competencies is
important that can increase social emotional level.
2.4 Gap analysis
In conducting the consultancy report of value management based on Sunway Group, I
have faced difficulty in having the clear idea about value management techniques used by

34VALUE MANAGEMENT
Sunway Group. In five phase’s analysis, I detected some of the factors that the organisation used
in managing value. I suggest product life cycle as a value management technique that would be
helpful in taking the solution through FAST analysis. A knowledge gap has been detected in
using FAST analysis as it contains some financial calculation with value engineering. However,
my core competency does not include financial calculation knowledge; hence I faced issue in
calculating budget ratios and QFD. I have used theoretical and practical knowledge in most of
the occasions; however, in reduction of cost analysis, financial knowledge gap has produced
issue.
2.5 Challenges experienced
Through the knowledge gap of financial calculation and giving an idea of project
milestones, I have faced challenges. In FAST analysis, cost improvements analysis of project
cannot be determined by me. However, my employability skills and career improvement, I am
not going to be into cost or budget section. In managing a project with a team I will try to
analyse the programmes and teach them with my knowledge. I suggesting new value
management technique, I have faced issue in selecting the right strategy for the organisation.
2.6 Overcoming the gap
My major challenges in completing the tasks were two, financial analysis and selecting
new feasible value management strategy for Sunway Group. In overcoming financial analysis, I
provided the simple theoretical perspective with diagrammed presentation. Diagram helps me to
convey my thought well. Moreover, in overcoming suggesting value management technique, I
studied various articles on project management and value management technique in Construction
Company. Value management is an umbrella term and that can be used in various spheres and I

35VALUE MANAGEMENT
wanted to comprehend this into Construction Company with developing new projects and
existing projects both.
2.6 New knowledge acquired
I have gained knowledge in value management technique in construction projects and
Construction Company. I have gained my idea in FAST analysis that is based on HOW-WHY
operation. I acquired my idea in product life cycle model analysis; however the main focus was
Design to value and design to cost techniques.
2.7 Emergent conclusion
This consultancy report gives me opportunity to have knowledge on value management
on Construction Company. Value management deals with value creation and value development
of an organisation. Most significantly, the organisations should engage with the stakeholders in
order to develop good understanding. In developing my leadership skills, I have developed the
decision-making capacity that is related to the knowledge acquisition. In developing
employability skills, I have gained the concept of project management with management.
3. Future Personal Development
In developing personal development, the employability skills and leadership skills, both
are important as self-knowledge and self-understanding both are important. I have to develop
personal vision as in which direction I need to go. A table containing my goals and objectives
with action plan will be helpful for me to achieve my desired place. Communication skills and
relationship skills of mine are fine, however, I lack confidence in some of the spheres and
knowledge gap can bring issue to me.

36VALUE MANAGEMENT
Reference List
Alexander, K. ed., 2013. Facilities management: theory and practice. Abingdon: Routledge.
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. New York: McGraw-Hill
Education.
Cai, J. and Chen, Z., 2015, January. The Research on Communication Networks Construction
Based on Earned Value Analysis Method. In Network and Information Systems for Computers
(ICNISC), 2015 International Conference on (pp. 270-272). IEEE.
Colin, J. and Vanhoucke, M., 2014. Setting tolerance limits for statistical project control using
earned value management. Omega, 49, pp.107-122.
Emerson, J., 2013. The blended value proposition: Integrating social and financial
returns. California management review, 45(4), pp.35-51.
Fellows, R. and Liu, A.M., 2012. Managing organizational interfaces in engineering construction
projects: addressing fragmentation and boundary issues across multiple interfaces. Construction
Management and Economics, 30(8), pp.653-671.
Fellows, R.F. and Liu, A.M., 2015. Research methods for construction. New Jersey: John Wiley
& Sons.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Sydney: Project Management Institute.

37VALUE MANAGEMENT
Gmelin, H. and Seuring, S., 2014. Achieving sustainable new product development by
integrating product life-cycle management capabilities. International Journal of Production
Economics, 154, pp.166-177.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: Pearson.
Grönroos, C. and Voima, P., 2013. Critical service logic: making sense of value creation and co-
creation. Journal of the academy of marketing science, 41(2), pp.133-150.
Hardin, B. and McCool, D., 2015. BIM and construction management: proven tools, methods,
and workflows. New Jersey: John Wiley & Sons.
Harris, F. and McCaffer, R., 2013. Modern construction management. New Jersey: John Wiley
& Sons.
Holzbaur, E., Ross, J. and Rothrock, T., 2016. Epro Product Life Cycle: Guidance For A
Successful Management Phase. The value in Health, 19(3), p.109.
Kelly, J., Male, S. and Graham, D., 2014. Value management of construction projects. New
Jersey: John Wiley & Sons.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. New Jersey: John Wiley & Sons.
Larson, E.W. and Gray, C., 2013. Project Management: The Managerial Process with MS
Project. New Jersey: McGraw-Hill.

38VALUE MANAGEMENT
Lee, J.S., 2015. Calculating cumulative inefficiency using earned value management in
construction projects. Canadian Journal of Civil Engineering, 42(4), pp.222-232.
Leung, M.Y., Yu, J. and Liang, Q., 2013. Analysis of the Relationships between Value
Management Techniques, Conflict Management, and Workshop Satisfaction of Construction
Participants. Journal of Management in Engineering, 30(3), p.4
Levina, N. and Ross, J.W., 2013. From the vendor's perspective: exploring the value proposition
in information technology outsourcing. MIS quarterly, pp.331-364.
Male, S., Kelly, J., Gronqvist, M. and Graham, D., 2017. Managing value as a management style
for projects. International Journal of Project Management, 25(2), pp.107-114.
Martinsuo, M. and Killen, C.P., 2014. Value management in project portfolios: Identifying and
assessing strategic value. Project Management Journal, 45(5), pp.56-70.
Miles, L.D., 2015. Techniques of value analysis and engineering. London: Miles Value
Foundation.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.

39VALUE MANAGEMENT
Nicał, A.K., Książek, M., Nowak, P., Rosłon, J. and Foremny, A., 2017. Distance Learning
within Management in Construction–Polish, Norwegian and Icelandic Experiences in Blended
Learning. Procedia Engineering, 196, pp.483-490.
Oke, A.E. and Aigbavboa, C.O., 2017. Drivers of Sustainable Value Management.
In Sustainable Value Management for Construction Projects. Berlin: Springer International
Publishing.
Potts, K. and Ankrah, N., 2014. Construction cost management: learning from case studies.
Abingdon: Routledge.
Rumane, A.R., 2016. Quality management in construction projects. Boca Raton: CRC Press.
Seuring, S. and Gold, S., 2013. Sustainability management beyond corporate boundaries: from
stakeholders to performance. Journal of Cleaner Production, 56, pp.1-6.
Shokri, S., Ahn, S., Lee, S., Haas, C.T. and Haas, R.C.G., 2015. Current status of interface
management in construction: Drivers and effects of systematic interface management. Journal of
Construction Engineering and Management, 142(2), p.04015070.
Sunway Group. 2017. Sunway. Available at: https://www.sunway.com.my/ [Accessed 1 Sep.
2017].
Surlan, N., Cekic, Z. and Torbica, Z., 2016. Use of value management workshops and critical
success factors in introducing local experience on the international construction projects. Journal
of civil engineering and management, 22(8), pp.1021-1031.
Turner, R., 2016. Gower handbook of project management. Abingdon: Routledge.

40VALUE MANAGEMENT
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public
sector. Abingdon: Routledge.
Verma, A., Pathak, K.K. and Dixit, R.K., 2014. Earned value analysis of construction project at
Rashtriya Sanskrit Sansthan, Bhopal. International Journal of Innovative Research in Science,
Engineering and Technology, 3(4), pp.11350-11355.
Walker, A., 2015. Project management in construction. New Jersey: John Wiley & Sons.
Yin, H.W., Yang, H.J. and Gao, H.J., 2016. Research on Cost Management of Real Estate
Project Construction Phase Based on Value Engineering: The Observatory World Project of
China State Construction Property Company as an Example. In Proceedings of the 22nd
International Conference on Industrial Engineering and Engineering Management 2015 (pp.
351-360). Atlantis Press, Paris.
Yu, A.T., Shen, Q., Kelly, J. and Hunter, K., 2016. Investigation of critical success factors in
construction project briefing by way of content analysis. Journal of Construction Engineering
and Management, 132(11), pp.1178-1186.