Journal of Seybold Report ISSN NO: 1533-9211
OVERCOMING THE IMPACTS OF COVID-19 OUTBREAK USING VALUE INTEGRATED
PROJECT DELIVERY MODEL
,
1
* Student, RICS School of Built Environment, Noida, India
*2 Student, RICS School of Built Environment, Noida, India
,
ABSTRACT
Value engineering is a systematic approach, widely used to optimize the design or process or product in the
designing stage. It used to achieve the client's obligation by increasing the functionality and attain the targeted
cost in the cost planning. Value engineering effectiveness and benefits decrease along with the progress of the
project since the change in the scope of the work and design will account for more cost all along the lifecycle of
the project. Integrating the value engineering with other project management activities will promote cost
minimization, client satisfaction, and ensure early completion of the project in time. Previous research studies
suggested that value engineering can integrate with other project delivery activities, but research studies
unable to frame a model that collaborates the project management activities with the job plan of value
engineering approach. Analysing various project management activities and their synergy between each other
have studied. The project management activities and processes like a)risk analysis b)lifecycle cost analysis
c)lean construction d)facility management e)Building information modelling f)Contract administration,
collaborated, and project delivery model planned along with the RIBA plan of work. The key outcome of the
research is a value-driven project delivery model, which will succeed in dealing with the economic impact,
constraints and conflicts arise due to the COVID-19 outbreak in the Indian construction sector. Benefits
associated with the structured framework is construction project delivery that ensures early contractor
involvement, mutual risk sharing, and reviving the project with a cost overrun and delay back on track,
discussed in the research
KEYWORDS : COVID-19, Project delivery model, RIBA Plan of Work, Value Engineering
I. INTRODUCTION
Nearly 96 projects of road transport and highways, which original cost is more than 150 crore causes extend of cost overrun around
39.30 % in the year 2019-2020. (Ministry of statistics and programme Implementation , 2020) .The cost overrun and schedule
variance is mainly due to ineffective cost planning, Improper implementation, less productivity while comparing to agriculture,
manufacturing, and less collaboration between the shareholders. In addition to this, COVID -19 outbreak has further increase delay
and disrupt the completion of the project. Cost reducing approach like value engineering optimizes the design aspects of the product,
process, or services in the design stage, but its benefits decrease has the project progress. Scope of changing the design decrease in the
execution and closeout stage. Cost reconciliation should be done along the entire lifecycle of the project. To increase the value of the
project from appraisal to closing out stage, this paper highlights the Value integrated project delivery model framework, which framed
along with the RIBA Plan of work to provide a systematic understanding of the project delivery model and emphasizing value in the
critical path of work. Elaboration of the synergistic relationship between value engineering with other project management processes
like lean construction, risk management, life cycle cost analysis, facility management, bidding process, and vendor management and
VOLUME 15 ISSUE 8 2020 1855
, Journal of Seybold Report ISSN NO: 1533-9211
Ramya G
how the integration of all, would assist to overcome the economic impact, change in strategies and conflicts raised due to COVID-19
in the Indian construction sector is the key outcome of the research.
AIM AND OBJECTIVE
The main objective of the research work is to frame a value integrated project delivery model to use in the Indian
Construction Sector.
Objectives
1. To understand the systematic approach of value engineering
2. To study the relationship and integrate the value engineering with other project management tools like Lean
construction, risk assessment, vendor management, and facility management
3. To identify and Assess the Impact of COVID-19 Outbreak in the Indian Construction Industry
4. To frame the value integrated methodologies along with other project management processes to overcome the
challenges of value engineering itself and impact of COVID-19
II. LITERATURE REVIEW
Value, defined as the ratio of benefits from the course of action to cost incurred .value may be reduced , when cheaper alternative with
less lifespan chosen (RICS, 2017). Lawrence D Miles, the pioneer of value engineering was working at General electric. During world
war II, there was a shortage of strategic materials required for the war. Miles framed the functional analysis concept with the idea of
value and management and held the notion that every product has its specific purpose. This methodology became much popular and
then a learning society formed in 1959 called the society of American Value Engineers. The VE methodology got much attention after
the department of defines implemented (US) it in 1961 by staffing the full-time value engineer and introduced the clauses in the
construction contract. and the various study conducted by the Department of defence to find more opportunities for applying value
engineering. SAVE started grew within the US and then in 1996, SAVE international formed. Since the conception of Value
engineering has been used in the various project which has a complicated design, or which entail costly material. (SAVE , 2007).
value engineering has an interdisciplinary examination of each factor that provides value enhancement and cost-effectiveness. Value
Engineering can apply to the Conceptual, pre-design stage, and detailed design and procurement and construction stage. The cost
would reduce by new technology, but the functionality has not improved. Value Methodology has a job plan .It says to analyses the
product well to develop a greater number of alternatives. It has three stages: pre, value engineering, Post-study. the uniform has
developed and cost distribution by Pareto law 20/80 applied. The value engineering analysis has been controlled by functions. (Nitin
L.Rane, 2016)
―The risk assessment is done for the alternative or the innovative ideas introduced by the value engineering or value management
process. This is done in addition to general risk management for the entire project .Since the link between value and risk is not
establish ,only technical risk are taken into account .Life cycle cost analysis use to assess the alternative technical design ,to choose
the best option considering all the aspects of cost incurred along the entire cycle of the product ,process , or service .Lifecycle cycle
costing can be used for choosing the best alternative design for value engineering in evaluation process .Optimal alternative can be
attained by assessing the economic impact of innovative idea ,along the entire life cycle of the project .Building Information
Modelling and Value Engineering concern with preventing the waste by preventing overprovision of information and functionality
,which increases the cost of the project .BIM also allow visual stimulation and lifecycle cost view from completion to operation and
maintenance .BIM enables rapid evaluation of the alternative of value engineering innovative ideas .
The lean construction is a technique to remove the non-value added process from the construction activity to increase the value of the
product, service , or process .The lean construction can be applied to optimize the smaller to larger process from design to
management of the process ,which is beyond the scope of the value engineering .‖ (RICS, 2017).Lean integrated Value
Engineering for the construction industry ,an approach called LiVE ,which explains the synergy of both the method. The Lean
construction and value engineering emphasis more on the value than other value addition tools and technique .The concept of LiVE
approach is ―systematic approach to identify the client value ,identify the value flow with disruptions ,client pull functional
requirement to reduce the cost and waste and adds value to the client’s money ―the study has seven phases ―value establishment phase
‖,‖value analysis of functional requirement phase‖, ―value creativity phase ‖, ―value evaluation phase‖, ―value development phase‖,
―value verification phase‖. (E.M.A.C. Ekanayake, 2017)
Construction industry started to move from cost-based approach to value based approach. Value engineering does not address the
planning, tracking, managing the requirement .The value based approach to managing the construction project ,the client plays major
role in initiating it .Value management is evolving it’s from to include concepts from quality to other disciplines ―To induce the value
into management of construction projects ,a broader approach at the regional level is required ‖ (Forgues, 2005).The following are the
nine stage for replacing the traditional Plant Design System by value based management framework .1)Developing the specification
.The client requirement’s addressed and specification is updated according the requirement of client .2)Requirements are assessed to
clarity, meaningful and measurable .3)Functional and non-functional requirement are selected 4)Feasibility study for the intend of
client’s requirement is checked 5)requirement associate to scope is approved 6)Requirement are traceable to the design 6)Designs are
implemented 7)Requirement are inspected through commissioning 8)Quality assurance team will assess the deliverable. (Forgues,
2005)
VOLUME 15 ISSUE 8 2020 1856
OVERCOMING THE IMPACTS OF COVID-19 OUTBREAK USING VALUE INTEGRATED
PROJECT DELIVERY MODEL
,
1
* Student, RICS School of Built Environment, Noida, India
*2 Student, RICS School of Built Environment, Noida, India
,
ABSTRACT
Value engineering is a systematic approach, widely used to optimize the design or process or product in the
designing stage. It used to achieve the client's obligation by increasing the functionality and attain the targeted
cost in the cost planning. Value engineering effectiveness and benefits decrease along with the progress of the
project since the change in the scope of the work and design will account for more cost all along the lifecycle of
the project. Integrating the value engineering with other project management activities will promote cost
minimization, client satisfaction, and ensure early completion of the project in time. Previous research studies
suggested that value engineering can integrate with other project delivery activities, but research studies
unable to frame a model that collaborates the project management activities with the job plan of value
engineering approach. Analysing various project management activities and their synergy between each other
have studied. The project management activities and processes like a)risk analysis b)lifecycle cost analysis
c)lean construction d)facility management e)Building information modelling f)Contract administration,
collaborated, and project delivery model planned along with the RIBA plan of work. The key outcome of the
research is a value-driven project delivery model, which will succeed in dealing with the economic impact,
constraints and conflicts arise due to the COVID-19 outbreak in the Indian construction sector. Benefits
associated with the structured framework is construction project delivery that ensures early contractor
involvement, mutual risk sharing, and reviving the project with a cost overrun and delay back on track,
discussed in the research
KEYWORDS : COVID-19, Project delivery model, RIBA Plan of Work, Value Engineering
I. INTRODUCTION
Nearly 96 projects of road transport and highways, which original cost is more than 150 crore causes extend of cost overrun around
39.30 % in the year 2019-2020. (Ministry of statistics and programme Implementation , 2020) .The cost overrun and schedule
variance is mainly due to ineffective cost planning, Improper implementation, less productivity while comparing to agriculture,
manufacturing, and less collaboration between the shareholders. In addition to this, COVID -19 outbreak has further increase delay
and disrupt the completion of the project. Cost reducing approach like value engineering optimizes the design aspects of the product,
process, or services in the design stage, but its benefits decrease has the project progress. Scope of changing the design decrease in the
execution and closeout stage. Cost reconciliation should be done along the entire lifecycle of the project. To increase the value of the
project from appraisal to closing out stage, this paper highlights the Value integrated project delivery model framework, which framed
along with the RIBA Plan of work to provide a systematic understanding of the project delivery model and emphasizing value in the
critical path of work. Elaboration of the synergistic relationship between value engineering with other project management processes
like lean construction, risk management, life cycle cost analysis, facility management, bidding process, and vendor management and
VOLUME 15 ISSUE 8 2020 1855
, Journal of Seybold Report ISSN NO: 1533-9211
Ramya G
how the integration of all, would assist to overcome the economic impact, change in strategies and conflicts raised due to COVID-19
in the Indian construction sector is the key outcome of the research.
AIM AND OBJECTIVE
The main objective of the research work is to frame a value integrated project delivery model to use in the Indian
Construction Sector.
Objectives
1. To understand the systematic approach of value engineering
2. To study the relationship and integrate the value engineering with other project management tools like Lean
construction, risk assessment, vendor management, and facility management
3. To identify and Assess the Impact of COVID-19 Outbreak in the Indian Construction Industry
4. To frame the value integrated methodologies along with other project management processes to overcome the
challenges of value engineering itself and impact of COVID-19
II. LITERATURE REVIEW
Value, defined as the ratio of benefits from the course of action to cost incurred .value may be reduced , when cheaper alternative with
less lifespan chosen (RICS, 2017). Lawrence D Miles, the pioneer of value engineering was working at General electric. During world
war II, there was a shortage of strategic materials required for the war. Miles framed the functional analysis concept with the idea of
value and management and held the notion that every product has its specific purpose. This methodology became much popular and
then a learning society formed in 1959 called the society of American Value Engineers. The VE methodology got much attention after
the department of defines implemented (US) it in 1961 by staffing the full-time value engineer and introduced the clauses in the
construction contract. and the various study conducted by the Department of defence to find more opportunities for applying value
engineering. SAVE started grew within the US and then in 1996, SAVE international formed. Since the conception of Value
engineering has been used in the various project which has a complicated design, or which entail costly material. (SAVE , 2007).
value engineering has an interdisciplinary examination of each factor that provides value enhancement and cost-effectiveness. Value
Engineering can apply to the Conceptual, pre-design stage, and detailed design and procurement and construction stage. The cost
would reduce by new technology, but the functionality has not improved. Value Methodology has a job plan .It says to analyses the
product well to develop a greater number of alternatives. It has three stages: pre, value engineering, Post-study. the uniform has
developed and cost distribution by Pareto law 20/80 applied. The value engineering analysis has been controlled by functions. (Nitin
L.Rane, 2016)
―The risk assessment is done for the alternative or the innovative ideas introduced by the value engineering or value management
process. This is done in addition to general risk management for the entire project .Since the link between value and risk is not
establish ,only technical risk are taken into account .Life cycle cost analysis use to assess the alternative technical design ,to choose
the best option considering all the aspects of cost incurred along the entire cycle of the product ,process , or service .Lifecycle cycle
costing can be used for choosing the best alternative design for value engineering in evaluation process .Optimal alternative can be
attained by assessing the economic impact of innovative idea ,along the entire life cycle of the project .Building Information
Modelling and Value Engineering concern with preventing the waste by preventing overprovision of information and functionality
,which increases the cost of the project .BIM also allow visual stimulation and lifecycle cost view from completion to operation and
maintenance .BIM enables rapid evaluation of the alternative of value engineering innovative ideas .
The lean construction is a technique to remove the non-value added process from the construction activity to increase the value of the
product, service , or process .The lean construction can be applied to optimize the smaller to larger process from design to
management of the process ,which is beyond the scope of the value engineering .‖ (RICS, 2017).Lean integrated Value
Engineering for the construction industry ,an approach called LiVE ,which explains the synergy of both the method. The Lean
construction and value engineering emphasis more on the value than other value addition tools and technique .The concept of LiVE
approach is ―systematic approach to identify the client value ,identify the value flow with disruptions ,client pull functional
requirement to reduce the cost and waste and adds value to the client’s money ―the study has seven phases ―value establishment phase
‖,‖value analysis of functional requirement phase‖, ―value creativity phase ‖, ―value evaluation phase‖, ―value development phase‖,
―value verification phase‖. (E.M.A.C. Ekanayake, 2017)
Construction industry started to move from cost-based approach to value based approach. Value engineering does not address the
planning, tracking, managing the requirement .The value based approach to managing the construction project ,the client plays major
role in initiating it .Value management is evolving it’s from to include concepts from quality to other disciplines ―To induce the value
into management of construction projects ,a broader approach at the regional level is required ‖ (Forgues, 2005).The following are the
nine stage for replacing the traditional Plant Design System by value based management framework .1)Developing the specification
.The client requirement’s addressed and specification is updated according the requirement of client .2)Requirements are assessed to
clarity, meaningful and measurable .3)Functional and non-functional requirement are selected 4)Feasibility study for the intend of
client’s requirement is checked 5)requirement associate to scope is approved 6)Requirement are traceable to the design 6)Designs are
implemented 7)Requirement are inspected through commissioning 8)Quality assurance team will assess the deliverable. (Forgues,
2005)
VOLUME 15 ISSUE 8 2020 1856
