A Review on the Role of Risk Management (RM) and Value Engineering (VE) Tools for Project Successful Delivery

Abstract

Both in developed and in developing countries, the construction industry is regarded as an economic investment activity without forgetting its significant relationship with national economic development due to its great contributions to the national gross domestic product (GDP) of the country. Concerning construction processes, both risk management (RM) and value engineering (VE) techniques have commonalities from the beginning up to the completion of the project due to enhancing the project value/quality, meeting the project deadline, and reducing overall project cost. VE includes resolving the uncertainty of project objectives and ensuring that the project is delivered in a value for money way. The key point of RM is to solve the uncertainty of the project itself and its results to ensure that the specifications are achieved within the prescribed time, cost, and quality constraints. This review work is comparatively and collectively focused on assessing the role of RM and VE tools for project successful delivery. It studies the points of difference and common features of the two aspects in terms of construction project delivery. So, this study concluded that in construction RM tool cannot be the chief aim of the all parties involved in the project execution because sometimes it produces itself negative results and reduces project management success. Therefore, RM needs a strong combination with VE due to the dependence of the target in identifying and assessing risks by considering the highest performance and lowest cost. The integration of RM and VE combination in a single study would avoid duplication of work and deliver better value for money thereby leading to better project outcomes.