Concept of Value Engineering and Current Project Management Practice in Ethiopian Building Construction Projects

Abstract

In construction projects, when one-program costs more than planned, decision makers are forced to delay or cancel other activity. Value Engineering can play a key role in overcoming such problems by ensuring programs stay within project duration, estimated budget and saving costs. This study was conducted to assess the applicability of value engineering concept and the current management practice of Ethiopian building construction projects. In this study, knowhow of Ethiopian building construction project experts on value engineering principles were studied and the current management practice was examined. In order to gather required information, questionnaire, interview with project managers and archival review was conducted. Data was analyzed both qualitatively and quantitatively. The result of this study shows, main challenges in the project area were: delay in progress payment by owner, poor site management, weak follow up by consultant, and delay in material delivery from contractor side. Almost all experts in the project have no knowledge on the principle of value engineering and has no willingness to implement the principle. The evaluation made using value engineering principle shows the current management practice was more conventional and the industry is still facing delay of projects, cost overrun and poor quality while there are opportunities to minimize such problems.