AQS 4291 -MUHAMMAD NADZRIN BIN ABD RAHMAN -1216779
Task 1. Discuss the feasibility of implementing Value Value Engineering Engineering Change Proposal (VECP) in construction project in alaysia !ith aim to impro"e project #eli"ery. $. %uggest an appropriate procurement procurement metho# that is suitable to accommo#ate VECP VECP implementation.
1) VECP1 is a pro"ision in the contract !hich pro"i#es incenti"es to encourage the contractor to propose inno"ati"e mo#ifications or changes #uring the course of construction to& a. 'ccomplish the project project functional reuirements at a less cost b. mpro"e project "alue or performance !ith no increase in cost c. 'ccelerate 'ccelerate project project completion completion n or#er to #etermine the feasibility of VECP to be implemente#* first !e nee# to a##ress its impact to!ar#s the construction in#ustry. ' stu#y$ has enlist the benefits of ha"ing VE application in construction in#ustry. t inclu#es the abilit y to eliminate unnecessary costs* pro#uce# better "alue in a project* lo!ere# construction cost* clients+ reuirements !ere better met* better functionality in the project outcome* more satisfie# client* impro"e# #ecision making process* as !ell as better team !orking. ,ith the VECP* VECP* it coul# stimulate the contractor+s nee# to propose their incenti"e. 's a result* it !oul# pro"i#e more comfortable !orking con#ition an# also act as another financial-making tool for the contractor !hich in turns !oul# moti"ate them more to gi"e better pro#ucti"ity rate to the project. ,ith the VECP also act as protector to client+s interest in term of sa"ing cost* this !in-!in situation !oul# #irectly or in#irectly impro"ise the #eli"ery performance of a project. ther than that* it promote effecti"e solution to time* ti me* cost* an# uality. 's 's these elements constitute the basis reuirement of a client* VECP coul# initiate a backup approach to fin# alternati"e solution to these matters by !hich is through the contractor+s in"ol"ement. The fla! in the current tra#itional approach of alaysia right no! is that it just focusing on the consultant+s "ie!* !ithout gi"en a secon# thought that the contractor coul# also come up !ith better "ie! an# can be further reinforce# through the appro"al* support* an# refinement from the ualifie# e/perts. 0ormer ,orks ,orks inister* Datuk %haiman2 once sai#3 4The contractor can propose this (suggeste# solution) to the ministry* !hich is not possible un#er present con#itions as 1 “Value “Value Engineering Ali!a"i#n $ui%eline& '#r (u)li! (r#*e!"+ ), (R.M (R.M /.R Mala,&ia 0age 4-46 2 Aini /aaar3 In"anR#ani En%u"3 N#r A5i Aa% Bari3 an% R#&ana a8i 0293 “e Ia!" #' Value Manageen" Ileen"a"i#n in Mala,&ia3 /#urnal #' Su&"aina)le De:el#en"3 V#l; 23 N#; 23 /ul, 29
AQS 4291 -MUHAMMAD NADZRIN BIN ABD RAHMAN -1216779
our contracts are too #etaile# an# rigi#*5 Therefore* the implementation of VECP can help to re#uce this gap as it aims to promote better project #eli"ery in a meantime. 6e"ertheless* inno"ation an# sustainability are also e/pecte# to be contribute# through VECP. Through inno"ation* contractor can pro"i#e ne! system or pro#uct that they fin# more effecti"e. Currently* this kin# of approach is encouraging by our local #epartment an# it is kno!n as n#ustrialise# 7uil#ing %ystem (7%). %ustainability play into role !hen the contractor kin#ly propose his !ay to cut off the maintenance cost an# this conseuently benefitting the life-cycle cost of the buil#ing. 's this !oul# bring more beneficial effects to the project #eli"ery impro"ement* it !oul# concurrently promote the #e"elopment an# sustainability of the construction in#ustry. 8o!e"er* there are some challenges obser"e# before the VECP coul# be implemente#. ne of the problems is that there is still lack of Value anagement kno!le#ge an# practice among the key players. This is follo!e# !ith the resistance to change by the in"ol"e# parties as !ell as the conflicting objecti"es of the project by #ifferent parties. t !as also #isco"ere# that many relate# parties ten#e# to ha"e negati"e min#sets to!ar#s the V process !hich resulte# in poor team !orking. 'nother contributing factor to the problem face# !as #ue to lack of input from the relate# specialists+ as !ell as poor facilitation skills #uring the V !orkshops9. Therefore* go"ernment an# other parties in"ol"e# shoul# play "ital role to gi"e out initiati"es to o"ercome these problems in or#er to make !ay for VECP implementation.
$) The Value Engineering Change Proposal (VECP) reuires a minimal contractor+s engagement in the project #esign. 'fter all* all the #esigns !ere ma#e by the employer in the first place. The VECP only there !hen the employer !ant to seek some impro"ements in his #esign from the contractor+s perspecti"e in term of cost* time an# uality. n other !or#s* the employer !ante# to offer the contractors chance to "oice out their "ie! on the project an# ho! they think !oul# increase benefit to!ar#s their client as !ell as to!ar#s themsel"es. This is not suitable for Design : 7uil# project because contractors are majorly in"ol"e in #esign at the earlier stage as they are gi"en trust from their employer to #o so. t is suitable for the project !hich the contractor has least in"ol"ement !ith the #esign. Therefore* base# on the elements state# beforehan#* it is suggeste# that VECP !oul# be best fit for Tra#itional metho# of procurement to accommo#ate its implementation as its reuire least engagement from the contractor in the #esign stage. 6ot to say the other procurement !ith least engagement of contractor in #esign stage is not suitable* but the tra#itional metho# is < =an >i >een 0213 “(?D (r##&e @lei =#n"ra!"& "# (r##"e Inn#n:a"i#n3 Ar"i!le #' e S"ar nline3 /une 21 4 Aini /aaar3 In"anR#ani En%u"3 N#r A5i Aa% Bari3 an% R#&ana a8i 0293 “e Ia!" #' Value Manageen" Ileen"a"i#n in Mala,&ia3 /#urnal #' Su&"aina)le De:el#en"3 V#l; 23 N#; 23 /ul, 29
AQS 4291 -MUHAMMAD NADZRIN BIN ABD RAHMAN -1216779
!i#ely use# in the alaysia construction in#ustry an# its popularity can bring influences to the implementation of VECP. 0urthermore* the 0DC Con#ition of Contract for Construction; !hich is use# for similar kin# of alaysia+s tra#itional metho# of procurement* is ha"ing this VECP Clause un#er clause 12.$ state#3 “The Contractor may, at any time, submit to the Engineer a written proposal which (in the Contractor’s opinion) will, if adopted, (i) accelerate completion, (ii) reduce the cost to the Employer of executing, maintaining or operating the Wors, (iii) impro!e the efficiency or !alue to the Employer of the completed Wors, or (i!) otherwise be of benefit to the Employer"“ This specifie# clause is inserte# to promote the Value Engineering approach !hich pro"i#e opportunity for the contractor to propose their alternati"e. To conclu#e* it is again suggeste# that the tra#itional metho# of procurement is the best fit to accommo#ate the VECP implementation.
=< alaysia (page 9;-9?) $) 'ini >aapar* ntanournal of %ustainable De"elopment* Vol. $* 6o. $* >uly $@@A 2) Chan Bi Been ($@1@)* “&W+ &ropose lexi Contracts to &romote nnon!ation** 'rticle of The %tar nline* >une $@1@ 9) 0DC Con#ition of Contract for Construction (1AAA) ;) https&consultations.rics.orgconsult.ti"alueengineering"ie!Compoun#Doc #oci#FG?2A$9 ?) http&acnotes.comacnotecareerfiel#s"alue-engineering-change-proposal H) ournal) of Public Procurement onitoring ffice* 6epal* >une $@12* pp.H2-G2
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