VM Final Report

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1.0 Introduction of Value Management
Dell’ Isola (1982) defined ‘Value Management’ as “the creative organized approach whose
objective is to optimize the cost and/or performance of a facility or system.” Whereas Kelly
and Male (1991) defined it as “an oriented effort to attain optimum value in product, system
or service by providing the necessary functions at the lowest cost.”
Internationally, Value Management (VM) has been recognized as an emerging paradigm that
focuses on continuously increasing the value provided to the client and is widely accepted as
an important tool in recent management of construction projects (Ellis, Wood et al., 2005).
Value management is also critical to the success of projects as it provides a basis for
improving value for money in construction (Ashworth and Hogg, 2000). It focuses on value
rather than cost and seeks to achieve an optimal balance between time, cost and quality
(Kelly, Male et al., 2004). According to Kelly and Male (1993), Value Management in broad
terms is a service which maximizes the functional development from concept to completion,
through the comparison and audit of all decisions against a value system determined by the
client or customer. Value management is a rigorous systematic effort to improve the value
and to optimize the cost of projects, facilities and systems. It is a creative way of working
together in achieving client’s requirements.
2.0 Purpose of Value Management Study
Construction clients are becoming more “sophisticated” than they used to be. Therefore, they
require not only buildings with the highest quality that can be achieved, but also at the lowest
cost and generate the highest return on investment for the developer, or have greatest
satisfaction for the owner-occupier. There are several reasons for the application of Value
Management to a construction project, making it a case study. The primary purposes of Value
Management (VM) study are as follows:
 Establishes customer’s needs
The technique of function analysis in VM allows us to establish customer’s needs as we
can identify those needs due to the participative nature of a VM study. These needs
statements can also be prioritized, and set the direction to achieve those needs.

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 Identifies unnecessary expenditure
One of the objectives of VM is to eliminate unnecessary costs without reducing reliability
and stability. This results to savings in cost, time and energy.
 Vehicle for change
One of the most important aspects of a VM study is to generate as many ideas as possible,
as well as the creation of new and innovative methods. Change is an essential aspect in
todays and future business success. Due to the holistic and participatory approach of VM
study, the change that is going to be created in an organization will not be much disrupted,
as various levels of staff are involved in creating changes to be more competitive.
 Promotes system thinking
‘System thinking’ is defined as an approach to problem solving, by viewing problems as
parts of an overall system, rather than reacting to specific parts, outcomes or events, and
thereby potentially contributing to further development of unintended consequences. The
concept of VM is to look at things in a broader perspective rather than just the bricks and
mortar issue.
 Optimize resources
A balance distribution of resources is very important so that there will be no
overabundance on a particular element.
For this particular project, the main purpose of the application of Value Management is to
validate the spaces and optimize the cost without affecting the quality and performance of the
proposed building.

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3.0 Description of project
The selected project used for study is an administrative building which is specified to Data
Centre which are commonly run by large companies and/or government agencies. The project
is situated in Cyberjaya, Mukim Dengkil, Selangor, Darul Ehsan. These centres are fast
growing cloud solution service for private and business application. The equipment’s are
usually electrical related such as house servers, storage devices, cables and cooling systems.
This project is a five storey building with ground floor consisting electrical power sources
equipment such as battery room, meter room, earthing resistor, TNB control and transformer
room. Beginning the first level till the last level, there are spaces dedicated to data centres, air
conditioning blowers and air conditioning condensers.
4.0 Summary of problem
The designing development has been completed. The consultants i.e. Quantity Surveyors
carried out a cost estimate and the cost of the project was found out to be approximately RM
30 million. However, the client demanded demanded that the functionality and performance
of the project should not be affected in a negative manner and that the cost should be
reviewed due to restraint in budget. Therefore, Value Management needs to be applied in
order to reviews the building configuration in order to optimize the design as well as the cost.
Such concept is also known as space management.

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5.0 Functional Analysis
Functions are characteristics of an item which meets the needs or wants of the user.
According to George, D. and Palmer. A, (1997): Function definitions can be classified at four
different levels according to
 Function as a whole
 Function of the spaces within the project
 Function of the elements
 Function of components
Function analysis is a value management technique that is used to identify and describe the
functions of an item in a general way so that some of the functions can be eliminated while
some others can be combined. The purpose of this technique is basically to simplify the
design, operation, plan or schedule of the item so that it will be less expensive to make or use.
Moreover, Functional analysis is a technique for identifying and describing the functions of
an item in a general enough way that some functions can be eliminated and other functions
combined.
Furthermore, functional analysis begins with a listing of the functions of the item being
studied and provides concise and clear descriptions of all those functions. Thus, it requires
classification of the type of each function. This technique starts with a listing of the functions
of the items, while providing clear descriptions of the functions.
There are 6 steps involved in the functional approach:
1. Investigate the function of the total system
2. Investigate the function of the system components
3. Break the system down in into quantifiable parts
4. Consider what each part does
5. Place a “worth” on each part
6. Evaluate and make comparison

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5.1 Results of Functional Analysis
Component Function Type Cost
Proposed
Design Value Proposed Idea
Verb Noun Area(m2) Area (m2) Index
Ground
SwitchRoom Distribute Electricity RS 90.00 76.50 1.18 15% reduction
Chillerplant Lower Temperature RS 541.39 433.52 1.25 20% reduction
Transformerroom Adjust Voltage RS 324.60 259.68 1.25 20% reduction
Base buildingcontrol Monitor Building RS 24.00 24.00 1.00 No change
33kV consumerswitchroom Distribute Electricity RS 60.90 54.81 1.11 10% reduction
11kV consumerswitchroom Distribute Electricity RS 54.90 49.41 1.11 10% reduction
Corridor Provide Circulation S 69.80 69.80 1.00 No change
Store Store Equipment S 8.00 8.00 1.00 No change
Batteryroom House Batteries S 24.70 24.70 1.00 No change
Meterroom Monitor Distribution RS 5.80 5.80 1.00 No change
TNB 33kV room Receive Electricity RS 145.00 123.25 1.18 15% reduction
TNB control Control Electricity RS 118.70 100.90 1.18 15% reduction
Earthingresistor Discharge Electricity RS 24.30 24.30 1.00 No change
Guard post Provide Security S 6.90 6.90 1.00 No change
LiftlobbyA1 House Services S 13.50 13.50 1.00 No change
Male toilet Dispose Waste S 7.40 7.40 1.00 No change
Female toilet Dispose Waste S 3.30 3.30 1.00 No change
Guard toilet Dispose Waste S 2.80 2.80 1.00 No change
MDF 3 Distribute Network S 9.60 9.60 1.00 No change
Total Area 1,535.59 1,298.17
Note:B - Basic, RS - RequiredSecondary,S - Supporting

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Note:B - Basic, RS - RequiredSecondary,S - Supporting
Component Function Type Cost Proposed Design Value Proposed Idea
Verb Noun Area (m2) Area (m2) Index
Mezz Floor
Stagingroom Assemble Equipment S 358.30 232.90 1.54 35% reduction
AHU 5 House Services S 23.50 23.50 1.00 No change
SDF 1 Sunscribe Network S 9.60 9.60 1.00 No change
AHU 4 House Services S 40.90 40.80 1.00 No change
Airplenum House Services S 302.20 302.20 1.00 No change
Level 1
CHW pipe riser House Services RS 79.80 79.80 1.00 No change
Batteryroom House Batteries S 159.60 135.66 1.18 15% reduction
SSU B1/1 Distribute Electricity RS 242.50 206.13 1.18 15% reduction
M/V (Mediumvoltage switch
room) Distribute Electricity RS 187.20 159.12 1.18 15% reduction
Data center Store Data B 1,393.80 1,254.42 1.11 10% reduction
A/Cblower House Services RS 217.40 173.92 1.25 20% reduction
A/Ccondenser House Services RS 221.20 176.96 1.25 20% reduction
Electricriser House Services S 24.84 24.84 1.00 No change
Level 2
SSUB1/1 Distribute Electricity RS 242.50 206.13 1.18 15% reduction
Total Area 4,280.34 3,741.74

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Level 2 (Cont'd)
M/V Distribute Electricity RS 187.20 159.12 1.18 15% reduction
Level 3
M/V (Mediumvoltage switchroom) Distribute Electricity RS 187.20 159.12 1.18 15% reduction
Total Area 5,567.98 4,922.71
Note:B - Basic, RS - RequiredSecondary,S – Supporting

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Level 3A
A/Ccondenser House Services S 221.20 188.02 1.18 15% reduction
Level 4
M/V (Mediumvoltage switchroom) Distribute Electricity RS 187.20 159.12 1.18 15% reduction
Roof
Exhaustfan House Services S 82.00 82.00 1.00 No change
Liftroom House Services S 20.06 20.06 1.00 No change
Fan room House Services S 17.34 17.34 1.00 No change
Roof Provide Shelter S 2,526.60 2,526.60 1.00 No change
Total Area 5,888.64 5,505.67
NET TOTAL AREA 17,272.55 15,468.28
Total Saving Area (M2) 1,804.28
Note:B - Basic, RS - RequiredSecondary,S – Supporting

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6.0 Technical Data Supporting Alternatives
Introduction
The main aims of value management are to optimize cost and validate space. Therefore,
several components of the data center are analyzed to achieve the aims. Design alternatives
which leads to cost reductions are proposed in this report. However, these alternatives
suggested do not affect the performance and quality of the data center. in line with achieving
the goals of optimizing cost and improving value, there are several stages needed to be
undergone.
The stages that needs to be undergone by the value management team are:
1. Information Stage
In this stage, the client and design team will present the design and scope of project to the
VM team.
2. Functional Analysis
In this stage, functions of the systems and components are analyzed and evaluated
3. Creativity Stage
In this stage, the team will generate and propose ideas as alternatives to the problems
identified
4. Evaluation Stage
In this stage, ideas and alternatives proposed by the VM team is assessed and filtered.
5. Development Stage
In this stage, accepted proposals from the creativity stage are studied for their cost and
feasibility.
6. Presentation and Recommendation of Action Plan
In this stage, the VM team are to present the ideas which suits the aim of the project and to
recommend and action plan to achieve these aims.

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6.1 Data Center
In this modern technological era, a data center is vital to ensure an organization’s continuity
of their daily operations. Generally, a data center is a facility used to store computer systems
and its associated components. Some of these associated components includes
telecommunications and storages systems. A data center stores, manages and distributes its
data. Therefore, the security, reliability of data centers and information stored remains a top
priority for the organizations.
Designs for data centers are unique and different from other buildings. Commonly, data
centers are classified into two main categories; Internet Data Center and Internal Data Center.
Internet Data Centers typically only supports a small number of applications which are
normally browser-based. While, Internal Data Centers are used by a limited number of users
but supports more applications. These applications ranges from customized applications to
common applications
Architecturally speaking, not all data centers are designed in the same way. The designs vary
to suit different requirements. For big organizations such as Google and Facebook, data
centers are usually in a whole building entirely. While for small organizations, the data center
may be a small room in the building.
Figure 1: Facebook Data Center, Pineville, Oregon

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Figure 2 : Google Data Center, Mayes County, Oklahoma
Nevertheless, an effective data center is accomplished with a balance in the investment of the
facility and equipment housed. The elements of an effective data center are identified as
below:
1. Facility
This refers to the usable space available to store the IT equipment needed. Supplying
information on 24-hour basis daily means data centers consumes a lot of energy to operate.
Therefore, it is important that these places remain at optimum conditions for the equipment to
avoid malfunctions.
2. Support Infrastructure
These are components which are needed to sustain the data centers to ensure it operates at its
best. The supportive infrastructure includes:
a. Environmental Control
These components are needed to ensure the conditions in the data center remains
optimum for operations. These includes air-conditioners systems, heating,
ventilation and exhaust systems.

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b. Uninterrupted Power Source
The main need of a data center is power. Therefore, it is important for all data
centers to have a stable power supply. These includes battery banks, generators
and redundant power sources.
c. Security Systems
Data centers are always vulnerable to attacks, either virtually or physically.
However, a data center can always be protected virtually with firewalls.
Physically, a data center is prone to attacks and vandalism. Hence, biometrics and
video surveillance system is needed to maintain it.
3. IT Equipment
Equipment that are needed for the operation of the data center and to store the organization’s
data. The equipment consists of data storage hardwares, servers, data cables, racks and a
variety of virtual security such as firewalls.
4. Operations Personnel
Although this modern era relies heavily on machines and computers, no technology will
surpass that of human. The data center also requires personnel to monitor operations and
maintain IT and infrastructural equipment 24-hours.
In the recent years, data centers have transformed remarkably. Most data centers now are
embracing newly found technologies such as virtualization to optimize utilization and
increase flexibility. A number of organizations are moving towards cloud-based services and
infrastructure. A heavy emphasis has been put unto reducing the energy consumptions of data
center. Data centers are now using low energy consuming equipment. Major organizations
such as Google and Facebook are building “Green Data Centers” as an initiative to ensure
data centers are environmentally friendly.

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6.2 Components to Analyzed
The components needed to be analyzed in the Value Management studies have been
identified. The components identified are:
1. TNB Room
2. Transformer Room
3. Switch Room
4. Chiller Plant
5. Data Center Room
6. Battery Room
7. Staging Room
8. Air Conditioning Blower
9. Air Conditioning Condenser
10. Synchronization Supply Units Room (SSU)
11. Medium Voltage ROOM (MV)
6.3 Transformer Room
A transformer room is where a transformer is placed, it is usually unattended. A transformer
is an electrical device that transfers energy between two or more circuits through
electromagnetic induction. Usually, transformers are used to increase or decrease voltage of
alternate current.
In this value management study, the transformer room is identified as a required secondary
function. It is needed to adjust and maintain the voltage. The size of the transformer room in
this data center is 324.60 m2. This area is meant to store the transformer unit and circulation
space.
The circulation space needed in the transformer room is only for maintenance when needed.
It is not meant fro permanent human presence. Therefore, the team has identified this as a
potential component to save on. The plan shows that the circulation area is too wide for
maintenance use, the circulation space can be reduced. It is also identified that the spaces in
between the transformer units can be reduced without compromising their performance. The
area of the transformer room was reduced by 20 %.

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The diagrams below show the sketching of the original floor plan before value management
study and the floor plan after value management has been conducted. The sketches
demonstrate the initial arrangements of the transformer units and the circulation spaces in the
area and the potential savings.
Figure 3: Original Floor Plan
Figure 4: Revised Floor Plan

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6.4 Staging Room
Staging rooms are a common feature in every data centers. It functions as a space for
assembling and disassembling electrical equipment for maintenance or replacement. Usually,
electrical equipment is delivered to the staging room for unpacking and assembling and vice
versa. The staging room also consist of offices or workshops for the technicians.
It was identified in this study that the total area of the staging room is 358.30 m2. It is also
determined as a supporting function. Hence, making it an undesired feature for the building to
operate. Through the study, it was brought to attention that only 3 technicians are placed in
the staging room, but the space dedicated to be used as office is 100 m2. This area is
considered unnecessary for only 3 technicians. Hence the team decided to decrease the space
to 50 m2.
Furthermore, the space used for assembling the equipment is also reduced. This is done
because the room is only needed when there are major assembling required.
The sketches below illustrate the original plan and the proposed changes for the staging room.

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6.5 Battery Room
Data centers are highly dependent upon power supply to function. Therefore, a stable and
uninterruptible power supply system is needed. A battery room is always present in data
centers as a back-up or alternate power source in case disruption in power supply occurs. A
battery room consists of small wet cell batteries which are arranged on shelves as shown in
the picture below.

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Figure 7: Typical Battery Room
Through the study conducted, the battery room is categorized as a supporting function.
However, it is no necessarily needed for the data center to operate. The area of the battery
room in the data center is measured to be 159.60 m2. The VM team found that the vertical
space is not being utilized to its maximum potential in this data center. Initially, the batteries
are to be place on 4 numbers of 2-level shelves. However, by increasing the number of
shelves to 4-level shelves, the area to place the shelves can be decreased significantly.
Through this alternative, the area of the battery room was reduced by 15%. The sketches
below demonstrate the initial plan and the revised plan of the battery room.

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Figure 8: Typical 2-Level Shelves for Battery Room

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Figure 10: Typical 4-Level Shelves for Battery Room

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6.6 Data Center Room
The data room is the heart of every data center building. A data room is where all storages
and telecommunication systems are installed. The equipment in this room is always put on
shelf cabinets and arranged in rows. Such is to allow accessibility to the front and back part
of each cabinets. The picture below shows a typical data room.
Figure 12 : Typical Data Room
From the study, the VM team has identified the data room as a primary function, because it is
the main reason for the existence of the center. It is measured that the present data room is
1,393.80 m2. It is also found by the VM team that the arrangement of the shelf cabinets
shows unnecessary excess space in between. Although the spaces are needed for technicians
to access the front and back of the cabinets, the width or circulation space in between is
considered to be too much. Through thorough discussion and analysis, the VM team has
decided to decrease the spaces in between the shelf cabinets. This resulted in a decrease of 10%
of the total area of the data room

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6.7 Air conditioning blower & condenser room
This room consists of air conditioning units, which are used to lower and monitor the
temperature of the data center. Air condensing units provide cool air while the blower aids in
the circulation of the cold air throughout. This room can be categorized as required
secondary function as it supports the basic function and it is needed for the building to work.
The original area of the air conditioning blower and condenser room is 217.40 m2 and 221.20
m2 respectively. Since the area of the data center has been decreased, the number of air
conditioning units is reviewed. The cooling capacity can be reduced due to less floor space
and thus, the number of air conditioning is reduced to avoid excess cooling. The decrease in
number of air conditioning units can provide a new design to reduce space. Also, the spacing
between the air conditioning units is reduced to enhance the space. The new area suggested
for the air conditioning blower and condenser room is 173.90 m2 and 176.96 m2,
representing a space reduction of 20% for both types of rooms.
The picture below shows a typical air conditioning condenser.
Figure 15: Typical air conditioning condenser

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The sketches below shows the proposed changes made during the study.
Figure 16: Before study
Figure 17: After study

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6.8 Chiller plant
Chiller plants are considerably large air conditioning systems in a building. Chiller plants
lower the temperature in desired parts of the building by removing the hot air and supplying a
constant stream of cool air. These chiller plants are essential in data centers. Data centers
contain thousands of servers that operate 24 hours a day, 7 days a week, storing, managing
and disseminating data. Like any equipment that runs on electricity, the servers will overheat
without a cooling system to lower the temperature. A large data center would require a
powerful chiller plant in order to operate.
Chiller plants are required secondary functions in data centers, to lower the temperature in
the data center rooms. Like data centers rooms, chiller plants are normally unattended and
only require maintenance after a constant amount of time (i.e. monthly or fortnightly). The
chiller plant can be redesigned to occupy a smaller space. Routine maintenance can still be
done as long as the corridors are not too narrow. The overall area can be decreased from
541.90m2 to 433.50m2, a reduction of 20%.
Figure 18: A typical chiller plant

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Figure 19: Chiller plant before VM study
Figure 20: Chiller plant after VM study

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6.9 Switch room
This is the room where the electricity distributed within the building. The electricity is
monitored and controlled through switch panels. This monitoring of power supply means that
the switch room serves a required secondary function. If there are issues with the electrical
grid within the data center, they can be identified quickly in the switch room. Since the
switch panels are stacked on one another, dozens of switch panels can be placed on one wall.
The large amount of space (50%) in the room can be omitted, from 90m2 to 45m2.
Figure 21: Switch panels
Figure 22: Switch room before VM study
Switch panels

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Figure 23: Switch room after VM study
Switch panels
Circulation space omitted

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6.10 Synchronization Supply Units
Computers in data centers communicate with other digital equipment around the world. This
communication is only possible if the data centers have high-speed network connections.
However, if there is no accurate synchronization between the networks and the computers,
the communications will not run smoothly. SSU or Synchronization Supply Units are used to
ensure consistent synchronization distribution in modern telecommunication networks. Input
network signals are synchronized and distributed to local equipment as high quality output
signals. The data center being studied has two SSU rooms on each floor to ensure the smooth
distribution and synchronization of the network connections.
The arrangement of the supply units within the room is important. By aligning the units
parallel to the length the room, there is a large amount of circulation space left, which can be
omitted. The original area of the SSU rooms (242.50m2 and 248.70m2) can be reduced by 20%
(206.10m2 and 211.40m2).
Figure 24: Synchronization Supply Units

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Figure 25: SSU rooms before VM study
Figure 26: SSU rooms after VM study

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6.11 33kV TNB room
Data centers run on electricity, therefore it is essential to have multiple power supplies to
avoid severed connection. 33kV TNB room is a room that receives high voltage electricity
from the TNB substation outside the data center facility. The electricity is decreased to 33kV
and distributed to the consumer switch rooms. This room serves a required secondary
function.
If there is only one transformer inside the 33kv TNB room, the circulation space around the
transformer can be reduced without affecting the functioning of the transformer. More than
20% of space reduction can be achieved, from 145m2, to 116m2.
Figure 27: Transformer in the 33kV TNB room

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Figure 28: 33kV TNB room before VM study
Figure 29: 33kV TNB room after VM study

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6.12 Medium Voltage room
The medium voltage switch room receives electricity from the TNB 33kV room and further
steps down and distributes the electricity to the parts of the data center. Therefore, like the
TNB 33kV room, this room has a required secondary function. There is a transformer in the
room, and the circulation area of the room can be decreased. The amount of reduction is 20%,
from 187.20m2 to 149,80m2.
Figure 30: MV room before VM study

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Figure 31: MV room after VM study

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7.0 COST ANALYSIS
The following table shows that the building element costs before and after the functional
analysis application for the proposed ‘Data Center’ project located in Cyberjaya, Mukim
Dengkil, Selangor, Darul Ehsan

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After the Functional Analysis, the new cost of the project obtained is RM 26,450,758.80.
Thus, showing that a total saving of RM 3,085,301.70 is achieved.
8.0 Recommended Action Plan
Action plan is the strategy that needed to achieve the outcomes of Value Study and to equip
the ongoing management framework for project progression. Basically, Action Plan is the
final stage in the Value Management workshop. It indicates the agreements of perspectives of
Value Study workshop participants and expresses ideology that illustrates wide potential for
value improvement.
Meanwhile, the Action Plan and outcomes of workshop are made of highlights of
presentation to client. The Action Plan signifies the dates of target for every item and
appoints people to take accountability for the pursuit of those items and any reporting. The
ultimate goal of Value Management study is rely on the effort in which the Action Plan is
carried out. Therefore, the Action Plan Co-ordinators are appointed in the end of workshop in
order to ensure the effort is applied appropriately. The Action Plan shall comply of the
following:
1. Listings of activity to be assured
2. Identification of people to be involved for each part of activity
3. Indication of time frame for further assessment and resolution
4. Finalisation of date
In this study, the Action Plan is relied on the optimisation of space. The persons that in
charge of the activities are mainly structural and mechanical & electrical engineers as
changes are mainly involved the building structures and the electrical equipment. For further
illustration of Action Plan, a table have been established in the following page.

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Item Component Recommendations Tasks Responsibility Timeframe
1. Switch room  Reduce the circulation
space
 Redesign switch room
 Prepare cost plan
Structural
Engineer, M&E
Engineer, Quantity
Surveyor
Detailed design stage
2. Chiller plant  Reduce the circulation
space
 Redesign chiller plant
3. Transformer room  Reduce the width of
corridor and spaces
between transformers
 Redesign transformer
room
4. TNB room  Reduce the circulation
space
 Redesign TNB room
5. Staging room  Reduce office area and
staging area
 Redesign staging
room
6. Data centre room  Reduce width of
corridor
 Redesign data centre
room

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Item Component Recommendations Tasks Responsibility Timeframe
7. Battery room  Increase number of
shelf per row
 Eliminate extra shelf
 Redesign battery
room
Structural
Engineer, M&E
Engineer, Quantity
Surveyor
Detailed design stage
8. Air conditioning blower  Eliminate extra units
 Reduce width of
corridor
 Redesign air
conditioning blower
room
9. Air conditioning
condenser
 Eliminate extra units
 Reduce width of
corridor
 Redesign air
conditioning
condenser room
10. SSU room  Reduce circulation
space
 Redesign SSU room
11. MV room  Reduce circulation
space
 Redesign MV room
1. Implement the recommended changes
2. Monitor the progress of implementation
3. Review and audit the implementation
1. Project Manager
2. VM Facilitator
3. Client
Construction & Post
construction stage

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10.0 Conclusion and Recommendation
In general, Value Management (VM) can be seen as a structured team based approach to
identify functional requirements of projects to achieve optimum function for minimum cost.
It can be applied to any type of project regardless of size or timeframe and at all stages
throughout the life cycle of the project from inception to completion. However, it is
recommended to carry out VM study since the early stage of the project, especially before
construction, as it is at this stage that the potential savings are high.
The concept of Value Management is becoming more relevant to the construction industry
due to its nature of achieving optimum balance between managing costs without
compromising on quality. A 2009 study on the impact of VM implementation in Malaysia
revealed that construction projects that applied the concept had recorded savings on the initial
project cost by between 10% to 30% (www.utm.my).
Particularly in this VM study, an elimination of unnecessary spaces has been adopted as one
of the effective methods to reduce the cost. The spaces were eliminated without affecting the
performance of the project. A total area of 1,804.27 m2 was reduced resulting a saving of
10.4% (RM 3,085,301.70) is achieved for the proposed project. Upon implementing the
recommended changes, not only will provide savings in term of initial cost but as well as the
life cycle costing especially the operating and maintenance costs. With reduced floor space,
amount of cooling, ventilation and electricity required will be lower which in return will offer
long term savings.
Despite all the savings that can be achieved through VM studies, the industry, including the
private sector had not been quick to adopt the concept comprehensively and institutionalise it
within the system. The Government though has taken the initiative to encourage the
application of Value Management by introducing a mandatory requirement of Value
Management analysis for all public projects costing over RM 50mil under the 10th Malaysia
Plan (10MP).
However, it is strongly recommended that the Value Management analysis should be
implemented for all projects. Therefore further actions must be taken to promote and
encourage the industry, especially the private sector, to implement Value Management in all
their projects. One of the suggestions includes a need to increase public awareness of VM

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concept to the relevant organisations. For example, professional institutions as well as
Government bodies could introduce VM by organising trainings, workshops or seminars to
the public. Furthermore, by acknowledging VM as one of the tools of competitive advantage
will motivate the construction companies to adopt VM so as to make their organisations stand
out among the others.
In conclusion, implementation of Value Management in construction industry can greatly
benefit the clients in term of achieving optimum needs, objectives, desires and requirements
of the construction projects at minimum cost.

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APPENDIX
Task Allocation
Introduction – Primary purpose of study
Presentation Slides
Evelyn Ho
Executive summary of project under study
Presentation Slides
Sri Harvindren Ganesh
Result of Functional Analysis
Presentation Slides
Jeffery Tan
Technical data supporting alternatives
Presentation Slides
Quinnie Tan
Rya Ghunowa
Cost Analysis
Compiling of Assignment
Presentation Slides
Noora Azwer
Action Plan
Presentation Slides
Amy Wong
Cost Analysis
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