Application of Value Management in Conception of Construction Projects in Rwanda: Professionals’ Awareness of and Barriers to Value Management in Construction Projects

Abstract

Despite the proven capability of Value Management (VM), in securing maximum output from limited resources, this management technique is not a common practice in construction industry of Rwanda. From review of related literature, the benefits of value management were underlined to be improved quality and reduced cost, whereby value is measured, considering monetary and non-monetary benefits and thus value for money is demonstrated. Additionally, most of the project evaluation techniques adopted in construction projects in the developing world have so far relied on evaluation of project performance in terms of cost, quality, delivery and progress. Since project evaluation is carried out after the work has been undertaken, the output of the analysis will just give the client an indication or a good understanding of the project performance. Such evaluations only reveal the competence or incompetence of the project participants instead of providing value for money which is addressed by VM practice which is an ex-ante analysis that takes into consideration of all value parameters. The aim of this study was to investigate the application of VM, particularly in the conception stage of construction projects in Rwanda. The specific objectives of the study were to: find out the awareness of construction industry professionals on the benefits of adopting VM in construction projects in Rwanda; find out the barriers to usage of the VM approach in the earliest stages – i.e. conception and design stages - of construction project in Rwanda; explore the possibility of making use of VM in the design of large and complex infrastructure projects in Rwanda a mandatory requirement; and develop a VM framework that may guide the conceptualization and design process of large and complex construction projects in Rwanda.The study adopted a descriptive survey research design to obtain responses from construction industry professionals in Rwanda, whereby a sample size of 170 respondents was selected, out of which 113 members were responsive. It was observed that the construction industry professionals in Rwanda have awareness of the benefits of adopting the VM technique, but that the level of awareness is rather low. Additionally, barriers to the VM adoption are: lack of awareness; high costs; wrong choice of procurement system; lack of training and education; rigid application of standards; lack of contractual provisions; lack of communication; ignorance of key aspects; and conflict of interest. It is concluded that VM approach is not used in construction industry in Rwanda, and recommended that VM practice be instituted in the construction industry, as a mandatory requirement for conception of all construction projects with a budget of twenty billion Rwanda Francs, and above.