KUALA LUMPUR, March 13 (Bernama) — A 2009 study on the impact of Value Management implementation in Malaysia revealed that construction projects in the country that applied the concept had recorded savings on the initial project cost by between 10 per cent and 30 per percent, said Datuk Seri Najib Tun Razak.
The Prime Minister said, however, the industry, including the private sector had not been as quick to adopt the concept comprehensively and institutionalise it within the system.
“This must change so that the nation’s physical development is in line with the Government’s transformation plans,” he said in his 1Malaysia blog Sunday.
Najib said in many countries, the application of value management had become integral to the construction industry, adding that in the simplest terms, value management was a process to seek maximum returns on a project from well-managed costs.
“The returns in this case are not just financial, but also in terms of the function or benefit of the project to the end-users, as well as the quality and sustainability of the project. Value management seeks to find the optimal balance of these factors,” he said.
Najib cited construction of paved roads as an example and that by applying value management analysis, it can determine that a road in a low-traffic area does not require as much reinforcement as one built in a high-traffic zone.
“Hence the cost of a kilometre of paved road in the low-traffic area can be reduced. In other words, one size does not fit all. One other area where this can be applied as soon as possible is in the building of schools,” he said.
Najib said that in his recent trip to Turkey, he visited the construction of one of the largest infrastructure development projects in the world – the Marmaray Rail Tube Tunnel and Commuter Rail Mass Transit System.
He said that in undertaking this complex project, the value management process had been crucial to ensure every amount of funding produced maximum long-term value for the country and its people.
“In fact, I hope that our Public Land Transport Commission will study the value management implementation of this project and adopt it for our domestic projects,” he said.
He said that he had already asserted last year that all projects for new public buildings slated under the 10th Malaysia Plan must be preceded by a comprehensive value management exercise.
Najib said that this must be done even before the tender process – specifically as early as the planning stages – so that the Government, together with the private sector, spent prudently and that the project returns the maximum possible value.
“Soon, the implementation of value management processes for all construction-related projects will be a standard practice in all ministries, thus ensuring that every Ringgit from the Rakyat will be well spent,” he said.
Source : Bernama