Value Management ab initio started in early 1940s in the US fabrication industry has progressively going popular within the building industry community internationally. It has been widely accepted as an of import tool in the direction of undertakings. The structured, systematic and multi-disciplinary attack in determination devising procedure is a niche for VM in presenting better value for money undertaking to the client investing. It would look to be deriving some impulse as an indispensable direction tool in the Malayan building sector particularly in the measure appraising pattern. Quantity surveyors increasing engagement in VM provides an chance for the profession to re-model some of its traditional services in a more positive visible radiation and develop leading-edge accomplishments and advance the profession. International pattern has associated VM to be portion of services offered in the measure appraising pattern ; particularly in UK has proven to be a natural patterned advance of QS profession. The debut of VM as early 1980 ‘s in Malaysia combined with increasing demand for building undertaking to ease state advancement is casting a positive visible radiation for measure appraising profession to take lead in developing VM as one of their niche country. Therefore, the measure appraising profession holding the chance to take lead of this service which reflect their traditional properties for supplying the best value-for-money advise to the client. This paper shall discourse on the development of VM in Malaysia and the challenges VM face services in QS house to stay in front of their rivals.

Keywords: Value direction, measure surveying, services, selling

1. Introduction

Value Management ( VM ) is a structured, systematic and analytical procedure which seeks to accomplish value for money by supplying all the necessary maps at the lowest entire cost consistent with the needed degrees of quality and public presentation ( AS/NZS 4183, 1994 ) . VM is a procedure in which map benefits of a undertaking are made expressed and appraised with a value system determined by the client ( Kelly et al. 2004 ) . It incorporates a multi-disciplinary attempt ( Kelly and Male 1993 ) directed towards analyzing the maps of undertakings for the intent of bettering, keeping public presentation and guaranting value for money ( Barton 1991 ) while cut downing or keeping overall life rhythm cost.

Additionally, it is a technique for bettering client value in undertakings, merchandises, procedures and systems which has been internationally recognized for about 40 old ages ( Kelly et al. 2004 ) . VM as it is known in

the UK and Europe every bit good as in Australia ( referred to as value technology ( VE ) in the United States and

Japan ) , was foremost introduced by Lawrence Miles in the 1940s in the US and is pulling involvement from many sectors of the building industry across the universe ( Fong and Shen 2000 ) .

The demand for VM is steadily increasing as clients seek better results from their investings in

footings of capital or other resource inputs and the return may be measured in societal, economic or commercial footings ( Kelly & A ; Male, 2004 ) . Large, regular procurance clients of the building industry are progressively prosecuting advanced attacks to the manner in which their undertakings are planned, designed

and delivered to ease their concern schemes ( Kelly et al. 2002 ) . Expectation of a first category service in footings of undertaking public presentation with enhanced value for money is going the kernel of every building undertaking. Recognizing the fact of raised demand and outlooks in undertaking bringing, VM has been adapted into the building industry in many states as a critical function in optimising undertaking cost and quality ( Kelly and Male 1993 ) .


Value Management ( VM ) was foremost introduced in Malaysia in 1986 by Prof. Roy Barton from Canberra University to Universiti Teknologi Malaysia ( UTM ) ( Che’Mat 2010 ) . The debut of VM was made to assorted public and private organisation eversince to advance on the construct. Although VM was foremost introduced into Malaysia in 1986 and despite some benefits being observed as a consequence of its application, it has non become widely practiced in the state ( Jaapar and Torrance 2005 ; Jaapar 2006 ) . Harmonizing to Jaapar et Al. ( 2006 ) , a cognition spread exists between the current development and application of VM in the Malayan building industry as compared to other developed states utilizing VM. It is posited that this is mostly due to the deficiency of cognition and regular pattern of VM, and besides to a opposition to alter by the parties involved during VM workshops ( Jaapar and Torrence 2006 ) . Some client organisations in Malaysia have been using certain facets and constructs of the VM methodological analysis in their undertaking operations, nevertheless due to some unsuccessful results, the return up of VM patterns in Malaysia has non been big ( Jaapar et al. 2009 ) .

Despite some opposition to using VM due to miss of cognition and narratives of negative past experience by clients, many building industry professionals have acknowledged that VM contributes

to the accomplishment of value for money. Based on a survey conducted by Jaapar et Al. ( 2009 ) , there is a positive hereafter for VM within the Malayan building industry as professionals from assorted sections

of the sector now appear ready to implement VM applications in their future undertakings.

However the slow up-take of VM scenario is about to alter as the industry professional has started to go cognizant on the strength of VM for building undertakings. The degree of consciousness and grasp

of VM as an indispensable toolset for supplying better value has developed sufficiently over clip to the extent that the Institute of Value Management Malaysia ( IVMM ) was established in 2000 with support and

encouragement from Government bureaus such as the Professional Services and Development Corporation ( PSDC ) . The latter bureau has initiated great attempts to advance and supply preparation classs in VM within the building industry. Private organisation such as Value Management Academy

( VMA ) every bit good catches the call in supplying extended classs in VM such as VM Professional Course, VM Familiarization and Life Cycle Costing ( Value Management Academy 2011 ) to feed increasing

demand in shuting the cognition spread in VM.

This uninterrupted enterprise has opened new chances for VM to be accepted into companies at a senior direction degree. The late issued Government round “ Value Management Guideline

Round 3/2009 ” authored by the Economic Planning Unit of the Prime Minister ‘s Department mandates that for every building undertaking valued at more than RM 50 million, a VM survey is required to be

undertaken ( Economic Planning Unit Malaysia 2009 ) , This marks the beginning of a new paradigm for

VM in the Malayan building industry, which is expected to let for greater usage and development of VM in the sector.


Value direction survey take topographic point at the front terminal of a building undertaking in doing expressed clients ‘ value system ( Kelly and Male 1993 ) . The application at the earliest phase of a building undertaking offers the most benefits ( Barton 1991 ) and greater potency for cost decrease ( Male and Kelly, 1989 ) . This is due to the fact that opportunities for doing alterations cut down as the undertaking progresses ( Refer Figure

1 ) , and the cost of doing such alterations additions ( Potts 2008 ) .

Green ( 1994 ) advocates that the structured procedure in VM is a duologue and argument among multidisciplinary design squads and determination shapers during an intense short-run conference. Ashworth

( 2004 ) claims that the chief intent of VM is to cut down unneeded costs as undertakings can be designed and constructed in many different ways and each different design attracts peculiar costs. Where two different designs satisfy the chief client demands, so the difference between the costs of these designs can be described as an unneeded cost.

However, Kelly and Male ( 1991 ) argued that the entire economic direction of undertakings involves sing both cost and value. Eliminating unneeded cost entirely does non lend to the full end

of VM which is the accomplishment of better value for money. Although many may reason that cost is the

chief concern for every building undertakings, Kelly and Male ( 1993 ) viewed cost as an nonsubjective word picture of client ‘s demands expressed in pecuniary footings. While holding value for money extend the client ‘s demands into broader significance which takes into history subjective determination doing standards of the client organisation and comprehend what is acceptable degree of cost for any given undertaking public presentation and proficient specification ( Kelly and Male 1993 ) .


Ability to act upon cost nest eggs Cost of Changes

Briefing Concept Detail Design Site Operationss


Figure 1 – Value Management Potential to Influence Cost ( Neasbey et al. 1999 )

Green ( 2007 ) cautioned that if measure surveyors are aspire to carry on VM during early phases of undertakings, they must besides endeavor to get the better of stereotyped image of measure surveyor as “ after-the-event ” cost cutters. Therefore, VM should be seen beyond the kingdom of traditional cost film editing per Se. The Royal Institution of Chartered Surveyors ( Royal Institution of Chartered Surveyor ( RICS ) ) published a study in 1992 entitled The Core Skills and Knowledge Base of the Quantity Surveyor which examined the demands for a qualified measure surveyors in regard to their instruction, preparation and go oning professional development ( Ashworth and Hogg 2007 ) . The study identified a scope of accomplishments and cognition necessary for measure surveyors to go on develop in keeping their function in building industry ( Refer Table

1 ) .

Knowledge Base

Skill Base

Construction Technology


Measurement regulations and conventions


Construction Economicss


Fiscal Management


Business Administration


Construction Law



Table 1 – Measure Surveyors Knowledge and Skill Base ( Source: RICS, 1992 )

A subset of building economic which is cost direction emphasizes on cost decrease or permutation ( Kelly and Male 1993 ) . It relates to the range of services and accomplishments offered by measure surveyor which focal point on cost nest eggs. The typical competency found in measure surveyors relies to a great extent on their analytical attack to edifices and stems straight from their ability to mensurate building plants ( Ashworth and Hogg 2007 ) where cost and monetary value can be forecast, analyzed, planned, controlled and accounted for ( Pheng and Ming 1997 ) . Their drawn-out influence in the Fieldss of catching, civil and industrial technology, building, mechanical and electrical technology services every bit good as undertaking direction provides a strong base profession to take in effectual value for money building undertakings.

Harmonizing to Kelly and Male ( 1993 ) , an economic direction of undertakings requires a combination usage of value and cost, in which the integrating between value direction and cost direction are seen to supply a possible benefits for QS profession. VM was seen to afford measure appraising profession with plentifulness of chance to develop new accomplishments and assist determine new images of the profession ( Hogg 1999 ) . Specifying their function in a positive manner and extinguish negative perceptual experience as cost cutter to undertakings through advanced service will maintain the profession at par with their rivals ( Poynter Brown, 1992 ) as cited in Hogg ( 1999 ) .

Re-modelling the profession into new advanced services takes into history single ‘s experience, traits, accomplishments and cognition of a measure surveyor.


A survey conducted by Hogg ( 1999 ) on taking UK cost adviser revealed that most common ground for low pattern of VM among QS practicians is due to low demand from the clients and their reluctant to pass extra fees for the service. Existing services provided by the measure surveyor is deemed to include steps for “ value-for-money ” in which the application of VM is unneeded. In respond to the consequence, Green and Liu ( 2007 ) argued on the findings which merely focuses on VM as cost direction services offered by QS. They further extend the paradigm of VM beyond cost itself, but instead on value for client.

A research on VM pattern by South African QS has found that 61 % of the practicians believe that VM aid in optimising value, while 41 % facilitates in accomplishment of functionality ( Bowen et al. 2010 ) . The findings indicate that the profession has started to travel in front of the cost kingdom and started to associate along the “ value ” line for building clients.

“ Value technology possesses a precise methodological analysis and has been established path record of success. It offers the building industry an of import chance to better the service it provides to

clients ” ( Green, 1990, pg.2 ) in Hogg ( 1999 ) .

“ Value direction must be taken as portion of the procedure of set uping the client ‘s concern instance to guarantee that the undertaking addresses existent demands and adds value ‘ and ‘Better ways of supplying the same public presentation, at lower cost, should be pursued – option should ever be considered – value technology should be an automatic portion of every undertaking and non an option ( RICS,1995 p29 ) in Hogg ( 1999 )

Kelly and Male ( 1991 ) as cited in Kelly and Male ( 1993 ) concluded that the integrating of cost direction and value direction is best instigated through undertaking direction services. This determination is in line with Kelly and Poynter-Brown ‘s thought for VM as natural patterned advance of measure appraising profession. Re-modelling of the profession images into something more advanced and marketable will maintaining up with increasing demand by clients for better services.

Harmonizing to Bowen et Al. ( 2009 ) , clients are more likely is the cardinal motive to use VM for undertakings instead than innate desire on portion of Quantity surveyors. This determination is supported by increasing Numberss of Government ‘s ordinance which requires building undertaking which exceeds certain sum to use Value Management as portion of cost direction step. Inevitably, the Malayan building industry through the Economic Planning Unit ( EPU ) has published VM Circular 3/2009 which make mandatary for all populace funded undertakings and programmes bing more than RM 50 million to set about VM survey ( Economic Planning Unit Malaysia 2009 ) .

Measure surveyors is regarded as in great place to act upon Value Management execution as compared to other design squad member ( Hogg 1999 ) . This statement was ab initio asserted by Kelly and Poynter-Brown ( 1990 ) which claimed that VM is identified as a natural patterned advance for QS profession due to their prima function in VM ( Ellis et al. 2005 ) combined with their cognition base built from the specialisation. Furthermore, a successful VM exercising can non be guaranteed with the absence of full engagement by cost expert or QS ( Kelly and Male, 1996 ) as cited in ( Oke and Ogunsemi 2009 ) . Olanrewaju and Khairuddin ( 2007 ) as cited in Oke ( Oke and Ogunsemi 2009 ) found that QS pattern in Nigerian industry are the most familiar with VM subject as compared to other profession. This is due to their ability to supply cost advice to client which is one of the chief concerns for building undertakings.

This stressed that, an chance for QS to spread out their services offering VM are expected to feed the demand by the industry. The issues face here in the industry now is what are the challenges for QS to offer

VM as their new niche services? The challenge has posed several cardinal inquiries which need to be


I. Are we ready to do cardinal alteration to the manner we deal with clients?

two. Does current third Q instruction offer VM courses as an elective?

three. What are the functions taken by professional organic structures in supplying preparation and instruction in VM as portion of members CPD?

four. What are the schemes to advance VM as one of the drawn-out QS services?


Selling is defined as “ the direction procedure responsible for placing, expecting and fulfilling client demands productively ” ( The Chartered Institute of Marketing 2009 ) . While McDonald ( 2007, pg 16 ) extended the definition to “ the direction map which organizes and directs all those concern activities involved in measuring and change overing client buying power into effectual demand for a specific merchandise or service, and in traveling the merchandise or service to the concluding client or user so as to accomplish the net income mark or other aims set by the company ‘ .

Pheng and Ming ( 1997 ) assert that selling is a procedure responsible for placing, expecting and fulfilling the client ‘s demands profitableness. Their research has analyzed the integrating of selling

mix for measure surveying services consist of seven Ps ( Borden, 1965 ; McCarthy, 1960 ) . The selling

mix comprises of merchandise, monetary value, publicity, topographic point, people, physical grounds and procedure are compared against services offered by QS house. The survey found that merchandise, monetary value and people are the most of import constituent of the selling mix for QS house ( Pheng and Ming 1997 ) . The merchandise refers to the services offered by QS houses to the client which includes good quality of services, within time-frame and deriving client ‘s assurance through unity and professionalism ( Pheng and Ming 1997 ) .

By concentrating on the merchandise facet out of the 7P ‘s, widening the QS services by manner of offering VM as new niche are seen to be change overing clients buying power into effectual demand ( McDonald 2007 ) . At present minute, VM can be practiced by assorted professions as it is non affiliated to any profession. However, the cognition and accomplishment based of a measure surveyor holding an chance to spread out this subject through effectual execution as a new found border for the profession.

A benchmarking survey by Male et Al. ( 1998 ) revealed that clients place certain value directors as being suited for peculiar types of undertakings, hence their pick of practician is based upon persons instead than using consultancy pattern. However, should uninterrupted attempt in preparation and exposure given to develop measure surveyor ‘s accomplishments as competent facilitators, the chance for house to obtain offers from clients are additions.

Marketing VM for QS services need to see the reverse and misunderstanding that exist among the industry professional before it can be offered. This misconception are influenced by the stigma of VM as merely another “ cost-cutting-tools ” which traditionally being labeled against QS profession. There is nil incorrect about the “ cost-cutting ” labeled to VM, it helps to extinguish unneeded cost but at the same it is more on “ cost economy ” with “ value-added ” . There are several reverses which need to be address before offering VM as portion of QS services which includes:

I. Professional fees construction ( Baba et al. 2010 )

QS services and professional fees are determined based on guideline stipulated under Registration of

Quantity Surveyors Act 1967 which divides the fee construction in conformity to specific class of edifice and types of work and contract. While the Act stipulated as such, it covers all facet of basic measure appraising pattern but non on VM. The graduated table of fees for VM services are separate from the QS BASIC fees which frequently become a reverse for QS to advance the service which incur excess cost, although the possible nest eggs is positive.

two. Empowering to go VM Facilitator

Employees need to be empowered and equipped with cognition and accomplishment in VM. VM need more than analytical accomplishments of a measure surveyor, but it combine a mixture of direction, organisational, squad

work, proficient and human relation in going a good VM facilitator. There exist some misconception

every bit good between Value Engineering ( VE ) and VM although chiefly are the same, but the executing and doctrine of VM are comparatively different. Through uninterrupted professional development ( CPD ) programme, these misconceptions can be overcome. Public and private organisations has much put an attempt in offering VM classs to the professionals and leave the pick for the practician to increase their profitableness of the service.

Should both this reverse being addressed, the authorization of QS profession are expected to switch into new niche country where QS pattern will derive its competitory advantages among others.


Empirical grounds indicates that VM at nowadays is considered as a method to help with determination devising in building undertakings. It is non recognized as specifying businesss as in a occupation constructions, although some organisations had already begin to offer VM as nucleus occupation description. However, VM requires a accomplishment set that necessitates higher degree cognitive operation at practician degree ( Kelly et Al.

2004 ) instead than easing a workshop entirely. The chance for measure appraising profession to benefits from the strength of VM in re-shaping their traditional images into more advanced services, are expected to put their place more marketable in the unfastened market.

In doing VM as an extension of QS services in Malaysia, two key issues need to be addressed in order to let for enlargement QS services and derive assurance from the client in engaging QS services.

Solving the fees construction which the client frequently plenty deemed it included in normal basic QS services fees, every bit good as authorising QS to go a facilitator in VM workshop and leads the squad.

The issues are comparatively complex particularly on the professional fees construction, nevertheless, this paper

show a conceptual snapshot on the thought of VM and QS profession while the extension of the issue discussed above are presently being research and will reported.