Utilizing crave framework for a better value engineering and risk management intergradation in construction projects
DOI:
https://doi.org/10.19255/JMPM029010Keywords:
CRAVE framework,, Value Engineering, Risk managementAbstract
The construction industry in UAE, companies tend to take informal risk without calculated measures. Companies need to control risk in order to create value and maintain the quality of their services. To accomplish this, risk management team and value engineering team should be working as one team. Through Value Engineering and Risk Management, companies will be succeeded in delivering their project with low risk at a high value. In order to achieve better value for money and quality deliverables, the industry will require an effective management for the risk integrated in their project. Therefore, the integration of value engineering and risk management is essential to maximize the project value and will enrich the consequences of both processes. Furthermore, the integration of both procedures will improve the efficiency of the workshop activity and hereby it will provide a powerful tool management within the construction industry. There were different terminologies for the integration of value engineering and risk management that is described in this research. The CRAVE terminology which is a combination of Cost Risk Assessment and Value Engineering is one of the processes that integrate value engineering with risk management. Existing research revealed how the CRAVE process was used successfully in the infrastructure and transportation related projects. However, it is evident from the literature that the CRAVE process was not implemented for the construction of different types of buildings. This research will investigate the possibility of implementing the CRAVE process on a residential type building. The construction of high class villas will be used as a case study and will explore the effect of this integration on the value of the project. The author interviewed several engineers, who are the decision makers in the project to study the effect of CRAVE processes on the project and how it should be implemented. The research concluded the framework of the integration of VE and RM that can be used in the construction projects and showed the following benefits:
References
Abd Karim, S. B., Berawi, M. A., Yahya, I. A., Abdul- Rahman, H., & Mohamed, O. (2007). The Integration of Value and Risk Management in Infrastructure Projects: Learning From Others. Proceeding Quantity Surveying International Conference, Kuala Lumpur (pp. 4-5). https:// www.academia.edu/download/102926/Full_Paper-The_ Integration_of_Value___Risk_Mgmt.pdf
Abdelgawad, M., & Fayek, A. R. (2010). Risk management in the construction industry using combined fuzzy FMEA and fuzzy AHP. Journal of Construction Engineering and management, 136(9), 1028-1036. https://doi.org/10.1061/ (ASCE)CO.1943-7862.0000210
Al-Yousefi, A. S. (2008). The synergy between value engineering and sustainable construction. CTBUH 8th World Congress, Dubai, March (pp. 3-5).
Alaqad, M., Gidado, K., & Piroozfar, P. (2015). Integrating value, risk and environmental management at the strategic definition stage. Management, 145-154. https://www. academia.edu/download/49369193/Integrating_value_ risk_and_environmental20161005-26366-1ocvwpt.pdf
Anderson, T., & Shattuck, J. (2012). Design-based research: A decade of progress in education research? Educational researcher, 41(1), 16-25. https://doi. org/10.3102%2F0013189X11428813
Berawi, M. A. (2010). Managing Change and Uncertainty Using Value Engineering. Value world, 33(2), 2-3.
Berends, T., & Long, B. (2007). Combining a Value Engineering (VE) Study with a Cost Risk Assessment (CRA). AASHTO Value Engineering Conference Seattle, Washington.
Caltrans. (2009). Project Development Procedures Manual. California.
Cameron, R. (2009). A sequential mixed model research design: Design, analytical and display issues. International journal of multiple research approaches, 3(2), 140-152. https://doi.org/10.5172/mra.3.2.140
Cretu, O., Stewart, R. B., & Berends, T. (2011). Risk management for design and construction. John Wiley & Sons.
Curran, K. M. (2006). Value-based risk management (VBRM). Cost Engineering, 48(2), 15-22. http://www. uncertain.com/VBRM%20Article%20-%20small.pdf
Dallas, M. F. (2008). Maximising Project Value Through Integrated Risk and Value Management. In Value and Risk Management - A guide to best practice. London: Blackwell.
Dikun, S., & Rahman, H. Z. (2010). The Integration of Value Engineering and Risk Management in Strategic Alliance Public Private Partnership. Value world, 33(2), 44-53.
Fellows, R., & Liu, A. M. (2012). Managing organizational interfaces in engineering construction projects: addressing fragmentation and boundary issues across multiple interfaces. Construction management and economics, 30(8), 653-671. https://doi.org/10.1080/01446193.2012.6 68199
Fraenkel, J. R., & Wallen, N. E. (1990). How to design and evaluate research in education. New York: McGraw-Hill. http://www.johnlpryor.com/JP_Digital_Portfolio/EDU_7901_ files/EDU%207901%20Data%20Definitions.pdf
Gioia, D. A., Corley, K. G., & Hamilton, A. L. (2013). Seeking qualitative rigor in inductive research: Notes on the Gioia methodology. Organizational research methods, 16(1), 15- 31. https://doi.org/10.1177%2F1094428112452151
Green, S. D. (1999). Towards an integrated script for risk and value management: insights from the dramaturgical metaphor. A Focus on Research and Practice in Construction. https://centaur.reading.ac.uk/23025/
Hamid, S. H. A., Takim, R., & Nawawi, A. H. (2011). An integrated value management (IVM) for construction projects in Malaysia. 2011 IEEE Symposium on Business, Engineering and Industrial Applications (ISBEIA) (pp. 421- 425). IEEE. https://doi.org/10.1109/ISBEIA.2011.6088850
Hiley, A., & Paliokostas, P. (2001). Value management and risk management: an examination of the potential for their integration and acceptance as a combined management tool in the UK construction industry. Proceedings of the RICS Construction and Building Research Conference (COBRA 2001), Glasgow Caledonian University. 1 (pp. 27-36). Citeseer. http://citeseerx.ist.psu.edu/viewdoc/ download?doi=10.1.1.116.4705&rep=rep1&type=pdf
Hwang, B.-G., & Ng, W. J. (2013). Project management knowledge and skills for green construction: Overcoming challenges. International journal of project management, 31(2), 272-284. https://doi.org/10.1016/j. ijproman.2012.05.004
Hwang, B.-G., Zhao, X., & Toh, L. P. (2014). Risk management in small construction projects in Singapore: Status, barriers and impact. International journal of project management, 32(1), 116-124. https://doi.org/10.1016/j. ijproman.2013.01.007
Isaac, I. (1995). Training in risk management. International Journal of Project Management, 13(4), 225-229. https:// doi.org/10.1016/0263-7863(94)00023-6
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Khalid, B., & Smith, K. (2012). Delivery. In Washigton State Public works. Washington: Craig Kelman.
Khatib, M. M. E. (2015). Integrating project risk management and value engineering in tendering processes. International Journal of Engineering Research, 4(8), 442-445. http://citeseerx.ist.psu.edu/viewdoc/ download?doi=10.1.1.736.6409&rep=rep1&type=pdf
Kirk, D. Q. (1995). The integration of value management and risk management. Save Proceedings (pp. 62-70). Society of American Value Engineers.
Kuo, Y.-C., & Lu, S.-T. (2013). Using fuzzy multiple criteria decision making approach to enhance risk assessment for metropolitan construction projects. International Journal of Project Management, 31(4), 602-614. https://doi. org/10.1016/j.ijproman.2012.10.003
Leviäkangas, P., & Hietajärvi, A.-M. (2010). Weather information for transport: The value shift. Value world, 33(2), 4-13. https://www.value-eng.org/resource/ collection/5DD8EF25-5900-4B3B-8D15-628F8AA8E0D1/ Value_World_Summer_2010.pdf#page=4
Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design (2nd ed.). New York: Taylor & Francis. https://doi.org/10.4324/9781315750606
McShane, M. K., Nair, A., & Rustambekov, E. (2011). Does enterprise risk management increase firm value? Journal of Accounting, Auditing & Finance, 26(4), 641-658. https:// doi.org/10.1177%2F0148558X11409160
Mootanah, D. P. (1998). Developing an integrated risk and value management framework for construction project management. Proceedings of the 14th Annual Conference of the Association of Research in Construction Management (ARCOM), Reading University, Reading. 2 (pp. 448-457). https://www.arcom.ac.uk/-docs/proceedings/ar1998-448- 457_Mootanah.pdf
Nieto-Morote, A., & Ruz-Vila, F. (2011). A fuzzy approach to construction project risk assessment. International Journal of Project Management, 29(2), 220-231. https:// doi.org/10.1016/j.ijproman.2010.02.002
Ranesh, A., Zillante, G., & Chileshe, N. (2012). Towards the integration of risk and value management. Australasian Journal of Construction Economics and Building-Conference Series. 1(2) (pp. 43-51). https://doi. org/10.5130/ajceb-cs.v1i2.3165
Rao, M., & Ranade, H. V. (2014). Achieving ‘best value’for the community by deployment of risk based cost estimation using Monte-Carlo Simulation to rate-payer-funded capital intensive road projects. Organisational Project Management, 1(1), 74-95. https://doi.org/10.5130/opm. v1i1.4112
Rory, B. (1996). Project Management Planing And Control. In: John Wiley & Sons Inc.
Sears, S. K., Sears, G. A., & Clough, R. H. (2015). Construction Project Management - A practical guide to field construction management (6th ed.). John Wiley & Sons.
Siraj, N. B., & Fayek, A. R. (2019). Risk identification and common risks in construction: Literature review and content analysis. Journal of Construction Engineering and Management, 145(9), 03119004. https://doi.org/10.1061/ (ASCE)CO.1943-7862.0001685
Smith, K., PE, & CVS. (2011). Cost Risk Assessment and Value Engineering (CRAVE). Value Management Strategies. http://www.kovup.com/bbs/filedownload. php?filename=14596867681Cost+Risk+Assessment+and+VE. pdf&wh=bbs
Smith, K. L. (2012). Olympia Crave. CSVA.
Sondergaard. (2011). Risk-Adjusted Value Management. Gartner.
Taher, K. A. (2010). Value Engineering as an Effective Tool for Improving the Performance of Students. SL Save International Conference Proceedings (pp. 391-399). https://faculty.kfupm.edu.sa/ee/sbaiyat/events/sec2002/ vol1/P391.pdf Tang, O., & Musa, S. N. (2011). Identifying risk issues and research advancements in supply chain risk management. International journal of production economics, 133(1), 25- 34. https://doi.org/10.1016/j.ijpe.2010.06.013
Tang, P., & Bittner, R. B. (2014). Use of value engineering to develop creative design solutions for marine construction projects. Practice Periodical on Structural Design and Construction, 19(1), 129-136. https://doi.org/10.1061/ (ASCE)SC.1943-5576.0000184
Taroun, A. (2014). Towards a better modelling and assessment of construction risk: Insights from a literature review. International journal of Project management, 32(1), 101-115. https://doi.org/10.1016/j.ijproman.2013.03.004
Taylan, O., Bafail, A. O., Abdulaal, R. M., & Kabli, M. R. (2014). Construction projects selection and risk assessment by fuzzy AHP and fuzzy TOPSIS methodologies. Applied Soft Computing, 17, 105-116. https://doi.org/10.1016/j. asoc.2014.01.003
Tohidi, H. (2011). Review the benefits of using value engineering in information technology project management. Procedia Computer Science, 3, 917-924. https://doi. org/10.1016/j.procs.2010.12.150
Walker, A. (2015). Project Management in Construction. Wiley. https://books.google.com.pk/ books?id=tT5EBgAAQBAJ
Watfa, M., & Sawalha, M. (2021). Critical Success Factors for Lean Construction: An Empirical Study in the UAE. Lean Construction Journal, 1-17. https://leanconstruction. org/uploads/media/files/shares/Lean%20Construction%20 Journal/LCJ_18_001.pdf
Winch, G. M. (2009). Managing Construction Projects. Wiley. https://books.google.com.pk/books?id=z8bwas7GGEkC
Yin, R. K. (2009). Case Study Research: Design and Methods. SAGE Publications. https://books.google.com. pk/books?id=FzawIAdilHkC
Zavadskas, E. K., Turskis, Z., & Tamošaitiene, J. (2010). Risk assessment of construction projects. Journal of civil engineering and management, 16(1), 33-46. https://doi. org/10.3846/jcem.2010.03
Zetha, H. R., Latief, Y., & Berawi, M. (2009). Integration Of Value Engineering And Risk Management to Improving the Efficiency and Efectiveness of Construction Industry in Indonesia. International Conference on QiR (Quality in Research).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Kamal Jaafar , Bilal Maarouf , Ahmed Elsayeh
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.