The Theory-Practice Gap in Value Management-A Case Study in Sri Lankan Construction Industry

Abstract

Construction industry is a leading contributor to the economic, social and environmental sustainability of the country. However, it heavily consumes resources. Hence, it is vital to utilise resources efficiently and effectively. In this context, ensuring sustainability and value for money are crucial constructs in successful construction project delivery. Value management (VM) is widely accepted as a proactive concept for managing value. Although, VM concept is extensively accepted internationally, its applications do not seem to be well embraced in the construction sector of the majority of developing countries including Sri Lanka. The concept has not been practiced effectively by the industry practitioners due to lack of understanding of VM concept. Hence, this study aims to investigate the theory-practice gap in VM in Sri Lankan construction industry. A literature review followed by seven case studies were carried out and gathered data were analysed using code-based content analysis. Findings revealed that there is a theory-practice gap in VM resulting in ad-hoc informal implementation of VM job plan. Although theory states that VM can apply at any stage of a project, the case study projects have applied VM concept mainly during post contract stage as a cost cutting strategy. The study recommended strategies to bridge the VM theory-practice gap in order to deliver best value for client's money and ultimately achieve sustainability in Sri Lankan construction industry.