Assignment - S Hotel

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
BACHELOR OF QUANTITY SURVEYING (HONOURS)
QSB60203 VALUE MANAGEMENT
AUGUST 2018 SEMESTER
VALUE MANAGEMENT CASE STUDY REPORT
GROUP MEMBERS:
NO. NAME STUDENT ID
1. OOI YIN JI 0319962
2. PANG KAI YUN 0319802
3. SAM WEI YIN 0320364
4. WAH YUN CHEN 0319115
5. YEO KAI WEN 0319844
6. ABD'ALLAH SAEI-UL-HAQQ 0324556
7. LEONG YU XUAN 0325102
LECTURERS : SR. LOO SEONG KING
PUAN HABIZAH BINTI SHEIKH ILMI
SUBMISSION DATE : 26 NOVEMBER 2018

TABLE OF CONTENTS
NO. TITLE PAGE NO.
1.0 Introduction 3
1.1 Primary purpose of VM study 3
1.2 Benefits of VM study 5
2.0 Executive Study of Project 6
2.1 Brief Description 6
2.2 Summary of Problems 8
2.2.1 Objective 1: Consider Life Cycle Cost 9
2.2.2 Objective 2: Increasing Building Efficiency 9
2.2.3 Objective 3: Eliminating Unnecessary Function 9
2.3 Value Management Study undertaken 10
2.3.1 Design of the Study 10
3.0 Value Management Tools and Techniques 12
3.1 Function Analysis System Technique (FAST) 12
3.2 Compound Approach 14
3.2.1 Precast hollow-core slab floor construction 14
3.3 Cost Reduction Approach 14
3.3.1 Eliminate glass skylights in roof covering 14
3.4 Space Functional Analysis 15
3.4.1 Function Analysis of Project Concept 16
3.4.2 Space Functional Analysis by Floors 16
3.5 Priority Setting Matrix 18
4.0 Proposed Change in the Design 23
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TABLE OF CONTENTS
NO. TITLE PAGE NO.
5.0 Technical Data 24
5.1 Sound Insulated Solid Wood Doors in Guest Rooms 24
5.2 Use of Precast Hollow Core Slabs 24
5.3 Eliminate glass skylights in roof covering 26
5.4 Change corridor lightning from Fluorescent Light to LED
light
27
5.5 Change wall finishes from wallpaper to plaster & paint 29
6.0 Cost Analysis 30
6.1 Change to sound insulated solid wood doors in guest rooms 30
6.2 Use of Precast Hollow Core Slabs 31
6.3 Eliminate glass skylights in roof covering 32
6.4 Enlarge the dining lounge area 33
6.5 Change corridor lightning from Fluorescent Light to LED
light
34
6.6 Change wall finishes from wallpaper to plaster & paint 35
6.7 Cost Summary 36
7.0 Action Plan 37
8.0 Conclusion and Recommendation 39
9.0 Reference 40
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1.0 Introduction
1.1 Primary purpose of VM study
Value Engineering and Value Management techniques are systematic team-based
approach to achieve better value and cost optimization of projects without affecting the
required performance level. In the 1980’s, the term Value Engineering was further developed
to Value Management by the UK’s construction industry. However, Value Engineering is
actually the preferred term and most usually used in the US.
Value Management is an important technique throughout the entire construction
process, which is from the inception stage to completion stage. A Value Management study
that is implemented adequately is able to reduce the unnecessary cost of a project which is
different from traditional cost cutting tools such as omission of certain elements to reduce the
cost of a project. Value Management study is a systematic process to enhance the initial
project cost by eliminating unnecessary cost of elements in the project. Moreover, it can
provide better value for money to the client in terms of cost, time, quality and performance of
the project. The Value Management technique is also used to reduce risks such as late
delivery of project, cost overrun and poor quality buildings.
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Figure 1.1: Construction Cost Relationship
Figure 1.1 demonstrates the relationship between project development process and
cost implication. According to the figure below, it shows that for a greater potential savings,
value management technique must be applied during early stage of development.
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1.2 Benefits of VM study
Value Management study contributes in identifying unnecessary cost which are not
essential for a good project. The benefits of value management study are shown below:
❖ Value Management study identifies and removes unnecessary cost with alternative
design solutions while maintaining performance and quality.
❖ Value Management provides better value and better quality buildings.
❖ Value management provides better focus on the projects and also to the client’s
objectives.
❖ Value Management cultivates and improves relationships.
❖ Value Management tends to work more on effective design.
❖ Precise and clear project brief and decision making.
❖ Value Management improves efficiency in a project.
❖ Value Management study can promote communication and common knowledge.
❖ Decisions are made with great confidence and knowledge as it can be supported by
data and performance criteria.
❖ Value Management enhances competitiveness.
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2.0 Executive Study of Project
2.1 Brief Description
A Value Management study is carried out on the proposed project which is situated in
the Golden Triangle district, located on a 1,500 square metre site. The site itself is a relatively
small piece of land for commercial use which is located in the area of high building floor
ratio. Taken this commercial consideration, our client wishes to construct a hotel with a
vision to deliver a unique product to the market. This project, S Hotel is an 11 storeys
development project. There are a total 126 guest rooms in S Hotel. There is one floor of the
podium which houses facilities such as swimming pool, BBQ area, spa etc.
Table 2.1: Summary of Project Details
Element Description
Project Name S Hotel
Project Status A new development project which is in 35% of the design stage
No. of Floors
11- storeys of the hotel consists of:
- 7 storeys of typical floor guest rooms
- One storey of the mechanical level
- First floor of hotel lobby
- Ground floor and one floor of basement parking
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Ground Floor Plan (left) First Floor Plan (middle) Typical Floor Plan for guest rooms (right)
Podium Roof (left) Front Elevation (right)
Render drawings of the S Hotel
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Render drawings of the S Hotel
2.2 Summary of Problems
During the briefing, our client has highlighted several key issues and the outcome that
he wished he could obtain at the end of the Value Management study. The key driver for the
execution of value management is due to the project design was found that over budget. A
contingency approach must be adopted to resolve this issue. Achieving savings could not be
possibly done by a normal cost-cutting exercise while maintaining the function of the
building which would lead to a less satisfactory external appearance of the building. An
essential investigation of the value of the project is required in order to reach that level of
budget saving. Therefore, the aim and objectives of this study are derived to match with the
client’s concern.
Aim: Increase Value for Money (VFM)
In order to compete with other major hotels in KL City, our client aims to have the
highest value for money so that he could provide the highest quality of experience at the least
cost. Generally, the value can be increased by either adding extra functions that match the
travellers’ needs or by reducing the overall whole life costing of the building. It is crucial to
achieving an optimal balance between the advantages expected from the project and the
resources required to achieve the goals in order to obtain the highest value for money. A
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sound and creative design is definitely a key element in contributing value for money.
Therefore, a detailed assessment of the proposed design is required if any alternative design
with the same function but the lower cost can be made.
2.2.1 Objective 1: Consider Life Cycle Cost
To serve the purpose in achieving maximum value for money, all costs incurred
during the whole lifespan of the building must be evaluated and examined. The life cycle cost
includes the initial cost, maintenance and repair cost, energy, water and replacement cost as
well as its salvage value. By taking consideration of life-cycle cost, a more accurate ROI can
be calculated as all factors of cost in both long and short terms are observed. Also, since the
client wishes to run this hotel on their own, this step is important to greatly reduce the cost
needed during the operation of the hotel. For example, window walls are used in hotel rooms
to reduce the needs of artificial lighting.
2.2.2 Objective 2: Increasing Building Efficiency
Building efficiency refers to the proportion of the building’s rentable area which is
not occupied by the services and circulation area. If there is more rentable area which are
referring to the hotel rooms, the client is able to receive more revenue from his business.
Typically, the increasing rentable area can be done by eliminating unnecessary spaces which
do not contribute to the function of the building and transform such spaces into rentable
areas. Sufficient circulation area must be provided to ensure a comfortable experience in the
hotel.
2.2.3 Objective 3: Eliminating Unnecessary Function
Unnecessary function refers to the elements which do not add any value to the
project’s fundamental requirement. The project’s unnecessary cost may be caused by the poor
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layout of the building, wastage of materials, incorrect construction methodology, outdated
technology, costly materials and others. This unnecessary cost can be eliminated with smart
design decisions and effective project management. Potential cost savings can be gained
through the removal of unnecessary costs. The resources saved can be allocated to their most
valuable uses after careful examination.
2.3 Value Management Study undertaken
2.3.1 Design of the Study
The value study was designed in three phases which are information phase, value
management workshop and implementation phase. Implementation phase involved a 2-weeks
information gathering and analysis period while the second phase took 5 days of the
workshop period. Finally, the implementation phase involved one week long report
production period. This value study team consists of 9 personnel which were independently
appointed specifically for this value study. Importantly, none of the members of the original
consultant team participated in this value study except initial interviews and final presentation
of recommendations during the end of the workshop. The independent team includes three
value study leaders, one architect, one structural engineer, two quantity surveyors, one M&E
engineer and one specialist space planning consultant.
Information Phase
Design and other crucial information were obtained from the client and the existing
project design team through interviews. The value study leaders analyzed the information
obtained and prepare a 5-days workshop agenda as follows:
● Examination of key issues of the project
● Creation of FAST Diagram
● Sorting strategic ideas for change through brainstorming
● Carry out functional analysis of elements
● Examine spatial arrangements
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40-hour Value Management Workshop
This is an investigation on the design which has been progressed to 35% at the design
stage. The 40-hour workshop stretches over a period of 5 days which follows the stages in job
plan which includes the phases of information, creativity, evaluation, development and
presentation.
Day 1: Examine the issues affecting the project.
Day 2: Study on spatial configuration to assess the proposed design. Ideas for change to the
spatial arrangement were created.
Day 3: Study the element and components for the design of the project. Ideas for change are
created.
Day 4: Transformed the sorted ideas that previously created into a number of value proposals
for change.
Day 5: Finalized the proposal development. Conduct a presentation of value proposals to
client and members of the original design team for their consideration to implement the
suggestions made.
Implementation Phase
A comprehensive value study report must be produced within 1 week from the date of
the workshop ends. The description of value proposals will be included in terms of
consideration for implementation by the project design team.
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3.0 Value Management Tools and Techniques
The outcome of the value management workshop is produced by the utilization of
various VM tools and techniques to propose changes in relation to spatial arrangement,
alternative materials, change to the elements and components of the hotel. The objectives of
the study is to ensure the client’s project reach the maximum value for money through the
design, that the project could be built for the budget set.
3.1 Function Analysis System Technique (FAST)
FAST Diagram is used as one of the VM techniques adopted to develop a graphical
representation to show the relationships between the functions of a project. In this project, the
FAST diagram for the hotel is illustrated in Figure 3.1.
Figure 3.1: FAST diagram
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Change to solid wood door in guest rooms
The original design for the guest room doors is without timber hollow door without
the sound insulation, however, by using the FAST diagram, noise reduction is the main
element that should be taken into consideration to improve the hotel stay experience. The
client is concerned about the external noise as it is located at the noisy street of KL city, LRT
sounds, nearby ongoing construction works and etc. Therefore, he wishes to keep the noise
from penetrating into the guest rooms to provide a quiet and peaceful sanctuary of the rooms.
However, the original design team did not take this issue into consideration.
Therefore, the function of sound reduction is required to reduce the noise in the guest
rooms in order to minimize disturbance. As a result, solid wood doors are installed as the
main doors of the guest rooms as shown in Figure 3.2.
Figure 3.2: Location of the solid wood doors
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3.2 Compound Approach
3.2.1 Precast hollow-core slab floor construction
The original design team proposes the typical floor construction is cast-in-place
concrete slab spanning between the concrete beams. Although cast-in-situ concrete slab is
incredibly versatile, it is costly and more labour intensive.
By using compound approach, we propose precast hollow core concrete slabs to
replace the cast-in-place slabs as it generates significant savings in construction cost and
time. Hollow core slabs serve the primary function to reduce the loading of the building
which in turn decrease the foundation required. Also, it is suitable for this project as hollow
core slabs can satisfy the larger spans and loadings of a hotel.
3.3 Cost Reduction Approach
3.3.1 Eliminate glass skylights in roof covering
There are skylights located in the roof in the original design with the purpose of
providing daylighting and ventilation. The basic function of a roof is to protect the building.
Therefore, the function of a skylight to penetrate sunlight is not essential to establish the basic
function of a roof. It costs more to install skylights in the roof as compared to constructing a
complete concrete flat roof.
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Moreover, with the concern of too much heat gain in Malaysia during the day through
the skylight, we decided to omit this element. Also, removing the skylight can reduce the
potential risks of glass breaking and injured the hotel guests due to strong wind and storm
damage since it is the weakest part of the roof.
3.4 Space Functional Analysis
Function analysis (FA) is considered to be at the core of value management (VM).
Miles (1972) always emphasized that VM has one specific purpose – the identification and
elimination of unnecessary cost. FA, or value method as it is sometimes called, is the
systematic process of identifying functions and their associated costs, and assessing the
necessity of those functions based on established criteria for the product or service.
FA is a technique which uses for identifying and describing the functions of an item
in a general so that some of the functions can be eliminated and other functions can be
combined. The purpose of function analysis is to simplify the design, operation, plan or
schedule of the item that can be less expensive to make or to use it. Functions are the
characteristics of an item which meet the desire of the needs of the user. It can be an element,
a characteristic or an action which makes the item “work” or “sell”. Function analysis
involves thinking such as why the item is important and necessary. This represents a higher
level of abstraction than when it focused on the item only. It begins with a listing of the
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functions of the item being studied, and it provides concise and a clear description of the
functions available.
There are six steps of function analysis when comes in functional approach, the steps
are as below:
1. Investigate the function of the total system
2. Investigate the function of the system components
3. Break the system down into quantifiable parts
4. Consider what each part does
5. Place a worth on each part
6. Evaluate and make comparisons
3.4.1 Function Analysis of Project Concept
Table 3.1: Functional Analysis at Project Concept Level
Item Project
Function
Types of Function
Verb Noun
1. Hotel Accommodate Guests Basic Function
3.4.2 Space functional analysis by floors
Table 3.2 demonstrates the analysis of the function of each space in the hotel based on
the layout plan. The function of space, type of the functions, designed area, proposed area is
analyzed to identify any unnecessary function and space in the previous design which bring
no essential contribution to the basic function of the hotel.
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Table 3.2: Space Functional Analysis at Ground Floor, First Floor, Podium and Typical Floors
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Based on the space functional analysis carried out, the lift lobby area and the open
area in the podium floor are found to occupy a large space only for circulation purpose.
Therefore, our VM team proposes the lift lobby area and the open area to be reduced by 20%
for lift lobby and removed the open space. Thus, such spaces are used to enlarge the dining
and lounge area. The increment of the dining area can possibly increase the revenue of the
hotel as the space can be rented out for event purpose. However, the circulation area at lift
lobby is maintained at the acceptable size to prevent cramped space.
3.5 Priority Setting Matrix
The Priority Matrix helps participants rank actions based on their time to complete,
cost, importance to quality, and availability of resources. This tool can be used to prioritize
strategies and actions as part of developing an action plan. It assumes that participants have
completed a root cause analysis first, so that the selected actions address the root causes of
the problem and not just the symptoms.
3.5.1 Change corridor lightning
Priority setting matrix table
The criteria for the selection of suitable lightning have been established as follows:
A - Cost
B - Durability
C - Maintenance
D - Ease of Installation
E - Color Rendering
Figure 3.1: Priority Setting Matrix of Lighting
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Weighted Scoring Matrix
Ratings: Excellent (5), Very Good (4), Good (3), Fair (2), Poor (1)
Figure 3.2: Weighted Scoring Matrix of Lighting
3.5.1.1 Recommendation on Selection
According to the result of Priority Setting Matrix and Weighted Scoring Matrix, it can
be seen that light emitting diodes (LED) obtained the highest score among the other available
options due to the cost effectiveness and longest lifespan. Besides that, compact fluorescent
light (CFLs) comes close with a score of 37 which took place in the second. The capital cost
of CFLs is the lowest but its lifespan is short compared to LED. The incandescent light bulb
had the lowest scoring among the three options. Although the score of durability and color
rendering given by the VM team is slightly higher than the fluorescents light but the scoring
weighted mark for maintenance is low.
In conclusion, light emitting diodes (LED) is recommended for use for the corridor of
the hotel.
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3.5.2 Wall Finishes
Priority setting matrix table
The criteria for the selection of suitable lightning have been established as follows:
A - Capital Cost
B - Durability
C - Maintenance
D - Attractive Finish
E - Cleanliness
F - Ease of Installation
G - Variety
H - Reliability of Supply
Figure 3.3: Priority Setting Matrix of Wall Finishes
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Weighted Scoring Matrix
Ratings: Excellent (5), Very Good (4), Good (3), Fair (2), Poor (1)
Figure 3.3: Weighted Scoring Matrix of Wall Finishes
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3.5.2.1 Recommendation on Selection
Based on the weighted scoring matrix above, it is analyzed that plaster and paint is the
best option with tiles cladding a close second.
The team gave a high weightage to cleanliness against some of the proprietary
partitions scored poorly which are wallpaper, tiles cladding, flake finishes, wooden panelling
and lamination. Also, they scored poorly in attractive finishes. Although they scored well in
durability, maintenance and ease of installation, the team considered these attributes as lower
priority of importance. Therefore, the plaster and paint and tiles cladding scored well in
cleanliness and durability in addition maintenance and ease of installation. Hence, plaster and
paint is chosen as the wall finishes for the guest rooms.
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4.0 Proposed change in Design
In this case, the change in layout plan is the enlargement of the dining area through
the reduction of lift lobby area.
Figure 4.1: Proposed change in design for podium area
Table 4.1: Proposed change in design for Podium Floor
From the Figure 4.1 and Table 4.1 above, the open area shall be removed and change
to lounge and dining area. Thus, the area of the lift lobby shall be reduced in how many 20%
and the remaining area shall change to dining and lounge area to serve the guest. Therefore,
the floor efficiency is increased from 2.76% to 5.01%. Thus, the circulation area at lift lobby
is maintained at the acceptable size to prevent cramped space. It shows that the usable area
for the dining and lounge area is increased and more revenue can be generated.
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5.0 Technical data
5.1 Sound insulated solid wood doors in guest rooms
Solid wood door prevents the transmission of sound waves into the guest rooms by
incorporating into the door. Figure 5.1 shows how the sound waves are reduced after passing
through the door. If there is no sound insulation function in the door, the sound will pass
through and enter the guest rooms without reducing the amplitude. Therefore, sound insulated
doors guarantee the guests a perfect room acoustics.
Figure 5.1: Noise reduction through sound insulated door
5.2 Use of Precast Hollow Core Slabs
The advantages of precast hollow core concrete slab over the cast-in-situ slab is
shown in Table 5.1. On the other hand, Table 5.2 demonstrates the cost analysis between
cast-in-situ concrete slab and precast hollow core slab. According to the study conducted by
Asamoah, Ankrah, Offei-nyako, & Tutu (2016), the precast concrete slabs are 23.22%
cheaper than cast-in-place concrete. Therefore, the precast hollow core concrete slab is
perceived to bring cost savings with extra function which is derived by using the compound
approach.
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According to (Nitterhouse, 2018), the comparison of hollow core slabs and
cast-in-situ concrete slabs are shown as follows.
Table 5.1: Comparison of usage between precast hollow core concrete slab and cast-in-situ slab
PRECAST CONCRETE SLAB CRITERIA CAST-IN-SITU SLAB
Mixed, poured and cured in a
factory while ideal conditions and
exacting measurements can be
maintained throughout the process
Quality Control Subject to humidity and
temperature of the day doing the
casting.
Labour efficient as work is done in
a factory
Labor Efficiency Work that can be done by
machines has to be do instead by
hand which is much more labour
intensive, therefore increasing
labour costs.
Can withstand raining as it is
already casted, can be lifted into
place during sunny day.
Weather Will affect by unexpected
rainstorm
Due to prefabrication, insulation
element can be incorporated within
the concrete which can save labour
and architectural design space.
Insulation Can only lining the interior of
the building with insulation
instead of the insulating power
from the slabs
Can do the casting of materials
ahead of time, holding them until
they are needed
Cast ahead of
time
Overlapping tasks and
improving efficiency is
impossible due to the amount of
space and labour required for
on-site casting.
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Table 5.2: Cost comparison between cast-in-place and precast floor slabs; Sources: Asamoah,
Ankrah, Offei-nyako, & Tutu (2016)
5.3 Eliminate glass skylights in roof covering
The concrete flat roof is replaced instead of skylights in roof covering in the proposed
project. The reason that the skylights is eliminated is because the amount of light and heat
cannot be controlled that comes through the skylights. And due to the direct sunlight
penetration into the rooms, it produces an unpleasant glare to the surface, and therefore
making it uncomfortable to do activities in the podium. For concrete flat roof, it is easy to
clean. For example, when cleaning a roof of stains, molds and algae, pressure washing is
often the fastest and most effective method. Pressure washing on a flat concrete roof is less
likely to damage the surface of the roof. Unlike skylights, cleaning of the skylight becomes a
hectic job as the placement of skylight is in the roof. One of the most important reasons the
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concrete flat roof is because the installation cost is cheap. The installation cost and
maintenance of the skylight is more when compared to concrete flat roof. In the conclusion,
concrete flat roof is considered a more affordable option than skylights.
5.4 Change corridor lightning from Fluorescent Light to LED light
Light Emitting Diodes (LED) light is chosen for corridor lighting for the proposed
project rather than fluorescent light because they last longer than compact fluorescent lamp
(CFL) which is energy saver bulbs,and the consumption of energy is less. The long average
lifespan of LED light is 50,000 hours, whereas for the fluorescent light, it is 8,000 hours.
Fluorescent light will emit infrared radiation which will lead to eyesight loss, and in some
cases it can even cause blindness. LEDs do not produce infrared radiation and contain heat
sinks to help them remove unwanted heat, thus making them cooler to touch. By replacing
fluorescent light bulbs with energy efficient LEDs will lower the lighting costs, since they
consume far lesser energy. However, LEDs must be supplied with the voltage above the
threshold and a current below the rating. Current and lifetime change greatly with a small
change in applied voltage.Also, the efficiency of LEDs reduces as the electric current
increases. Heating also increases with higher currents which compromises the lifetime of the
LED. However, according to all the reasons above, LED light is used for this project due to
its efficiency and long lifetime.
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Table 5.3: Life cycle cost comparison of LED, Halogen, CFL
Halogen CFL LED
Hardware Costs
Cost per bulb RM 3.50 RM 12.50 RM 13.00
Average lifespan
(hours)
1,500 8,000 25,000
Bulbs needed for
25,000 hours of use
21 2.5 1
Cost to replace bulbs
over 25,000 hours
RM 58.33 RM 39.06 RM 13
Energy Costs
Watts 53 18 12
Energy usage for 1
month at 4 hours a
day (kWh/month)
6.36 2.16 1.44
Energy costs for
25,000 hours of use
48.13 16.63 10.90
Total Costs
Hardware + energy
costs over 25,000
hours
RM 106.46 RM 55.69 RM 23.90
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5.5 Change wall finishes from wallpaper to plaster & paint
For wall finishes, we use the plaster and paint instead of wallpaper because paint is a
very affordable option when you need to transform the outlook of your home. There are a few
advantages of painting over wallpaper shown in Table 5.3. To restore the uniformity of this
part of the wall, you need to repair and repaint it. Thus, despites the pros and cons of the paint
and wallpaper, plaster and paint is chosen to improve the value of the proposed project.
Table 5.3: Advantages of plaster and paint over wallpaper
Criteria Description
Inexpensive Affordable option
Ease of application In a case where you are painting over a damaged wall, you can
apply primer paint in advance to applying paint over a darker
colour. This shortens your preparation time and makes the
process easier.
Universally applicable It is applicable to any rooms in hotel, unlike wallpapers can
only be applied in high moisture rooms.
Correcting mistakes A painting mistake can easily be painted over creatively. In the
case of wallpapers, rectifying mistakes is tougher and requires
more scrapping.
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6.0 Cost Analysis
6.1 Change to sound insulated solid wood doors in guest rooms
V.M RECOMMENDATION
ITEM: CHANGE TO SOUND INSULATED SOLID WOOD DOOR IN GUEST
ROOMS
ORIGINAL DESIGN PROPOSED DESIGN
Hollow core timber door Sound insulated solid wood door
COST BREAKDOWN
Total number of door = 126 door
Cost per door = RM 300
Total cost = RM 37,800
Total number of door = 126 door
Cost per door = RM 750
COST SUMMARY
RM 37,800 RM 94,500
Cost Savings / Extra Cost RM 56,700 (150%)
By changing the guest room door from the hollow core timber door to sound insulated
solid wood door, the client need to spend an additional cost of RM 56,700.00, which is 150%
higher than the original cost.
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6.2 Use of Precast Hollow Core Slabs
V.M RECOMMENDATION
ITEM: USE OF PRECAST HOLLOW CORE SLABS
Cast-in-situ floor slabs Precast hollow core slabs
COST BREAKDOWN
Total Area = 36,113m2
Cost per m2 = RM60/m2
Total Cost = RM 2,166,780
Total Area = 36,113m2
Cost per m2 = RM 48/m2
Total Cost = RM 1,733,424
COST SUMMARY
RM 2,166,780 RM 1,733,424
By changing all the suspended slab from cast-in-situ floor slabs to precast hollow core
slabs, the client can save an additional cost of RM 433,356.00, which is 20% less than the
original cost.
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6.3 Eliminate glass skylights in roof covering
V.M RECOMMENDATION
ITEM: ELIMINATE SKYLIGHTS IN ROOF COVERING
Glass Skylights Concrete flat roof
COST BREAKDOWN
Size = 8.2m x 2m = 16.4m2
Total unit = 2 unit
Size = 8.2m x 2m = 16.4m2
Total unit = 2 unit
Cost per m2 = RM60/m2
Total Cost = RM 1,968
COST SUMMARY
RM 16,236 RM 1,968
By eliminating the skylight in the roof covering and change it to the concrete slab
roof, the client can save an additional cost of RM 14,268.00, which is 88% less than the
original cost.
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6.4 Enlarge the dining lounge area
V.M RECOMMENDATION
ITEM: ENLARGE THE DINING LOUNGE AREA
Small dining area Enlargement of dining area
COST BREAKDOWN
Number of seat = 74 seat
Open Hour = 10hr
Spending per guest = RM 110
Turnover rate = 2hr per guest
Total earning per year = 5 guest x RM110 x
74 seat x 7 days x 4 weeks x 12mth
= RM 13,675,200
Worker = 15 worker
Salary per month = RM 7,000
Ingredients per people = RM 50
Total expenses per year = (15 x RM 7,000)
+ (74 seat x RM 50) = RM 108,700
Profit = RM 13,566,500
Number of seat = 142 seat
Open Hour = 10hr
Spending per guest = RM 110
Turnover rate = 2hr per guest
Total earning per year = 5 guest x RM110 x
142 seat x 7 days x 4 weeks x 12mth
= RM 26,241,600
Worker = 30 worker
Salary per month = RM 7,000
Ingredients per people = RM 50
Total expenses per year = (30 x RM 7,000)
+ (142 seat x RM 50) = RM 217,100
Profit = RM 26,024,500
COST SUMMARY
RM 13,566,500 RM 26,024,500
Loss profit / Earn Profit RM 12,458,000 (92%)
By having the larger space of the dining area, client can increase group bookings by
hosting business conferences, special events, reunions, family gatherings and weddings.
These can help to fill in the rooms during normal slow seasons. The dining is taken as a profit
generator as well instead of an amenity to the hotel.
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6.5 Change corridor lightning from Fluorescent Light to LED light
V.M RECOMMENDATION
ITEM: CHANGE CORRIDOR LIGHTNING FROM FLUORESCENT LIGHT TO
LED LIGHT
Fluorescent light LED light
COST BREAKDOWN
Total number of bulb = 133
Cost per bulb = RM 12.50
Energy Cost = RM 16.63
Total cost = RM 55.69 x 133
= RM 7,406.77
Total number of bulb = 133
Cost per bulb = RM 25
Energy Cost = RM 10.90
Total cost = RM 35.90 x 133
= RM 4,774.70
COST SUMMARY
RM 7,406.77 RM 4,774.70
Cost Savings / Extra Cost RM 2,632.07 (36%)
By changing all the lightning at corridor from fluorescent light to LED light, the client
can save an additional cost of RM 2,632.07 which is 36% less than the original cost.
34

6.6 Change wall finishes from wallpaper to plaster & paint
V.M RECOMMENDATION
ITEM: CHANGE WALL FINISHES FROM WALLPAPER TO PLASTER &
PAINT
Wallpaper Plaster and Paint
COST BREAKDOWN
Total area = 6471.36m2
Total Cost = RM 498,294.72
Total area = 6471.36m2
Total Cost = RM 232,968.96
COST SUMMARY
RM 498,294.72 RM 232,968.96
Cost Savings / Extra Cost RM 265,325.76 (53%)
By changing all the wall finishes of the guest rooms from wallpaper to plaster and
paint, the client can save an additional cost of RM 265,325.76.00, which is 53% less than the
original cost.
35

6.7 Cost Summary
Cost savings from specification changes:
ELEMENT ORIGINAL REVISED
Total (RM) Total (RM)
Arhitectural
Wall finishes 498,294.72 232,968.96
Roof finishes 16,236.00 1,968.00
Door 37,800.00 94,500.00
Structural
Floor construction 2,166,780.00 1,733,424.00
M&E
Lighting 7,406.77 4,774.70
TOTAL 2,726,517.49 2,067,635.66
TOTAL SAVINGS 658,881.83 (24%)
In conclusion, the client is able to save up to RM 658,881.83 which is 24% less than
the original cost by applying these changes as mentioned in the previous sections. At the
same time, the value of the resort is also increased.
36

7.0 Action plan
An action plan is prepared to implement the accepted recommendations during the
value management workshop. The action plan shows the actions need to be carried out by the
design team during the implementation. It is used to monitor the progress of the
implementation.
Table 7.1: Action Plan
CATEGORY RECOMMENDATIONS TASK ACTION TIMELINE
Architectural
Doors (typical
guest rooms)
Change to sound
insulation solid wood door
Amendment of
specification in
drawings
Architect Detailed
Design Stage
Revise cost plan Quantity
Surveyor
Roof finishes Eliminate skylights in roof
covering
Revised drawing by
changing the
skylight into flat
roof
Architect Detailed
Design Stage
Surveyor
Wall finishes
(typical guest
rooms)
Change wall finishes in
guest rooms
Change wall
finishes
specification in
drawings
Architect Detailed
Design Stage
Surveyor
Podium Enlarge the dining lounge
area
Enlarge the dining
lounge area in
drawings
Architect Detailed
Design Stage
Surveyors
37

CATEGORY RECOMMENDATIONS TASK ACTION TIMELINE
Structural
Superstructure Change floor construction
to precast hollow core
slabs
Amendment of
C&S drawings
Civil &
Structural
Engineer
Detailed
Design Stage
Surveyor
M&E
Corridor
lightning
Change from fluorescent
light to LED light
Propose changes of
lighting
Architect Detailed
Design Stage
Surveyor
Amendment of
M&E drawings
M&E
Engineer
38

8.0 Conclusion and recommendation
In a nutshell, the Value Management study carried out by our consultant team
successfully produced the value report that listed proposals for change in relation to material
changes, spatial change, elimination of elements and components of the hotel. This study
aims to assure the client can achieve the highest value for money in the design so that the
project can be built within the budget. A number of significant savings resulted from the
proposals made. Approximate 24% of cost saving is achieved through the value proposals for
this project which resolve the client’s key problem - over budgeting. Besides, the client’s aim
to achieve the value for money is achieved during the end of the value management
workshop.
It is strongly recommended that the Value Management study to be implemented for
all construction projects, especially during early design stage. Identification of client’s
requirements is made through function analysis was the main benefit and justification of the
value proposals to the client and project design team. Without the value analysis technique,
the value proposals would have little influence on the client and project design team’s
thinking. According to the cost analysis, the project is confirmed that it could be completed
within the budget as opposed to the original design which would exceed the budget.
39

9.0 References
Asamoah, R. O., Ankrah, J. S., Offei-nyako, K., & Tutu, E. O. (2016). Cost Analysis of
Precast and Cast-in-Place Concrete Construction for Selected Public Buildings in
Ghana, 2016. https://doi.org/10.1155/2016/8785129
BG_Property_Maintenance. (2018, January 17). Incandescent Bulb vs CFL Bulb vs
LED Bulb Part II • B&G Property Maintenance. Retrieved November 14, 2018,
from http://bgpmaintenance.com/incandescent-cfl-led-part-ii/
Biobaku, S. (2018, June 21). Wallpaper Vs Paint: Which is Better For Your Home? |
Private Property. Retrieved November 12, 2018, from
https://www.privateproperty.com.ng/news/wallpaper-vs-paint/
Compare Wallpapering vs Painting Costs. (n.d.). Retrieved November 12, 2018, from
https://www.kompareit.com/homeandgarden/painting-compare-paint-vs-wallpaper.
html
Comparing LED vs CFL vs Incandescent Light Bulbs. (2018, March 30). Retrieved
November 14, 2018, from
https://www.viribright.com/lumen-output-comparing-led-vs-cfl-vs-incandescent-wa
ttage/
Kang, Y. J. (2018, September 06). Will you actually save more with LED lights?
Retrieved November 13, 2018, from
https://www.recommend.my/blog/will-you-actually-save-more-with-led-lights/
LED vs. CF vs. Incandescent. (n.d.). Retrieved November 14, 2018, from
https://www.homepower.com/articles/home-efficiency/electricity/led-vs-cf-vs-inca
ndescent
Nitterhouse. (2018). Precast Concrete VS Site Cast Concrete, 1–7.
40

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