Proper Management Is Essential For Successful Completion

Published Date: 02 Nov 2017

Abstract

Proper management is essential for successful completion of any project, especially construction projects due to its unique and special characters compare with other industries. Value Management (VM) and Risk Management (RM) are the key areas to achieve project objectives by enhancing performance and reducing risks. VM deals with achieving benefits on resource spent in terms of monetary and as well as nonmonetary and RM dealing with handling uncertainties which affect the project adversely (and/or favorably???).

Since both processes have significant similarities among them, merging those two within the single framework is sensible and logical. Integration is useful in theory and applicability is depends on nature of local construction industry. Thus this research focused on the possibility of the integrated approach of RM and VM in the Sri Lankan construction industry.

By analyzing previous studies and publication on the particular subject the integration in theoretical was investigated. Further, current status of RM and VM in local construction industry was studied to verify the potential and applicability of integration to Sri Lankan construction industry and identify the upshots and obstructions for the integration. The interviewees were conducted from experts from construction industry, both Consultants and Contractors.

The research facts exposed currently formal RM practice is rare in the local construction industry and proper RM is essential for medium to large scale project. And application of VM is recognized more than RM by the industry, but not to Europe and American construction industry standards. Further, proper VM application is acknowledged by the experts since countries like Sri Lanka facing resource scarcity. And an integrated approach is welcomed by respondent, but is desperate unless the adequate measures have been taken. It was found that, it can be achieved by corporation of parties involve, especially Government by introducing hard and fast system. Finally, positive and negative side of the outcome and restrictions to integration are communicated in this study.

Keywords: Risk Management, Value Management, Integration of RM and VM

Chapter 01

Feasibility of Integration of Risk Management and Value Management practice in the Sri Lankan Construction Industry

Introduction

1.1 Background

Construct Industry professionals feel that conventional practice is inadequate due to it is shortfalls and increased complexity of construction Projects (Dey, 2009). As a result, ground-breaking thinking is compulsory for advancement of construction industry. Hiley and Paliokostas (2001) argue that, three aspects need to be focused to complete the construction projects successfully: well established objectives and approach to meet those objectives, and dealing with potential risks connected with the project. The first two thoughts are incorporated with Value Management (VM) and third one is fall in Risk Management (RM) context.

Risk is defined by various School of Management thoughts and researchers time to time, all are surrounding by two main criteria; first there must be a chance to minimum two effects and second, one of the upshots must affect the hope adversely (Okmen and Oztas, 2003). There is bewilderment about the definition of risk, because most of the articles, only talk about the negative side of the event. But OGC Guide (2007) challenged the general definition by considering positive side of the risk event. According to OGC Guide (2007) risk is uncertainty of outcome, whether positive opportunity or negative impact.

As we all know, risk is high in construction projects due to high capital involvement, contribution of multiple parties, characters various project to project; in terms of design, budget, geographical location, local government bodies’ rule, clement change, project team, resource availability, public intervention and Government direct involvement as Client and indirectly impact by its rules and regulations (Poh and Tah 2006). Need for systematic RM is strongly recognised by industry players since RM play major role to manage constrains; Cost, Quality, Time and Scope (Kangari 1995). However, Maximum output of formal RM is not consumed by the industry since proper RM procedure is seldom used (Dey 2009).

Project success is depend on implementation of appropriate management suit with nature of the project, especially RM and VM to manage the cost, quality and time which are key objectives of each and every project. According to Dillas (2006) some risk to be taken to maximize the value rather than go for risk avoiding option. Risk involve with construction projects are mostly dynamic; Impact and likelihood of occurrence various throughout project life cycle (Alfredo Del Cano et al, 2002). Further, Dillas (2006) argues VM also must be consider along with RM. VM is essential to satisfy client through achieving better value for money spent on, and it leads to satisfaction of the all the parties involved; Clients, Consultants, Contractors and Suppliers, general public and Government (Norton and McElligott 2004).

According to Norton and McElligott (2004), VM can be defined as "logical, multi-disciplinary endeavour focussed on evaluating the functions of product to achieving the best value at the minimum overall life cycle cost. Some other terms such as value engineering (VE) and value analysis (VA) are used by schools of management thoughts, but it is generally accepted that the term VM cover the all other value methodologies (Shen and Liu 2003, p.485).

Better VM supports to achieve Hard saving; easily measurable such as cost savings, Soft savings; indirect benefits such as buildability (Hiley and Paliokostas 2001). VM is a powerful tool to handle resource constrains involve with construction projects (Lin and Shen, 2007). OGC Guide (2007) have stated the positive outcomes that can be achieved by proper VM application such as provides room for entire project review, chance for build team cohesiveness among parties involve, establish the project constrains, and provides space for other project management aspect such as budgeting, cutting unwanted costs, project crushing, activity prioritisation and etc. Steven 1996 cited in Leung and Chu 2003, p.350) argues, VM should be implemented from the pre contract stage; inception, feasibility study, outline and detail design stage to post contract stage; construction and maintenance.

VM and RM contribute considerable segment in project management practice and both are practiced in industry up to certain level formally and as well as unconsciously. Since both practices are undergone through almost same kind of processes, possibility to combine under single roof is high and beneficial (Norton & McElligott, 1995). RM and VM in a premeditated shell could help the management to come for the optimum decision at the beginning stage of the project. A number of previous studies such as OCG (2007 Guide), Kirk (1995) and etc., proposed theoretical framework for integrated VM and RM process. Further, Norton & McElligott (1995) argue that RM can be enhanced by parallel application of VM. Rather than stick with a process of adding things in because of risk and eliminate them due to value, it is recommended that the both practices once put together will reduce the reprocess of ideas (Ellis et al. 2004). Theoretical benefits of integrated approach is welcomed by industry and practised in UK construction industry. But, according to Berawi et al (2007); research conducted perspective of UK infrastructure Projects, the benefits consume at actual situation are lesser than theoretically expected level. So, there is confusion on applicability of integrated approach in practical situation which is established in theoretical platform.

Areas related RM and VM independently studied in the past in context of Sri Lnankan construction industry. However there is a lack of comprehensive study in the concept of practicability of the Integration of RM and VM in the context of Sri Lankan construction industry. As we discussed early, nature and characters of construction projects various county to country. The construction industry in Sri Lanka covers a complex and comprehensive field of activities involving many operative skills and conditions, with the contribution of around 6%-7% to GDP over the past decade (Abeynayake, 2009). So, it is essential to offer best project management service to local construction industry. Thus this research anticipates in evaluating the possibility of integrating RM and VM processes in the Sri Lankan construction industry.

1.2 Problem Identification

Application of appropriate RM and VM enhance the successful completion of construction projects by managing project constrains properly. VM improve the worth of the output by adding value for money spent on and while RM support to achieve the objectives through identifying causes of uncertainty which adversely affect the success of project. Both are used in construction industry; even in Sri Lanka, up to certain level and have considerable similarities among them. So, treating both in a single framework is rational and theoretically favourable. Thus, the Study focus on scrutinize the possibility of integrating VM and RM in the context of Sri Lankan construction industry.

1.3 Problem Justification & Important of Study

Generally VM and RM is practised in construction projects all over the world; in local construction industry as well. Combining both process under one roof is acknowledge by a number previous researches, but practicability in the context of Sri Lankan construction industry is still suspicious. So, there is a vacuum for the question of "Feasibility of integration of RM and VM in Sri Lankan Construction Industry?" And better management is needed for countries like Sri Lanka which suffer from resource scarcity and political unstable. So, focus of this research is exploring the feasibility of integrating RM and VM to implement efficient project management service in Sri Lankan construction industries. Thus, studying the potential for integration in local construction industry is precious.

1.4 Aim and Objectives

The core endeavour of the research is to evaluate the possibility of the integration of the two key management practices known as RM and VM in the context of Sri Lankan construction industry. In order to reach this aim and objectives are set as follows,

Analyze the present stage of RM practice in the Sri Lankan construction industry.

Analyze the present stage of VM practice in the Sri Lankan construction industry.

Examine the practicability of the integration of RM and VM practices in context of Sri Lankan construction industry.

Identify the outcomes of the integration of RM and VM.

Identify the limitations of such and integration of VM and RM in Sri Lankan Construction Industry and provide insights for a better integrations of VM and RM strategies

1.5 Scope and Limitations

This Research was carried out in the context of Sri Lankan construction industry. This study focuses only on the analysing the potential of integration of the RM and VM. Also in this study design stage is considered. The processes is investigated in the sight of both consultancy and contracting organisation

1.6 Chapter breakdown

Chapter 1: Introduction

Chapter one presents the background to the study, problem identification, problem justification, aim & objectives, methodology, scope and limitation and research framework of the study.

Chapter 2: Literature Review

This chapter provides an overview of current thinking in RM and VM practices in the construction industry and the potential for their integration.

Chapter 3: Research Methodology

This chapter explains the research methodologies that will be used to achieve the aim and objectives of this study.

Chapter 4: Data Analysis

This chapter discusses the collected data and critically argue on subject matter.

Chapter 5: Conclusions, Recommendations and Further Research

This chapter concludes with the research findings, recommendations, basis for further research

1.7 Methodology

A wide-ranging literature survey was carried out by referring range of journals, articles, books, dissertations and World Wide Web to investigate the current view of RM and VM and to investigate possibilities to integrate both practices.

Semi-structured interviews was conducted with the professionals who have greater knowledge in the area of RM and VM to study the current status of both practice and the possibility of their integration in Sri Lanka, associated issues in the subject matter.

Data were collected through semi-structured interviews. The interview questions were designed based on the information gained from literature review.

Collected data were analysed through qualitative analysis techniques. data reduction was done through the developed interview transcripts and categorized sensibly to discussed on sub area of the studies.

1.8 Approaches to the Research Problem

Through the Literature Review it is clearly known that integration of RM and VM is theoretically beneficial and would enhance the results of both processes. As a theory it is acknowledge by industry players, but question is whether both can be treated within single structure in the real scenario or not. But some other previous studies tried to explore the practicability of integration of both process. According to Hiley and Paliokostas (2001), integration of VM and RM is already accepted by UK construction industry and performing it in practice. Further they state, UK clients have lack of interest to go for RM and VM practice due to their negative mind set; worry about additional consumption of time and money. This can be defeated by providing a combined efficient service through integration of both practices. From the above mentioned research findings, we can’t come to a decision that the outcomes fit with our local construction industry, because of its unique nature as disused early. So, it is better to check the feasibility in the context of local construction industry. For that, it is decided to investigate (a) current states of RM and VM application in industry (b) potential for integration and (c) outcomes and barriers for integration.

1.9 Hypothesis

1.10 Research Framework

Risk Management

RM Process

Risk Identification,

Risk Analysis,

Risk Evaluation,

Risk Response

Risk Monitoring

Risk Management

RM Process

Risk Identification,

Risk Analysis,

Risk Evaluation,

Risk Response

Risk Monitoring

Intergration

Theoretical Outcomes

Cost and time saving

Elimination of duplication of effort

Initial savings through the implementation of early in the project

Recognition of RM and VM

Economic projects

Increased value and reduced risk impact

Generation of innovative management tools

value Management

VM Process

Orientation

Information

Speculation

Analysis

Programme planning

Programme execution

Ranking

Summary & Conclusion

Cost and time saving

Uncertainty management

Effective project management

Recognition of RM and VM

Economic projects

Increased value and reduced risk impact

Generation of innovative management tools

Summary & Conclusion

Chapter 04

4.0 Data Analysis and Discussion

4.1 Introduction

Established aim and objectives of this study were achieved by analysing collected data through qualitative data analysing techniques. The interviewees’ experiences and view on the area of RM and VM were extracted and presented in logical manner to critically evaluate each and every objectives of this research.

First, current states of RM and VM application in local construction industry were disserved and analysed from the view point of experienced industry players. Data extraction was focused on relationship between both processes and results were presented to evaluate the potential for integration of RM and VM in the setting of Sri Lankan construction industry. Further, outcomes of integrated approach; both positive and negative, and root to break barriers for integrating RM and VM are investigated at last of this chapter.

4.2 Application of Risk Management

The development of the Sri Lankan construction industry has influenced by the political and economic risk during the past few decades. At present construction industry is one of the most energetic, innovative and technically advanced of any sector in the Sri Lanka. Sectors like Sri Lankan construction industries with contribution of around 6%-7% to GDP and 7.7% of employment (Central Bank Report, Sri Lanka) of the total labour force of the country, to be managed properly for the advancement of whole nation through advanced project management practice. For the advanced project management service, risk should be managed in efficient manner, since risk involvement is high in construction project as per view of Poh and Tah (2006) as discussed early in Literature review.

RM and current states of RM are analysed from the respondents’ point of view under this section. Findings are evaluated and presented under separate sound classes; familiarity of RM practice, concept of RM, client interest in RM, present states of RM application, professional involvement in RM and benefits of RM, for clear understanding.

4.2.1 Familiarity of RM in Practice

All ten respondents have knowledge on RM procedure, since most of them have undergone RM practice in their undergraduate and Master studies and as well as private workshops. But they are not familiar with formal RM practice in real situations, but risk are managed at site level by relevant professionals; Site Engineer, Material Engineer, Hydraulic Engineer, Mining Engineer, Services Engineer and etc with the supports of each others. All the respondents agreed that in industrial environment, they didn’t get a chance to practice deeply in RM practice even though they have adequate academic knowledge to perform.

According to gathered information from respondents, overall idea found that informal group discussion and progress review meeting are used to risk identification and shared experience is used for risk analysis. Further, relevant professionals respond to identified risks associated with their respective field of specialization. None of the professionals interviewed have undergone complete set of RM process with all the procedures and methodologies. All of them deal with risk in a number of projects throughout their career, but not systematically.

4.2.2 Concept of Risk Management

As per the view of Othman (2008) discussed in Literature Review, mainly three steps involve with RM process are identified; (a) risk identification, (b) risk analysis and (c) risk response from collected data of this particular research. All of our respondents considered risk as threat to the success of a project. In the literature, the views regarding risk are directed to the both negative and positive aspect also. But in this study, it was completely strange thinking for respondents and none of them consider positive side of the risk.

From the overall responses of interviewees, the RM can be defined in an innovative way; process of delegating obligations to the specialised divisions such Supervising & Site Engineering, QA & QC (Material & laboratory) Engineering, Hydraulic Engineering, Mining Engineering, Services (mechanical, Electrical & Plumping) Engineering and etc. As this kind of delegation of responsibilities is used to practiced in Sri Lankan construction industry through sharing previous experience among each other professions without any formal RM process, the above mentioned definition is obviously acceptable in the context of local construction industry.

4.2.3 Client interest in Risk management

Intention of clients towards implementation of formal RM process in Sri Lankan construction industry is the major force to determine endurance of RM application in industry. Clients’ financial and time delegation towards RM is analysed in this section.

Majority of respondents accepted the clients’ less demand for formal RM practice, even they aware of risks involve with construction projects. Further, clients have knowledge general risks such political, financial, environmental and etc, but they are reluctant to evaluate and quantify the effects of those risk. The major reason pointed out by respondents for less demand for formal RM application is clients mindset; clients feel money and time required for RM process is additional burden. The benefits of proper RM practice are not clearly communicated to clients, and respondents accepted their fault in honestly.

All the respondents said that clients never asked for separate RM service and they expect to include with basic consultancy service. Some respondents mentioned that technically qualified clients like to go for separate RM in some situation but not educated clients. There is a horrible argument on deference in-between technically qualified clients and educated clients. Further, most of the educated clients feel that contracts actor and consultants have the obligation to bear the risk effects by their own cost. Their awareness of RM process is the main problem imposing this status. As per majority respondents’ opinion, uneducated clients trust the guidance given by consultants and believe that they take care of them without a separate procedure to control the risk.

On the other hand, there is no construction consultancy firm which provide RM as its one of the main service. And one respondent argued that, this may be the reason for clients’ misunderstanding about importance of formal RM practice; clients feel that risk can be managed with the basic consultancy service, no need to go for separate RM service. Some of the clients tend to identify possible risks that badly affect the project, but they are reluctant to go further due to above mindset. Further he argued that, it is consultants’ duty to make clients aware.

One well experienced respondent conveyed his idea on the platform of condition of contacts used in construction industry such as FIDIC, JCT, ICTAD and etc. In his point of view, there two categories of risks, one should be bear contractor; technical risks, risks by site conditions, risks involve with supply of resources and technology & etc and other one by client; war, hostilities, insurrection, riot, commotion & etc. And he suggested to client to go for outsourcing to manage risks, but in real situation is not so due to unawareness of benefits of formal RM practice.

4.2.4 Presence state of RM Application

For a developing country like Sri Lanka where large infrastructure facilities are to be initiated, need of innovative management approaches and effective management techniques for construction industry is acknowledged by the key professionals. Application of RM techniques and procedures are yet to be emphasized. Application of RM in the Sri Lankan construction industry is analysed in this section in respond to the interviewees’ opinion in the current status of RM application, the key professionals’ involvement in the RM diligence and their adequate knowledge in the formal RM techniques and methodologies, and the benefits that can be obtained from the formal RM procedure in Sri Lankan construction Industry.

Current status of RM in Sri Lankan construction industry is analysed through the respondents’ view on the present stage of RM and their considerations for that status. Involvement of professionals in RM is analysed through the respondents’ opinion on the adequate knowledge of professionals in the RM formal procedure in Sri Lankan construction industry. Benefits of formal RM procedure are analysed under hard and soft benefits that can be obtained by the RM in Sri Lankan construction industry.

Present Status of RM Application

Almost all of the respondents agreed that the formal RM procedure for a project is very rare in the Sri Lankan construction Industry. However, risks in projects are managed in Sri Lankan construction industry, but not in a formal organized way. Majority of the respondents said that they used their intuition to analyse the effect of the risks in most circumstances. Further they stated that the risk analysing techniques are used in some critical circumstances, but that was also limited to some extent.

All the respondents strongly objected to that RM is not practiced in the Sri Lankan construction industry. They further stated that RM is being done in the industry, but a RM workshop or a separate formal RM procedure is rarely practiced.

The need of a separate formal RM procedure for large and complex projects is acknowledged by all of the respondents. However, majority of the respondents criticised the use of separate formal RM procedure for small scale projects. They explained that for small projects, RM can be done along with other consultation services and a separate process is not essential.

Several reasons have been elaborated by respondents to the lack of formal RM process application in Sri Lankan construction Industry. Those reasons can be categorized as following,

Clients’ awareness

Professionals’ involvement

Marketability of RM

Separate culture of RM

Additional burden

Regulations regarding RM

All the respondents agreed that clients’ awareness is the biggest restriction in practicing formal RM procedure in Sri Lankan construction industry. Generally clients considered RM as an additional burden for them. It requires adequate time, multi disciplinary professional involvement and additional cost for conducting separate RM process. That resulted in clients’ avoidance in practicing RM. Most of the clients are actually unaware of the benefits that can be obtained by the RM practice. According to interviewees, unawareness of clients regarding RM resulted in the absence of clients’ demand for separate RM process. That drives the consultants to conduct RM studies incorporated with other services that give the result of poor RM of a project. So the unawareness of clients is the main driving force for the lack of formal RM application in Sri Lankan construction industry.

Professionals’ involvement in the formal RM is another problem criticised by the interviewees. In Sri Lankan construction industry, according to respondents, the knowledge of most of the professionals in formal RM methodologies, techniques and procedures is not adequate to conduct a workshop or separate management procedure. This resulted in reduced professional involvement and engagement in formal RM. This also considered as critical by the respondents.

As strongly stated in literature review, the respondents also mentioned the difficulty of marketing the RM in the industry, especially to the new clients. However this problem is common to all consultancies. The main driving force for this problem is the unawareness of clients and professionals engagement in formal RM.

Also as required by some other management services, the RM requires a different culture amongst the consultancy organization. That will result in adopted RM in the organization and require additional experts in the field to effectively carry out the RM process in projects. Since this scope is relatively difficult to the consultancy organizations, it will result in the reluctance of the consultancy organizations in the application of formal RM.

Generally, formal RM is considered as an additional burden to the clients and consultants because of the time constrain and financial burden. This will result in avoidance of separate RM process and incorporation of RM into other services. Despite of the savings and benefits that can be obtained by formal RM, this consideration is illustrious in the industry.

Since there are no regulations by government as a mandatory or requirement for separate RM studies in public projects or private projects, it is not necessitated to conduct a formal RM study.

The interviewees’ suggestions to overcome the lack of formal RM usage and to help this discipline to achieve the recognition it deserves in the industry as follows,

Mandatory regulations by government

Awareness programs

Training and seminars for professionals

Internalisation in university courses

Standardization by relevant institutes

Involvement of Professionals in RM

The nature of RM services relies on the participants’ qualitative background and their ability to interpret and apply RM concepts. So the education and training play key role on the success of RM that results in successful achievement of project objectives.

All the respondents admitted that in Sri Lankan construction industry, compared to whole very few of them have broad knowledge in formal RM methodologies, techniques and procedures. However, most of the professionals have basic knowledge in RM, but they don’t have adequate knowledge in conducting a separate RM process. Most of the professionals are practicing RM with their past experiences and intuition. Addition to these, adequate knowledge in risk identification and analysis techniques are necessary for successfully conducting a separate RM process and planning and implementing risk mitigation plans.

The interviewees stated several reasons for this status in Sri Lankan construction industry. Those are,

Demand deficiency by clients

Deficiency of RM culture in organizations

Lack of training opportunities

Absence of government regulations

Inadequacy of required knowledge

To overcome those problems and to establish a work force with adequate knowledge and training in RM methodologies, techniques and concepts, the respondents’ posited suggestions are, conducting seminars, workshops and awareness programs amongst professionals regarding formal RM, regulations regarding RM by institutions and internalisation of RM in university courses.

Chapter 05

5.0 Conclusion and Recommendation

5.1 Conclusion

As a human being we all apply management tools in our day to day life. The required level and process of management techniques various according to the situation which to be handle from informal to advanced structure. From the small family structure to multinational organizations adapt their own management aspects to match with their requirements. Since complexity nature of construction industry and involve with high number of uncertainties, a well established formal management is mandatory for successful completion of a construction project. In that thought, advanced project management is practiced in construction projects all over the world; in Sri Lankan construction industry as well.

RM and VM are falls under project management aspects and have great significance on success of project management practice. VM enhance the project objectives in terms of monetary; quantifiable in terms of financial aspect, nonmonetary; assessable using Cost-Benefits analysis, and while RM concretes way to achieve project objectives by managing constrains. VM can reduce risk at the same time RM can provide openings to boost value. So, there is a strong thought in the literature that VM and RM are complementary processes that's why an integrated approach of VM and RM should be scrutinized. Theoretically, the integration is acknowledged and recommended as effective management tool. Practicability of the integrated approach was investigated up to some extent in Europe context, but there is no clear framework for integrated approach. Further, feasibility of integration depends on nature of construction industry; European context disparate Sri Lankan construction industry. Thus this study aimed to examine feasibility of the integrated approach in the Sri Lankan construction industry.

A complete literature survey was carried out to examine the potential for integration theoretically. Interviews were conducted based on knowledge gathered through literature review, among well experienced industry players. The present condition of VM and RM is explored and through that potential for integration is studied. Further, upshots; both positive and negative, and barriers for integration evaluated as well.

The data shown that practice of formal RM is rare in the Sri Lankan construction industry. Even though clients are aware of possible risk which may affect success of project, they are not prepared to go for separate RM service. The reason for less demand for formal RM practice is clients’ negative mindset regarding effort to be taken in terms of time and cost. And benefits of RM practice are not clearly communicated to clients, as it is consultants’ obligation to educate clients in the particular project subject matters. Further, it is found that, Sri Lankan Construction industry clients completely trust consultants and they don’t like to outsource additional RM service to manage risks which to be bear by clients.

Further, there is no construction consultancy firm to offer RM service as its main business. On the contractors’ side, well experienced project managers and contract administrator responded that, technical, site issues and project management risks are managed at site level through delegation of responsibility to relevant departments. But organizational risks; Project Dependencies Resources, Funding, Prioritization are managed at head office through some sort of formal RM practice. So, overall, RM practice is rare due to lack of clients’ demand and some sort of formal RM processes are followed at site level and top managerial level, in current of Sri Lankan construction industry.

As per there respondents’ point of view VM is more recognized than RM in Sri Lankan construction industry. Further, clients request for the proper VM practice to their projects with misunderstanding of VM concept as cost cutting; respondents argued that clients stress consultants to do the VM studies to incorporate it with design process rather than conducting workshops as the clients think it as time consuming process which incurs additional cost. But finally consultants forced to bear the losses after things went wrong. However it was mentioned that the separate VM study and its benefits are getting recognized by the industry. Further, contracting organizations go behind VM procedures for optimum utilization of resources, ease of construction, and improve buildability and technology applicability.

The data revealed that there is a less awareness among the industry regarding the links between RM and VM. The data indicate that majority of interviewees accept VM and RM as complementary processes. However there was a strong objection to this consideration as the both processes serve different purposes and represent different boundaries. The data revealed the acceptance of similarities between RM and VM. It was concluded that the consciousness regarding the links and similarities of RM and VM are in a satisfactorily level among the professionals and low among the clients. Data indicate that there was no acceptance regarding the total duplication of effort of conducting separate workshops for RM and VM. Data revealed that there may be constant recycling of ideas and that can be managed by allowing interactions between RM and VM workshops. Interview data rejected the consideration of using same team for RM and VM workshops. There was a suggestion to use part of a team in both workshops thus the tendency of effort duplication can be eliminated. The data revealed that there is a potential to integrate RM and VM workshops. The integration helps to remove the tendency of effort duplication and increase effectiveness and credibility of the processes. Rather than considering each process’s objectives, considering the whole project objectives the process need to be integrated. Since the processes are disparate, require different mindset and serve different purposes the integration was argued as not necessary. The integration would result in to less clarity of purposes, confused thinking and subsequently less effective results. However majority of the respondents agreed there should be an integrated approach of VM and RM.

The data expressed the uncertainty of the applicability of the integrated approach. Theoretically the integrated approach is possible and the advantages outweigh the disadvantages. In Sri Lankan construction industry other than the combined workshops, the integration happens, sometimes without the intention. It was accepted that not as a formal approach the integration exists in the industry. It was indicated that the integrated approach would be beneficiary to the Sri Lankan construction industry. But need of a rigid approach was acknowledged since formal RM and VM studies are rarely conducted in the industry. More over the grater fragmentation of the industry is a significant threat to the practicability of the approach. Data showed that the positive outcomes rather than negative outcomes can be obtained by the integrated approach only by better coordination, better management, better facilitation, better planning, corporation of the client and the stakeholders’ participation. Otherwise the outcomes may be undesirable. Data revealed the significance of the resistance imposed by the industry. The traditional approach among the industry and the greater fragmentation of the industry were considered as significant resistance.

As a conclusion to the findings of the research, it can be summarised as the formal RM application in the construction industry is rare in Sri Lankan. But formal VM application is getting recognised by the industry although in present it is less. The potential to integrate the VM and RM is acknowledged by the industry. The Applicability and the practicability of the integrated approach are desperate unless the adequate measures have been taken. The integrated approach would only be beneficiary with a rigid framework and the corporation of the parties. The possible positive outcomes outweigh the negative outcomes of the integrated approach.

5.2 Recommendation

From the established findings and conclusions through respondents’ valuable shared experiences and outlook, several thoughts can be recommended as follows,

Gazetting new Acts and Ordinances to regulate RM and VM practice under Government concern.

Conducting awareness programs to convey the benefits of RM and VM.

ICTAD has to take responsibility to train industry professionals regarding RM and VM procedures.

Cover the RM and VM practices by academic syllabus more and more wide and deep.

Include standard framework with Conditions of Contract; ICTAD conditions of Contract.

Formation of separate institutions for RM and VM.

Set the culture to suit with RM and VM practice in construction industry organizations.

Kick off RM and VM process along with inception stages of the Project.

Introduction of framework for integrated approach of VM and RM workshops.

5.3 Further Research

RM and VM are key and emerging area in the project management context. This research study focused on investigates possibility of integration of RM and VM; through understand the current situation of RM and VM application in Sri Lankan construction industry and found that integration is possible with rigid agenda and malty parties’ corporation.

And, it was felt that, dig this theme more deeply and try to fix a framework for share effects of integrated approach; sharing risks and Values, among the parties involved. So, it will be an interesting an area to study and have to fix a rigid structure as acceptable by all parties; client, consultant, and contractor. Further, enforcement of application of fixed framework will be high, if it is done through government body such as ICTAD.