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The Application of Value Engineering in the Saudi Construction Industry Essay Example

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The Application of Value Engineering in the Saudi Construction Industry

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Saudi Arabia is also a member, achieved new heights in terms of the construction contracts awarded (AME Info, 2010, “Kuwait construction industry - hitting new heights”). According to the previously mentioned article, the value of the construction contracts for the GCC region doubled at the end of the year 2006 from the figure at the end of the year 2004 due to a rapid surge in the region’s real GDP following a boom in oil prices in the years 2003 - 2006. However, since then, according to Gulf (2010, Pp. 2 – 3), financing conditions for construction have become difficult despite the Saudi Arabian government’s infrastructure plans and a more modest real GDP growth expected for the next three years has created a requirement for delivering better value in construction. The real GDP growth rate for Saudi Arabia peaked in the year 2003 to about 8% p. to maintain a value of about 6% p. for the years 2004 – 2005 (Gulf, 2010, Pp. For the year 2003, the gross value of construction output in Saudi Arabia amounted to SR 46.3 billion and construction activities contributed 5.8% to the GDP (Franklin & Andrews, 2005, Pp. According to the figures presented in (Gulf, 2010, Pp. 2 - 3), the Saudi Arabian GDP growth rate slumped to about 0. for the year 2009, prior to recovering to about 2% for the year 2010 with an expected growth rate of about 3% p. for the next three years as depicted in the figure below. Thus, now a greater need exists for emphasising value engineering in the Saudi Arabian construction industry.Value Engineering (VE) refers to a methodology for improving value in construction by trying to customise quality and by optimising the life cycle cost of a construction project (Al-Yousefi, 2008, Pp. 2 – 3). The VE process identifies opportunities to remove unnecessary costs involved with a construction project, while ensuring that the quality, reliability, performance and other critical factors / specifications for a construction work meet, or exceed client expectations (Dell’Isola, 1997, Pp. xvii – xxvii). According to the previously mentioned author, the application of VE to construction not only results in savings in funding and time for construction, but proper application of VE present improvements in quality, reliability, maintainability and performance for construction. Thus, it makes sense to try to understand better value issues for the construction industry in Saudi Arabia because now competition is more intense than ever and

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preview essay on The Application of Value Engineering in the Saudi Construction Industry
  • Pages: 28 (7000 words)
  • Document Type: Essay
  • Subject: Unsorted
  • Level: Masters
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