Examining the role of value management in controlling cost overrun [application on residential construction projects in Egypt

Abstract

Abstract Actual cost of construction projects generally differs from planned cost, where this could reach a value between 21% and 55%. In Residential construction, cost overruns form a crucial problem. A suggested methodology to mitigate this problem is Value Management (VM), which has proven to be an effective approach. Thus, the main objective of this paper is to examine the role of VM in Controlling Cost Overrun, with special reference to Residential Projects in Egypt. A literature review was applied on the basics of project cost implementation. In addition, a qualitative analysis of case studies was performed. Finally, a questionnaire survey that assessed the impact of applying VE on Residential projects in Egypt was performed. Findings of this paper highlighted the value added from applying Methodologies of VM, where it was observed that it could achieve 15–40% savings of the total project cost.