Cost reallocation in social housing projects considering the desired values of end-users. Issue 4 (19th August 2014)

• Record Type: Journal Article
• Authors: Ruiz, Joyce de Andrade; Granja, Ariovaldo Denis; Kowaltowski, Doris C.C.K.
• Editors: Kumaraswamy, Mohan; Ling, Florence
• Is Part Of: Built environment project and asset management. Volume 4:Issue 4(2014)
• Publication Date: 2014-08-19
• Subjects: Construction industry -- Management -- Periodicals; Construction projects -- Management -- Periodicals; Public works -- Management -- Periodicals; Sustainable buildings -- Periodicals; 624.068
• DOI: 10.1108/BEPAM-10-2013-0054
• Languages: English
• ISSNs: 2044-124X

Abstract

Abstract : Purpose: Challenges in social housing projects (SHP) in Brazil are mainly related to design and construction quality and cost constraints. Value delivery to end-users must be a goal, however jointly considered with the restrictions of such developments. In the SHP context, tight cost constraints frequently have a negative impact on delivering value to end-users. The research put forward the proposition that value enhancement can be achieved by reallocating costs to better meet the attributes most valued by end-users, without increasing initial project costs. Design/methodology/approach: A set of tools used in value methodology (VM) is adopted to assist a systematic process with the goal of attaining an optimal functional balance between costs and value delivery to end-users. Desired values were indicated by users in a previous study, resulting in an Index of General Significance (IGS). A single case study was carried out to test the approach in a SHP. Opportunities for improvement guided by the desired values of end-users were evaluated. Findings: The VM approach suggests that initial project cost constraints do not necessarily induce value loss for end-users, a recurrent problem that designers and stakeholders frequently face in such contexts. Improvements were made possible through simple cost reallocation. Research limitations/implications: A single case study was carried out to validate this approach. To create a generalized approach for other similar context further tests should be undertaken. Practical implications: The proposed VM approach was shown to be efficient in assessing decisions which designers and stakeholders must take, bearing in mind cost constraints and improvements in value delivery to end-users. Originality/value: An important lesson learned was that subjective parameters based on the desired values of end-users could be combined with technical and functional analysis, thus an objective improvement process was devised. The approach can have clear implications for the product development of SHPs to best match the end-user's value propositions, without neglecting financial and economic needs in such a context.