A new decade for social changes

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A new decade

for social changes

ISSN 2668-7798

Vol. 15, 2021

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Value Engineering: a promising tool to Oman Construction Sustainability

Abstract. Oman is an oil-dependent state like other GCC states. In such regions, particularly Oman, the construction industry is booming and is currently the largest employer for the private sector's Omani workforce. Moreover, Oman intends to diversify its economy to limit its dependency on oil to promote sustainability, as there is a possibility for future oil depletion.

However, the thriving construction industries continue to score poorly in sustainability, raising the necessity for sustainability measures. Thus, this article proposes incorporating value engineering in the Omani construction sector to initiate sustainable measures for the industry.

The article devised research questions elaborated using a systematic literature review to connect construction, sustainability, and quality aspects.

Keywords. construction management, sustainability, value management, value engineering, Oman

1. Introduction

The Oman based construction industry has witnessed remarkable growth in the recent past.

This growth was possible due to oil reserves, which have uninterruptedly sponsored construction-based development projects. Being a member of the Gulf Cooperation Council (GCC), the concept of value engineering (VE) is well learned and accepted in Oman. Value engineering has been attributed to the elevated value management practices by GCC based practitioners, the concept which was initially coined by the Kingdom of Saudi Arabia (KSA) (Al-Saleh & Taleb, 2010). However, sustainability and growth are yet to be achieved and can be possible by combining certain value engineering features into the processes and activities.

The challenges focus on value generation circle around cost and functions; therefore, limiting costs and uplifting functions would be a more suitable sustainability model. Oman based corporations in the construction industry have been undertaking value engineering to increase output while restraining the associated costs. Such an initiative could tremendously increase value. Besides, value engineering applications should expand to the planning stage, and the parameters required must be ensured before executing the planned design. The process flow diagram constituted by SAVE International can be seen in Figure 1. Figure 2 shows that VE cost is high in the planning stage and reduces as the project proceeds.

Technium Social Sciences Journal Vol. 15, 611-620, January, 2021 ISSN: 2668-7798 www.techniumscience.com

Tariq Al Amri, PhD. Student, Prof. Manuel Marey-Pérez Santiago de Compostela University, Spain

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Figure 1. Value Engineering stages in the form of a flowchart

Figure 2. Stages of the project and their relation to anticipated savings using VE (SAVE International, 2006)

The assumption is that value engineering will cut down production costs alongside effective, efficient engineering interventions' performance. Such a practice would elevate the quality of functions while reducing the associated costs. The GCC countries have been historically relying on fossil fuel with little focus on sustainability (Al-Saleh & Taleb, 2010).

Oman's engineering sector has mostly ignored concerns relating to water, health, construction materials, energy, and other safety measures. Such vulnerabilities rightfully regard the Oman construction sector to remain less sustainable in the future.

Value engineering has been practiced in the GCC with different terminology – value management. Scholars have already noticed the need for value management to make the GCC states more sustainable. Value engineering is an essential aspect of the whole value Technium Social Sciences Journal

Vol. 15, 611-620, January, 2021 ISSN: 2668-7798 www.techniumscience.com

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management, explicitly focuses on cost reduction and resource-saving. Emphasize is not merely on cost reduction; instead, the process must not compromise quality (Cooper, 2017). Therefore, value engineering decreases construction and maintenance costs and increases quality through changes made in the design. This manuscript focuses on value engineering, specifically how the Omani-based construction industry may be made more sustainable through value engineering.

2. Methodology

This study primarily stands upon secondary data sources collected from published research papers, books, and websites. The related literature was noted to center on sustainability and Oman based construction industry. The literature review spans through 2010 – 2019 to enhance the understanding of the construction industry behavior in Oman. Data collection was made possible with the help of Google Scholar to extract potential knowledge sources published during the two decades. To gather relevant sources, authors used keywords such as "value engineering for sustainability," "Oman construction industry," "value engineering parameters,"

and several others. Manuscripts focusing on sustainability in the Oman based construction industry were of primary emphasis. Besides, value management is closely themed to value engineering in the GCC context, focusing on productivity enhancement.

Authors targeted internally recognized journals published in the English language through the keywords mentioned earlier. The keywords were helpful to gather a database relating to value engineering and sustainability but in general perspective. Hence, the authors narrowed down their scope to further streamline then to the context of the construction industry in Oman.

The authors fixed the number of literature to 25 published sources, which were more concentrated. Authors cross-examined to ensure their purpose and objectives match the article's objective.

These articles focused on value engineering, sustainability, and construction in Oman.

Besides, additional focus was given to the processes and systems usually practiced in Oman, which would provide a framework for generating relations between the factors under study.

The literature review process consisted of five steps to extract more sense-making and valuable results. Authors started with formulating research questions, fixing the study's context, selecting and reviewing the literature, analyzing and synthesizing conclusions, and finally reporting the study. This study contributes to sustainability literature through value engineering.

The review of selected literature delivered the following research questions.

• Why is value engineering critical for the construction industry in Oman?

• How can value engineering achieve sustainability for Oman based engineering frameworks?

• What is the relationship between sustainability and value engineering?

• What are obstacles that impede the implication of value engineering in the Oman based construction industry?

• What factors may facilitate the faster incorporation of value engineering in the Oman based construction industry?

3. Results

3.1Importance of Value Engineering in Oman Construction Industry

According to the Mordor intelligence website, there are enormous opportunities to be explored in the construction industry of Oman, which calls for value engineering. The website states that the industry is on a growing trajectory in Oman, and the potential for diversification Technium Social Sciences Journal

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is evident, which will provide a lever for economic growth. Hence, the government is expanding its expenditure budget to support developments and stimulate the private sector's opportunities.

In parallel, it is crucial and acknowledged by the Oman state to reduce its reliance on fossil fuel – gas and oil. The state aims to achieve this objective by cutting its share in the GDP and substituting it with alternative economic activities. For this purpose, Oman's state has established a fund worth USD 106 billion, which will be utilized in the manufacturing and construction sectors (Albalushi et al., 2013). These initiatives explain how the Omani government regards value engineering and to switch her focus from oil dependence.

The Omani construction industry is expected to make an accurate assessment and effective use of available resources, as their target is to enhance output and quality while reducing costs through appropriate means. The articles further that the Omani construction industry must expand its scope to every domain needed for the populous. These domains will include the commercial sector, infrastructure, industrial, residential, and energy. This way, value engineering can ensure the timely completion of vital services in a minimal time with the most appropriate resources.

As there is a potential to lose fossil fueling resources, which may dry up and produce less or become less effective in producing energy, diversifying reliance toward solar energy may be a valuable strategy for achieving sustainability, decreasing pollution. Therefore, the government must accelerate its steps to expand the share of contribution of different sectors to the GDP, reducing the oil and gas sector's reliance. Recently, the Oman Aviation Group and ASAAS logistics have taken the initiative for consolidation to achieve this endeavor. The state of Oman expects to generate enough revenue from similar ventures that will support the local economy. In similar ventures, value engineering – structural safeguards are put into action in the design that will restrain value from dropping down while reducing costs (Karunasena et al., 2016). This strategy confirms that finances are utilized effectively for development purposes alongside the value generated is acknowledged globally. These systems ensure that alternative means are cost-effective and environmentally viable for development. Al Amri and Marey- Pérez (2020) have already acknowledged the need for cost savings to become an urgent call while projects continue to fall in meeting-allocated schedule and cost for the project.

Secondly, value engineering enhances value addition. It ensures the application of high- end products in the construction sector of Oman based infrastructure. Value engineering will cement possibilities of standing structures, which will less likely require maintenance that usually puts pressure on domestic resources. Third, value engineering conducts life cycle analysis; this analysis balances construction costs and afterward maintenance costs (Karunasena et al., 2016). These systems will give Oman's engineering administration a complete knowledge of the structures' life span, allowing them to better design future budget for sustainable development. Lastly, value engineering ensures that the maintenance of the structures is considered before structures are developed. For this purpose, alternative engineering options are considered to develop a more feasible and viable solution in terms of maintenance at a lower cost. These practices confirm that building lifespan in Oman is extensively evaluated, and the future maintenance costs are already accounted for or retained at a minimum margin. Value engineering stands upon the principle that projects are planned and executed precisely that future potential need for maintenance is restricted to minimal (Al- Saleh & Taleb, 2010).

3.2. Value engineering a sustainability enhancer in Oman's construction industry Sustainability focuses on a balance between the use and depletion of resources so that environment may remain protected. On the contrary, value engineering considers thorough Technium Social Sciences Journal

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examinations of engineering methods to improve the output and value of construction projects' products and services (Islam & Khadem, 2016). The fact that most development projects threaten the environment highlights the importance of sustainability. It is of no surprise to accept that the building industry is a threat and a reason for greenhouse gases. Alongside engineering projects heavily exploit natural resources. While reviewing the Oman construction industry, Islam & Khadem (2013) argued that a significant portion of domestic resources had been diverted toward the construction projects to diversify the economy. The utilization of natural resources has remained unmonitored and mostly unregulated (Saleh & Alalalouch, 2015). These unfair practices largely contribute to greenhouse gases, which could invite an unwelcome response from nature.

Sustainability can cause numerous affirmative benefits to the construction industry that may be extended to the Omani construction sector (Janani & Raj, 2018). First, managers must give due attention to efficiency and take responsibility while executing engineering interventions (Janani & Raj, 2018). By taking responsibility, the workers become aware of associated costs in environmental concerns and focus more on minimizing waste. Second, value engineering drives toward a sense of responsibility so that designs must consider environmental factors and secure energy in natural resources, including water and other resources (Spetnagel, 2010). Therefore, design engineers are now making structures, which will allow the sun to light up the room, and reliance on electricity is reduced.

Sustainability in value designs can be achieved through modularity (Zumelzu &

Doevendans, 2016). Modularity focuses on the ease of replacing the used elements in a structure. The technique is especially critical in designing apartments, where numerous components of the structure interact with each other, aiming for efficiency in resource allocation and utilization. For instance, in adjacent apartments, similar plumbing material and techniques will reduce installation costs.

Finally, value engineering is especially suitable for customized developments where the aim is sustainable buildings. Wao et al. (2016), centering on sustainable construction with the lens of value engineering, claimed that value engineering reassures the application of tools in making accurate and determined variations to restrict the propensity of unexpected and unintended changes that may occur in a project. Thus, it confirms that Oman's engineering frameworks involve early planning techniques to be induced in sustainable services. The numerous phases of design are consistent with the necessities of sustainability from conceptual to construction stages. In the Omani construction industry, it would be wise to incorporate value engineering job plans into administratively agenda attaining sustainable business systems.

Hence, value engineering is essential for incorporating building systems. Therefore, a significant focus must be given to sustainability measures. Constructing green buildings has become an essential aspect of modern construction. It ensures absolute environmental security and safety instead encourages applying suitable technology in design systems to execute sustainable development (Anastas, 2003). Oman construction industry assimilating these systems will achieve sustainability. Evans et al. (2017) called for sustainable engineering practices and considered value engineering ideas and precepts as pertinent features in devising appropriate systems to achieve sustainable development systems for potential engineering intrusion (Evans et al., 2017). Oman's thriving construction industry signals a need for efficient engineering designs to forefront quicker growth while employing valuable resources. Besides, value engineering confirms that the Omani construction industry does not produce extensive environmental pollution. Thus, it ensures the health quality of its populous, contributing to developing a sustainable system.

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3.3 The relation between value engineering and sustainability

The requirement of sustainability is due to various systems, but value-engineering notions are usually a replication of a sustainable method (Grober & Cunningham, 2012). Haase (2014) noted some feasible methods that an engineer can consider for any intrusion in the European Journal of Engineering Education. Value engineering is an essential part of the utilization of resources in constructional works. Rachwan et al. (2016) consider functional analysis as a pertinent constituent in value engineering. Therefore, it elevates the value of projects while analyzing functions. Hence, there are suggestions regarding alternatives to be explored for engineering interventions so that value grows while potential drawbacks in the design are restrained.

However, sustainability measures focus on initiatives, programs, and actions directed toward cultivating the conservation of available resources. Oman's essential resource is oil, and its unending exploitation provides sources essential for financing pertinent constructional projects (Mordor Intelligence, 2020). Sustainability circles around four central pillars include social, economic, environmental, and human aspects. In Oman's context, sustainability measures attempt to ensure the four pillars are accorded, and due attention is given to the planning stages of constructional projects. Considering the four pillars, value engineering, hence, holds a significant relationship with sustainability.

Concerns relating to humans – sustainability, the goal is to retain human capital with good health in a society, and direct investments to health systems, access to services, skills, and nutrition. It emphasizes the need to retain individual welfare for nourishing economic growth.

This way, value engineering ensures that humans have the necessary skills and capability in engineering backgrounds to support sustainability features in structures. On social sustainability, the aim is to assimilate ethics and principles in exploring societal systems (Saleh

& Alalalouch 2015). The accomplishment of this is due to the delivery of information for equality toward societal issues. Value engineering, thus, certifies that capital and resources are utilized wisely for the improvement of society and its systems.

Relating a sustainable economy, the availability of materials is critical for implementing projects to generate timely products and services. Value engineering guarantees this aspect significantly that it emphasizes the efficient consumption of scarce resources to obtain desired outcomes (Abidin & Powmya, 2014). It will also verify the economic intrusions that are finished within the specified time to reduce costs and indispensable resources. Lastly, concerning environmental sustainability, there is immense use of fossil fuels to power the engineering systems in Oman; therefore, evaluating the requirement to address greenhouse gas releases is vital for the climate.

Moreover, engineering practices, specifically construction works, consume most of the earth's scarce resources, thus elevating environmental deprivation prospects. Environmental capital, therefore, intends to protect natural resources, including water, minerals, air, and land (Purvis et al., 2019). In this situation, value engineering considers alternative means and materials of construction, which are environmentally viable. It highlights the application of green energy systems, for instance, solar power and design parameters that bring about the effective use of water and energy sources.

3.4. Factors that impede the incorporation of value engineering in the Oman construction sector

Safinia et al. (2017) consider the variables that delay applying value engineering principles in the Oman construction industry. Therefore, it will give relevant information on how value engineering notions can be applied to the engineering sector (Safinia et al., 2017).

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The oil production capacity of Oman is considerably low in comparison to neighboring GCC countries. Therefore, the employment of value engineering principles is viable alternatives that may lead to sustainable development. The journal presents several factors that regard the incorporation of sustainable technologies as a challenging task in the Oman construction industry. First, the costs of materials are too high (Safinia et al., 2017). Costs also relate to maintenance measures. Therefore, installations must be congruent to design. Obtaining and purchasing sustainable materials face upfront costs and acts as a significant obstruction to discourage the developers from seeing the same. The majority of sustainable materials possess higher costs than traditional materials, and most Oman stakeholders believe it happens across all sustainability-related materials (Safinia et al., 2017). The second factor is the shortage of a demanding culture for sustainable materials. Decision-makers in Oman find it challenging to implement green energy interventions because they do not appeal to clients who show little interest in accepting environmentally friendly materials. Besides, they incline to older design practices and not accepting effective practices to be applied.

The third feature is scarcity in the publication of strategies relating to sustainable materials. In a situation where acceptance of sustainable replacements increases in the Omani industry, possible clients will have adequate information on the varieties to select feasible alternatives (Powmya & Abidin, 2014). The media and advertisements do not consider these campaigns, hence tending to impede people's knowledge of the accessibility of such systems.

Fourth is the confines in the implementation of green regulation. The Oman government is doing little to ensure that green policy laws are employed in construction realms. Sin et al.

(2013) claims that the inadequacy in execution is due to the government's distress that it might propel investors who may not accept the new regulations (Sin et al., 2013). However, the Omani construction industry necessitates such guidelines so that sustainability is prioritized during development projects.

The fifth concern is the lacking information regarding sustainable materials among the Omani population. Sin et al. (2013) declared that mindfulness is considerable impairment of successful solicitation of sustainable avenues such as value engineering. There is the potency of offering the population a poor understanding of the construction industry's sustainable alternatives. Inadequate understanding is a prime reason limiting the utilization of value engineering. Other issues hindering the implementation of sustainable methods include restraining recycling plans available in the country, scarcity in the initiatives and interests of Omani government to inspire the use of such materials, inaccessibility of sustainable materials, and insufficient know-how in designers and builders to apply innovative technologies (Safinia et al., 2017). Therefore, the employment of suitable schemes will need an awareness of such policies so that sound systems are implemented to provide adequate ground for the utilization of value engineering concepts.

3.5 Factors that will Initiate a Faster Integration of Value Engineering Oman has been presently expanding its economy to restrict its dependence on oil. This strategy has opened ways for the construction industry and invited global players. By doing so, the state may integrate value design approaches in the Omani construction sector. The initial factor increasing Omani's amalgamation of value engineering doctrines is international players' availability to its construction industry. Recently, Oman initiated an economic partnership with China to build the Sino Oman industrial park costing 10.7 billion USD (Mordor Intelligence, 2020). This venture's purpose of elevating the utility of seaport that has been mostly underutilized and upheld international trade. This way, Oman invites global economies by opening its gates. Applying value engineering principles becomes urgent for a prompt Technium Social Sciences Journal

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application to serve toward the industry's sustainability in particular and the economy in general.

Furthermore, in Oman construction sector provides maximum employment opportunities, which makes it a critical component of the economy. National Centre for Statistics and Information 2016 reported that the sector provides employment opportunities for approximately 25% of Omani workers and 39% of expatriates (Buckley et al., 2016). Hence, the sector functions to instill the citizens with the necessary skills and experience, enabling them to meet their obligations (Abidin & Powmya, 2014).

Besides, a significant change has been noticed in people's perceptions of the benefits of sustainable alternatives. While interviewing project managers on value management, Al-Saleh and Taleb (2010) noted that sustainable concepts must be incorporated into the curriculum. The technique will warrant workers in the construction industry to hold the necessary value engineering guidelines to decide their techniques and materials (Abidin & Powmya, 2014).

Others concluded that sustainable methods are feasible alternatives and could be employed to make people follow other approaches to meet goals and execute tasks with resource value based on their tasks.

Albalushi et al. (2014) wrote about why value engineering is essential in the engineering sector. Their study concluded that projects must be completed within 20 months from the time of initiation. The study concluded that a project completed within the due period could earn higher engineering intervention returns. This practice elevates the knowledge and would provide a platform to the Omani populace to undertake delicate to value activities. Usman et al.

(2018) also examined Omani construction firms and records noteworthy cost reduction configurations through such utilization, resulting in a broader application and acceptability in the entire Omani construction framework.

4. Conclusion

The review of extant literature provides significant insights to answer the research questions. The review highlighted the significance of value engineering for Oman's construction industry and identified factors that stimulate practical application and hinder it.

The literature review also presented numerous means by which the fusion of value engineering will boost sustainability in the construction industry. It was found that Oman is witnessing significant growth in the construction industry because of its diversification strategy to expand the economy and restrain dependence on fossil fuel. Therefore, the demand for appropriate engineering systems has arisen to identify and apply sustainable economic development alternatives.

Further, the authors found that value engineering prominence for Oman's construction industry expands to reduce cost and waste and employment of suitable experts having relevant skills to boost sustainable techniques in a similar construction setup. Finally, value engineering is a pertinent factor to gain sustainability in Oman. Sustainability can achieve promising results since it offers the necessary guidelines that companies can adhere to, which will support the prudent usage of resources. It also provides a baseline guiding how the resources required for engineering interventions can be exploited for different developmental purposes.

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