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Abstract
The purpose of this research is to examine how value is degraded during all phases of the construction process through the partial, erroneous, defective or otherwise sub-optimal execution of its representative tasks. This research examines the impact of sub-optimally executed construction tasks that linger in a non-conforming condition through project delivery, diminishing the expected value of the facility and resulting in the over-payment of construction services through lost value. The construction consumer is usually unaware of the value loss because these tasks are typically undiscovered or unresolved during the transformation phase and linger in a latent condition through the project turnover. Toward this purpose, this research introduces the Value Production Model to the industry of value management. Additionally, the concepts of value and waste and their interdependent relationship will be examined in conjunction with the Value Production Model.
A document search and hypothesis test using normal approximation to the binomial was used to determine if diminished tasks linger in a significant level in completed construction projects. If it can be demonstrated that a significant amount of value is lost in this manner, then construction consumers may seek methods of reducing task diminishment or seeking other contracting methods to mitigate lost value.
