Value engineering for cost optimization of architectural works in a public office building project: A case study in Badung, Indonesia

I Wayan Sudiasa; Anak Agung Ngurah Roy Sumardika; M. Yusuf

doi:10.21744/irjeis.v12n4.2619

Authors

I Wayan Sudiasa
wayansudiasa@pnb.ac.id
Politeknik Negeri Bali, Badung, Indonesia
Anak Agung Ngurah Roy Sumardika Politeknik Negeri Bali, Badung, Indonesia
M. Yusuf Politeknik Negeri Bali, Badung, Indonesia

Keywords:

architectural works, construction management, cost optimization, Indonesia, material selection, Pareto analysis, value engineering

Abstract

Cost pressure in building projects can lead to incomplete work or scope reduction when expenditure is not systematically aligned with required functions. This study evaluates the application of value engineering (VE) to architectural works in the construction of the Perumda Air Minum Tirta Mangutama office building in Badung Regency, Indonesia. A quantitative case-study approach was applied using an adapted four-phase VE workflow consisting of information, creative, analysis, and recommendation phases. Project cost data, drawings, work specifications, unit-price analyses, interviews with project parties, and market-price surveys were used. A Pareto-based screening identified 15 high-cost items from 49 architectural work items. Alternatives were then assessed using five criteria—cost, quality, time, constructability, and aesthetics—with reported weights of 33.33%, 26.67%, 20.00%, 13.33%, and 6.67%, respectively, using a Zero-One-based prioritization and evaluation matrix. Seven alternatives were recommended. Their combined baseline cost was IDR 1.470 billion, and the proposed alternatives reduced this to IDR 1.208 billion, producing a saving of IDR 261.90 million. This corresponds to 17.82% of the seven selected items and 5.87% of the analyzed architectural-work cost of IDR 4.462 billion. The largest saving was obtained from replacing the Bengkirai timber stair railing with a hollow-steel railing (IDR 77.38 million).

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