Enhancing construction value chain effectiveness in Hong Kong

Value Chain Management (VCM) is recognized as a contemporary concept that improves the organizational efficiency in construction by sustaining and enhancing the competitive advantages of all the participating firms in the production process. Nevertheless, competitive advantages were difficult to be enhanced or sustained unless effective strategies could be devised to save project cost and add project value. This paper reports a study that seeks to identify the value-creating activities in construction projects and to study their effectiveness to achieve cost-saving and value-adding. The results of a questionnaire survey conducted in Hong Kong suggested that all value-creating activities as identified in the previous literatures are effective to save cost and add value in the construction projects. In addition, 'Understanding clients' requirement' and 'Maintaining effective and sufficient communication route' were found as the most effective activity to achieve cost-saving and value-adding respectively.