Confirmatory Factor Analysis of Value Management Current Practice in the Nigerian Construction Industry

Abstract

Value management explicitly targets to optimize value by providing necessary functions at the least cost without sacrificing quality and performance. However, the activities/methods of this technique in emerging economies are here and there related to informal methodology. Therefore, the occurrence of these activities in an evolving economy requires investigation. The exploration of the extent to which the measured variables influenced the latent factors informed the need for this study. Data was retrieved via self-administered questionnaire from 344 registered and practicing construction professionals in Nigeria. The data was analyzed using SPSS for descriptive analysis and Structural Equation Modelling (SEM). Kaiser-Meyer-Olkin measure of sampling adequacy revealed that the internal consistency of the developed research instrument was appropriate. Confirmatory factor analysis indicates satisfactory goodness of fit among acknowledged determinants of the model. Furthermore, the study revealed three (3) phases of the activities/methods of value management in the Nigerian construction industry which include: information, information/function analysis, and creativity/evaluation/development/presentation phases. This means that value management activities and methods are being practiced in Nigeria, however not as per the typical methodology or standard. The need to carry out the practice according to the formal value management methodology is therefore recommended.