Dynamic Benefits Maximization Model for Renovation Works of Landed Residential Properties in Malaysia

Christy P. Gomez1 & Abdulazeez U. Raji2

1Assoc. Professor, Department of Construction Management, Universiti Tun Hussein Onn, Malaysia. 86400, Batu Pahat, Johor, Malaysia, Phone +60125377247, cpgomez@uthm.edu.my
2PhD Student, Department of Real-estate and Facilities Management, Universiti Tun Hussein Onn Malaysia, Phone + 601126661524, gp140062@siswa.uthm.edu.my

Abstract

In Malaysia, landed residential building design for mass housing has been influenced by the orientation towards a “seller’s market, without prioritizing the changing needs of the owner-occupant. This has contributed to the growing trend of having to “remodel” homes that is currently dominated by “low-value adding practices” that are embedded within traditional benefits realization principles, amounting to brief freezing. There is a disregard for client’s engagement at the construction phase, wherein the client is constrained by the practice of restrictive benefits realizations. This issue is underlined by a predominant positivist orientation to the issue of client participation that does not recognize residential housing client’s ability for competency acquisition in realigning requirements to maximize benefits. This paper proposes that value maximization for such a client can best be achieved through dynamic engagement with the renovation contractor to allow for value-driven ‘disruptive innovation’ practice during the construction phase. Focusing on requirements capture as a process rather than an output, it is proposed that client’s requirements can be realigned to maximize benefits based on a dynamic benefits realization model. This issue of benefits maximization is viewed from a social science perspective of primary stakeholder engagement within a legitimate peripheral mode of participation acting from within a community of practice whilst operating in a relational contracting environment.

Keywords

Benefits realization, disruptive innovation, renovation works, relational contracting.

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Reference

Gomez, C.P. & Raji, A.U. 2015, 'Dynamic Benefits Maximization Model for Renovation Works of Landed Residential Properties in Malaysia' In:, Seppänen, O., González, V.A. & Arroyo, P., 23rd Annual Conference of the International Group for Lean Construction. Perth, Australia, 29-31 Jul 2015. pp 803-814

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