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Developments in the Built Environment 7 (2021) 100049

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Developments in the Built Environment


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Addressing the capital cost barrier to sustainable construction


Mohammad Nasereddin a, *, Andrew Price b
a
Middle East University (MEU)/Jordan, Queen Alia Airport Street, Amman, 11831, Jordan
b
School of Architecture Building and Civil Engineering, Loughborough University, Epinal Way, Loughborough, LE11 3TU, United Kingdom

A R T I C L E I N F O A B S T R A C T

Keywords: This paper aims to address the capital cost barrier to sustainable construction (SC). Concepts and processes
Sustainability associated with sustainable construction, value management (VM) and total quality management (TQM) have
Housing been integrated into a novel approach to whole life cost reduction based on a framework and three supporting
Whole-life cost
processes aimed at improving project management understanding and decision making. Data collection was a
Value
Quality
triangulated approach across three stages: focus groups (23 participants); Delphi study (8 participants – 2 rounds);
and validation questionnaire (20 respondents). The research revealed that the capital cost of a LEED silver
certified building in Jordan is around 20–25% over the traditional buildings' capital cost. However, the increased
capital cost that clients’ in Jordan consider being acceptable for LEED is 5–10% - irrespective of the savings in
operational costs.

1. Introduction the future generations, there are multiple potential barriers and hurdles
that can impact implementation. One of the key barriers, is the initial
This paper aims to discover the scientific knowledge needed to capital cost of sustainable construction projects tend to be 2%–7% higher
develop a cost reduction tactical framework for ensuring sustainable than the cost of less sustainability buildings (Yang et al., 2017). Also,
buildings’ whole-life costs are acceptable to clients. The framework in- according to Goh and Sun (2016), these negative perceptions about the
tegrates sustainable construction (SC) with value management (VM) and initial costs have developed into one of the primary challenges to
total quality management (TQM) and is supported by three processes. delivering sustainable products.
The construction industry plays a significant role in the journey of
quality improvement associated with human life. Despite this, it has been 2. Literature review
observed that development and improvements led by the construction
industry have given rise to multiple environmental complications, 2.1. Sustainable construction
affecting the entire globe (Dilawo and Salimi, 2019). As mentioned by
Xiao (2017), as per estimation, the construction industry has become the Sachs (2015) stated that sustainable development can be defined as a
reason for an approximate 40% of energy consumption, 30% of the total process that enables the present generation to meet their own needs and
carbon dioxide emission as well as 40% of the solid waste production. demands without compromising the ability of future generations to seek
With continuous improvement associated with the construction sector, it sustainable values, growth, and development in terms of using sources
has provided an improved opportunity for the sustainable practice and and resources. Whereas sustainable construction it is defined as ‘the
policy developments and through these it has strengthened the sustain- sustainable production, use, maintenance, demolition, and reuse of
able development associated aspirations and dreams of the country buildings and constructions or their components', while sustainable
(Wahi et al., 2016). buildings and built environments are ‘the contributions by buildings and
Sustainability’s should be considered with construction projects the built environment to achieving components of sustainable develop-
which aim to develop accessible, productive, healthy and secure build- ment’ (CIB, 2021) – which means a sustainable whole life cycles for
ings through strategies that have minimal impact upon society, economy construction projects. Al Subeh (2013) stated that sustainable construc-
and environment (WBDG Sustainable Committee, 2014). Although sus- tion has attracted significant debate in Jordan in the wake of concerns
tainability concepts are vital for the world and crucial for safeguarding regarding environmental degradation. Despite the large-scale

* Corresponding author. Middle East University, Queen Alia Airport Street, Amman, 11831, Jordan.
E-mail addresses: mohdyn696@outlook.com (M. Nasereddin), A.D.F.Price@lboro.ac.uk (A. Price).

https://doi.org/10.1016/j.dibe.2021.100049
Received 6 April 2020; Received in revised form 27 April 2021; Accepted 29 April 2021
Available online 29 May 2021
2666-1659/© 2021 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

developments in the field of construction to preserve the natural envi- 2.2. Value management
ronment whilst delivering sustainable built environments and supporting
infrastructure, there is still intense need for socially and ecologically VM has evolved as an effective technique to reduce costs, increase
responsible response. Jordan faces serious problems in terms of imple- productivity and improve quality for construction projects (Atabay and
mentation of sustainable construction practices and technologies. Al Galipogullari, 2013). VM is “is an underlining concept applied within
Subeh (2013) noted, local communities in Jordan only play a minimal existing management systems and approaches based on value and func-
role in supporting and implementing sustainable architecture. The most tion-orientated thinking, behaviours and methods, particularly dedicated
appropriate intervention would thereby require a “strategy for address- to motivating people, developing skills, promoting synergies and inno-
ing medium-term and long term technological, institutional and value vation, with the aim of maximising the overall performance of an orga-
enablers for development” (Al Subeh, 2013). nisation.” (IVM, 2021). Rangelova and Traykova (2014) stated that VM
Al-Qatarneh et al. (2018) revealed several issues and challenges are addresses the needs of all the stakeholders. A VM study should thus affect
being faced by Jordan in the form of rapid urbanisation and use of vast everyone linked to the project. It helps the customers achieve value for
sources and resources. Most of the population lives in urban areas money at the same time fulfilling their needs. Rangelova and Traykova
resulting in increased demand for infrastructure. This has put pressure on (2014) also stated that VM studies ensure project managers meet dead-
the government in terms of meeting energy demands especially water as lines and remain under the budgets initially decided. Simultaneously, the
Jordan is one of the highly water-stressed countries. Also, issues associ- result is a product or service that conforms to the performance standards.
ated with construction delays and poor productivity have affected the If VM is implemented correctly, a company can save approximately
achievement of sustainability goals. 10–15% of the total project costs as it considers all alternatives and
Hussein (2018) also added that there a knowledge gap between reaches maximum efficiency ratios (Green, 2011).
stakeholders and a lack of benchmarking that have hindered industry
growth. These factors collectively adding value to sustainable construc- 2.2.1. VM timing and stages
tion practices. There are various stages at which VM study can be implemented.
According to Zainulabidin and Pasquire (2005), VM can be implemented
2.1.1. Relevant environmental assessment tools cost review at any stage of the project but it should be consistent throughout the
The Leadership in Energy and Environmental Design (LEED) is to the project life. This also means that the application of VM needs to be
United States what the Building Research Establishment Assessment well-defined and explained. This will help in understanding the overall
Method (BREEAM) is to the UK. Environmental aspects of buildings are purpose and utility of applying VM to different processes and activities.
fundamentally linked to the design economics which often includes a Additionally, when VM is implemented at the initial stage of any project,
complex trade-off relationship between the environmental cost, capital there are higher prospects of creating more value and benefits as the
cost and life cycle cost. LEED and BREEM provide the methods to better value process becomes consistent. Devaux (2014) added that projects
appreciate these relationships (Colombo et al., 2013). need to be managed as investments and values need to be ascertained and
analysed from the initial stages of projects. This also means that earned
2.1.1.1. Cost of LEED. In the early days of green construction or SC, valued from different projects and processes should be carefully related
when there was uncertainty regarding the concepts, the certification of to the business value to seek the right balance. This might require inte-
LEED was higher than compared to the current situation. With skepticism gration with international value standards. Additionally, the focus should
in relation to the framework of the LEED requisites along with inexpe- be more on applying the principles of value methodology along with
rience resulted in costs premiums in many LEED projects. In a study gaining multiple insights on the notion of a value proposition.
conducted by the energy-efficiency and sustainability standards on
behalf of the United States of Americas’ defense department on the cost 2.2.2. VM tools and techniques
and benefits of sustainable buildings; findings revealed that the extra cost As per the information shared by Malek et al. (2018), the notion of
of design and construction varies between 0 and 8% over the traditional value methodology is also associated with the value analysis and value
building (National Academies of Sciences, Engineering, and Medicine, engineering and can be further applied to several other industries not
2013). Hence, due to the higher costs of the project, the construction necessarily only construction. Karim et al. (2018) further added that the
companies stuck to conventional construction rather than green con- application of a valuation methodology is aimed to improve the value
struction (Chegut et al., 2014). But now the scenario has changed. As SC and has gained several synonymous in the form of value planning, value
evolved the construction materials are easily available, the required process, value management, and value analysis. However, when it comes
technology for SC is also approachable now. The cost of achieving LEED to the standard related to the utility, the subject of the value study irre-
certification has thus decreased in the recent years. In constituting the spective of its elements or recognition in the form of design, service,
project cost limitations or budgets, it is highly advisable to discriminate process, product, or procedure is known by the name of “project”. The
between the cost of construction which primarily considers only the hard structure of the value study is a part of the three-stage process in the form
costs, for example, the construction cost of the building, cost of the of pre-workshop preparation, value workshop, and post-workshop
equipment, furniture and fixtures, cost of the property (Chen et al., documentation and implementation.
2015).
2.3. Total quality management
2.1.1.2. Cost of BREEAM. It is states that there are several sustainability
measures that can be implemented for little or no capital cost but can The notion of Total Quality Management (TQM) was developed by
have a positive impact on the operational cost. BREEAM certification is the manufacturing industry that was initially incorporated by Japanese
based on having a “PASS, or “EXCELLENT” rating showing an increase in firms and has been marked with an increase in the quality, productivity,
the cost of capital from 0 to 1.71% for office and school buildings and and performance of sources and resources with an increased focus on
5.51% for healthcare buildings (Sharifi and Murayama, 2014). As per the quality by lowering prices and improving efficiency (Bettina, 2017).
research conducted by Parker (2012) based on “The Value of BREEAM”, According to Leong et al. (2014), TQM is a process of improving the
it was found that the cost increase varies from 1.2% to 20% and the overall quality aspect of an organisation by concentrating on improving
variation was mainly because of the clients’ experience of BREEAM the quality standards related to operations and functions of an organi-
application and material used. sation. It is also aimed at improving the efficiency and effectiveness of
organisations systematically. Rupha (2013) stated that critical success
factors for TQM are mainly in the form of focusing on the quality aspects

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of organisations and aiming at continuous quality improvement. It fo- ‘hard’ (technical) and ‘soft’ (cultural) dimensions of TQM must be
cuses on improving the quality of products and services along with concentrated on as they both contribute to the ‘continuous improvement’
improving customer satisfaction and acceptance in the short and long philosophy. But managers in organisations find it easier to implement the
run. It also involves teamwork while achieving organisational objectives technical or ‘hard’ dimension while ignoring the ‘soft’ dimensions lead-
in the most systematic manner. The most significant aspect of TQM is in ing to sub-optimisation of both TQM and performance elements resulting
the form of maximising the potential of an organisation while adding in the endangerment of sustainability. To address and seek optimal so-
value to the organisational functions in a critical manner. Zaid et al. lutions to the construction problems plaguing the construction industry,
(2018) further pointed out that implementing TQM in organisational one must consider the all ‘hard’ and ‘soft’ aspects such as social, political,
processes and activities require a lot of efforts and cooperation from technical issues and the inevitable trade-offs between them. Sachs (2015)
stakeholders. TQM is a process and approach that is based on a careful suggested that sustainability is a process of continuous development
assessment of sources and resources. It is based on understanding the aimed at integrating stakeholders for seeking mutual value in the social,
business dynamics and related environments and seeking inputs to add business, and competitive environment across the organisational frame-
quality to every business function and process. work. It aims to improve connection and relationships between different
stakeholders. Through implementation of this dimension the organisa-
2.3.1. Competitive advantage and zero defects tion will be able to extract the best of skill and knowledge from their
Leong et al. (2014) further added that TQM also leads to a competi- employees that will resultantly make the organisation more competitive
tive business advantage along with adding sustainability to business with a focus and goal to be the best in the industry, and without this focus
processes. Rupha (2013) added that TQM also helps in eliminating the on competitiveness, sustainability in terms of procedures and the
waste prospect along with making sure that sources and resources are organisational overall cannot be attained (Douglas et al., 2015). For
used optimally with zero defects and errors. This also ensures a higher sustainability concept to be best applied, it should be integrated with
degree of productivity and value creation process. Nevertheless, waste different management philosophy like TQM to foster the hard and soft
reduction links to the economic and environmental pillars of sustain- dimensions by people involvement, conformance to specifications and
ability – by minimising the recourses in use, waste is reduced, hence continuous improvement.
profitability is increased.
Rumane (2013) posited that the core concept of the zero defects 2.4. SC, VM and TQM conceptual linkages
principle is the premise that ‘the whole is the sum of its parts’. Many
organisations have and are keen to embrace TQM techniques and phi- Davies and Davies (2017) stated that there is a close relationship
losophy in their workings, but some are hesitant or outright reluctant, between VM, TQM, and SC. They also suggest that VM is aimed to
because of the common perceived misconception that the implementa- maximise the value of a project leading to organisational benefit and
tion of these techniques and philosophy is costly and can cause disrup- customer satisfaction. It helps in limiting risk factors along with
tions and delays within the projects. Even though TQM has been balancing values and benefits, and aims to use sources and resources in
recognised to enable improvements in performance and costs within the an integrated manner leading to a better degree of benefit and advantage
industries, it has been applied in, including the construction industry. in the long run. Sachs (2015) added that when SC and VM are applied to a
Zaid et al. (2018) pointed out that TQM suggests that all functions, project, there is a better prospect of sustainable construction and prac-
processes, and stakeholders of an organisation are inclined toward using tices. He further stressed on the usefulness of triple-bottom line (TBL)
quality as the only source of adding value to business productivity. TQM that used social and environmental elements rather than measuring only
should be an integral part of an organisation rather than a process being return on investment (ROI) and profitability. The implementation of VM
applied because of the external pressure. This ensures a greater degree of and SC helps in realising the value of TBL in a significant manner. Gillier
competitive advantage and value by maximising efficiency of the orga- and Piat, 2015 further added that there several barriers related to the
nisation and customer satisfaction. application of sustainable construction and some of the key issues are
Rumane (2013) stated that TQM is a long-term business prospect that related to higher construction and maintenance cost and also estimating
needs to be implemented in a planned manner. It also means that orga- the operational and functional costs.
nisations need to be sure of short-term issues and problems before sys- Therefore, capital costs for sustainable buildings must be evaluated
tematically addressing long-term prospects. Jay and Barry (2014) against those of traditional buildings to highlight the benefits and worth
pointed out that TQM also helps in improving the competitiveness of of ‘green’ buildings hence for motivating stakeholders to consider using
organisations along with reducing costs. It helps in adding a strategic sustainable construction methods. Increased efficiency and low carbon
benefit to organisations by ensuring the quality remains the focal point of emissions of sustainable buildings result in reduced running costs; these
business processes and activities. Zaid et al. (2018) further added that benefits provide builders with a strategic advantage and improve
proper implementation of TQM is useful in meeting customers' needs and competitiveness in the business (Dobson et al., 2013). VM and sustain-
demands along with focusing on loopholes affecting the quality param- ability can serve as an optimum combination for
eters of organisations. sustainable/green-building principles, life-cycle costs and a project that
accomplishes in satisfying the needs of the people throughout the whole
2.3.2. TQM dimensions life cycle of the project. During the conceptual and design phases of the
Mazher et al. (2015) stated that within the construction industry four project, VM techniques and methodology can be linked with those out-
dimensions are essential for the construction process, namely: lined in the SAVE is to improve sustainable construction (WAO, 2014). As
per the insights of Gillier and Piat, 2015, VM is a long-term process that
 quality management; helps in analysing the cost factor and when applied to the notion of
 quality control; sustainability can help in creating a great deal of value. Thus, SC and VM
 quality assurance; and need to be integrated to achieve optimum value. Therefore, for VM and
 quality inspection. SC to achieve absolute value under ‘whole life value’ umbrella, several
objectives must be fulfilled as indicated in Fig. 1.
The relation between business performance and customer satisfaction The main reason to apply VM practices in construction is to obtain
is that of what can be defined as “cause and effect”, and TQM can maximum benefits from the project; in cumulative terms maximisation of
contribute to improving both performance and customer satisfaction as it yields and profits. A project that has alternatives, that costs less and
is premise is customer and performance centric. provides higher outputs resultantly providing maximum benefits and
According to (Douglas et al., 2015), to attain sustainability both quality than a traditional project, benefits could manifest into usage of

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Fig. 1. Conceptual aspects for SC, VM and TQM adapted from (Al yami, 2005).

renewable/new materials, improvements in design, increasing employee performance level and its achievements. More so, sustainability and TQM
participation and enthusiasm in decision-making processes, continuous processes are used as philosophies that develop organisation tools as well
progress, enhancing skill set of employees from team participation, as technical know-how, hence providing guarantee real processes gov-
enhancement in performance, functional consistency and quality (WAO, erning. These technical, organisational tools include zero defects, waste
2014). VM is a systematic approach, which allows its users to assess the reduction, continuous improvement, employee involvement and training
value of a project in a low-cost way. VM applied at any stage of the and life cycle assessment (Galvagno and Dalli, 2014). According to Tiong
project will deliver great value, but it always bests that it should be Kung Leong et al. (2014), TQM can be defined as a process that can be
implemented in the earliest or initial stages of the project to derive included in the process of SC to improve social and construction pro-
maximum benefits. Typically, reductions in costs, improvements in cesses. It also leads to a social and environmental value that is important
quality of processes and construction, identify and isolate any shortage in as construction processes tend to affect the social and general environ-
design. ment. TQM embedded with SC leads to a process of generating benefits
The theoretical concept discussed earlier highlighted several impor- for several stakeholders.
tant factors of integration. These factors are: In the last decade, many organisations across the world have
embraced TQM. According to Aziz and Hafiz (2013), TQM is an inte-
 identification of sustainability issues relevant to the VM workshop; gration of performance improvement techniques with TQM leads to full
 client's commitment to these sustainability issues before the potential achievement. However, the aspect of cross-fertilisation is taken
workshop; into consideration based on the value analysis (VA) that focuses on the
 the role of VM facilitator to raise awareness of sustainability to cost and function of the products (Rupha 2013). VA and TQM share
clients; common areas as far as TQM process is concerned. TQM is made up of
 the support of team members to uphold these issues; and three distinct basic principles namely, customer focus, continuous
 the need to integrate these issues within the process of VM itself. improvement and teamwork. These basic principles are fully addressed if
TQM tools, as well as techniques that are defined by manufacturability
The field studies conducted raised several more issues to deepen our design and Quality Function Deployment (QFD), are blended (Ho et al.,
understanding of the roles of the three groups of players of VM namely 2010). More so, VA is utilised since it serves as a mechanism that makes
clients, facilitators and team members. The studies revealed where sus- TQM principles work together without fail.
tainability issues need to be focused and what are the hurdles that need to Due to quality improvement during the long term, the whole-life cost
be accountable to promote effective integration. From the knowledge of products can be lower. The attention and effort of the customer are
gathered, a structural model of integration is proposed, which integrates drawn through the production of high-quality products that satisfy their
the concept and issues of sustainability within the activities of VM. needs. Zaid et al. (2018) stated that reviewing factors that can reduce
Bateh et al. (2014) define sustainability as “a state of affairs where the costs and improve quality can help in manufacturing high-quality prod-
sum of natural and man-made resources remains at least constant for the ucts and sustainable services. However, cost reduction and quality
foreseeable future, so that the well-being of future generations does not improvement are a process that needs to be supported by the inputs of
decline”. A clarification from Lacoste (2016) indicates that achieving people working with organisations. This requires an active role of
corporate sustainability requires an organisation to consider economic stakeholders. More so, the objective of VA is necessitating equivalent
development intersection, protection of the environment as well as social performance and lower cost without affecting the safety, reliability, de-
responsibility. TQM and sustainability aspects are defined by proactive as gree of the quality, dependability, life and the features as well as effec-
well as preventive approaches used to instil long-term goals and maintain tiveness needed by customers (Ho et al., 2010). TQM is supported by VA

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in three ways. First, it helps an organisation to determine the needs and and social sustainability pillars (environmental, social and economic).
wants of the customers in terms of quality and functional requirements. Fig. 3 explains the research methodology components and procedure for
Secondly, VA helps in the identification as well as prioritisation of targets the research.
to enhance improvement aspect. Finally, VA supports TQM by fostering
teamwork as well as collaboration across organisation departments (Hill 3.3. Focus groups
and Wilkinson, 1995).
Overall, SC, VM and TQM are similar concepts especially regarding In that pursuit, three exploratory focus groups were conducted to help
people involvement, improvement, safety, satisfaction, cost, resource, formulate tactical whole life framework/process diagrams for optimising
energy, process, efficiency, productivity and continues development – the cost of sustainable buildings. The focus groups included twenty-three
which should collectively lead to competitive advantage through participants (i.e. designers, contractors, project managers, consultants,
customer satisfaction. quantity surveyors and site engineers) and covered all the practical
processes and roles of stakeholders in the building lifecycle. The template
3. Methodology for the focus group questions comprised four sections: background in-
formation and agenda; the integration of SC and VM; the integration of
3.1. Research concept SC and TQM; and defining processes of whole-life building cycle for
developing a tactical framework and process diagrams.
Fig. 2 below illustrates the research concept that elaborates the
problem that needs to be solved and the process for solving it. The 3.4. Design and development of tactical framework/process diagrams
problem is by adopting sustainable building (Bs) practices, and for the
building to be LEED-certified, it costs more than traditional building (Bt) After the completion of the focus group interviews, the development
which makes it less attractive for the client to adopt it, neglecting the of the frameworks/process diagrams initiated. The first developed pro-
reduction in the running and maintenance cost of the building on the cess diagram is the planning stage sustainable VM (SVM) represented in
long run. Thus, by certifying the building with LEED, the cost of energy Fig. 7, which was inspired by Zainulabidin’s (2005) VM process diagram
consumption in sustainable buildings (Es) is less than traditional build- but re-engineered according to the focus groups' qualitative data to make
ings (Et). So, this research aims to reduce the capital costs of the (Bs) to it more economically/technologically oriented and relevant to the Jor-
make it similar to (Bt) therefore make adopting it more attractive to danian industry. The aim of the process assesses alternative potential
clients by using (VM) in the planning stage and (TQM) in the execution feasible sustainable and non-sustainable solutions for a building using
stage by adopting tactical sustainable whole-life cost (TSWLC) VM tools and techniques in the planning stage.
framework. The aim of the second developed process diagram - sustainable total
quality management (STQM) represented in Fig. 8, to improve the con-
3.2. Literature review scope struction stage by reducing project waste and cost through the adoption
of TQM - that was inspired by the teachings of Oakland (2014) and the
A comprehensive literature review was conducted in the areas of SC data from focus group sessions.
and VM to find gaps in the knowledge. After discovering the cost barrier, The first two process diagrams are at the operational level; however,
an extensive literature review on the topics of TQM, project management the third developed process diagram is at the strategic level - sustainable
(PM) and whole life costing (WLC) to determine the best tools and value total quality management (SVTQM) represented in Fig. 6, that in-
techniques for reducing the cost of sustainable construction and tegrates: whole-life building value; SC; VM; TQM; aspects of RIBA plan of
increasing its consideration in Jordan - which resulted in the adoption of works; and the opinions from the focus group sessions in an IDEF0 pro-
TQM due to its continual organisational improvement for waste/cost cess diagram. The diagram aims to provide a holistic strategic view of the
reduction and all stakeholders satisfaction which links to the economic lifecycle of a sustainable building and to integrate the previous two

Fig. 2. Research concept.

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Fig. 3. Research methodology.

frameworks under one plan – to increase the value of the proposed interviews, analysis and modification before the framework/process di-
research solution. Lastly, a sustainable tactical whole-life cost (STWLC) agrams reached their maturity level. To note, there was a slight modifi-
framework was developed to locate each process diagram in its con- cation on the protocol of the modified Delphi study as changes were
struction stage and organisational level of use as shown in Fig. 4. applied to the framework/process diagrams after each interview – to
increase the efficiency and accuracy of the sessions.

3.5. Modified Delphi study


3.6. Framework/process diagrams validation
After formulating the framework/process diagrams from the data
collected in the focus groups and literature review; a series of Delphi The aim of the process was to improve and validate the delivered
study interviews were conducted with four academics/research col- framework/process diagrams. The tactical framework validation process
leagues in the School of Architecture, Building and Civil Engineering at comprised a questionnaire to twenty respondents in the Jordanian con-
Loughborough University and four practitioners from the Jordanian struction industry. The questionnaire comprised three sections: the cost
construction industry. The Delphi method is one of the most popular and of LEED-certified buildings and the acceptable margin of increase by the
effective forecasting processes. It is a structured framework of forecasting client above the traditional buildings in Jordan; the clarity and purpose
future trends based on the results provided by the panel of experts. These of the structure for each framework/process diagram; and the robustness
results are provided based on the different rounds of questionnaires given of the process diagrams to the industry and their potential for contribu-
to them. This method is a quantitative approach which aims at generating tion to cost reduction.
unanimity. With the help of this process of conversance which takes
common trends and analysis of exceptions into account, a general 3.7. Data analysis
agreement can be ascertained (Rowe and Wright, 2001).
The study aimed to develop the framework/process diagrams further. Most data collected were qualitative, based on preliminary semi-
The studies’ question sheet comprised ten questions regarding the clarity structured interviews, focus groups and validation interviews. As per
of structure, contents, stages, inputs, outputs, function, people involve- some scholars, Bogdan and Biklen (1982), qualitative data analysis is a
ment and the necessity of each function or stage with any recommen- study which is conducted where the gathered data is further broken
dations on making it leaner (Seker, 2015). The study took two rounds of down to make sense while looking for patterns or hidden trends which

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M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

Fig. 4. Tactical framework.

Fig. 5. Framework/process diagrams key signs.

give information which is vital to any study. For the study, the interviews validate the framework created to test the study. The survey that has
were also recorded, and their transcription was studied in depth to collect been prepared measures ratios, ordinal, nominal as well as dichotomous
that vital information. As per some scholars, Bogdan and Biklen (1982), data obtained through responses received. Additionally, the analysis and
qualitative data analysis is a study which is conducted where the gath- storage of the quantitative validation questionnaires was done by
ered data is further broken down to make sense while looking for pat- Microsoft Excel software.
terns or hidden trends which give information which is vital to any study.
For the study, the interviews were also recorded, and their transcription 4. Research findings
was studied in depth to collect that vital information.
While any quantitative research centers around collecting statistical 4.1. Research gaps and contribution to knowledge
information and cross-checking it across responses of different people for
clarifying an event, for this study, an approach for quantitative analysis There are several barriers that stand in the way of implementing SC
utilizing validation questionnaires has been adopted. That is expected to by clients, designers and construction companies. These barriers include

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M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

Fig. 6. SVTQM process diagram.

the lack of financial incentives, lack of integrated design and affordability accomplish a set of beliefs, ideas and rules that are used as the basis for
(Serpell et al., 2013). Since monetary evaluation often dominates in the making judgments and decisions. (Oxford Dictionary, 2021). The tactical
process of decision making, the lack of financial incentives prevents SC framework as depicted in Fig. 4, provides a basic structure that explains
from being used widely since it decreases economic viability. Shi et al. where each process diagram is used in the construction cycle and on what
(2013) conducted a survey to investigate the status of green construction organisational level is it applied to reduce the extra cost of LEED-certified
in China and the most critical barriers. Their study found that the three buildings toward inspiring “a development that meets the needs of the
most critical barriers are “additional cost”, “incremental time” and present without compromising the ability of future generations to meet
“limited availability of green suppliers and information”. This concludes their own needs” (WCED, 1987). The formulation process came after an
that the extra cost of sustainability is a major problem that needs to be extensive literature review in construction and project management
addressed to increase the consideration of SC. realms. However, key signs for the framework and process diagrams are
Due to limited understanding and the concern about cost, many de- also developed to make the understanding process easier as shown in
velopers are still reluctant to pursue SC (Gharakhani et al., 2013). Dobson Fig. 5 below.
et al. (2013) discussed that although sustainability has become a signif- The framework is divided into the following four components.
icantly important issue concerning the construction industry, the costs of
implementing such strategies is a major practical hindrance. According to A - Strategic process diagram (SVTQM): This process diagram is used
the literature, there is a need to find more cost-effective strategies for the on the strategic level of the organization – to execute the building in
implementation of SC (Dobson et al., 2013). an optimum manner and to forecast its further development.
The novelty of the research lies in the fact that the framework pro- B - Operational planning process diagram (SVM): The process dia-
posed will integrate three important concepts for the construction in- gram intends to increase value in the operational planning stage by
dustry: SC, VM and TQM to reduce buildings' capital costs, thus making it using VM to incorporate sustainable solutions and optimising cost.
more attractive for investors to adopt SC practices. Further justification C - Operational executing process diagram (SVTQM): This process
comes in Sir John Egan’s governmental report “Rethinking Construction diagram is used on the operational level of the organization or project
(1998)” ‘the industry as a whole is under-achieving and called for dra- and it intends to increase the value of the process by reducing wastes
matic improvements’. He proposed that this would be possible ‘if we and hence, optimising the cost of the building through TQM tools and
focus all our efforts on delivering the value that our customers need, and techniques.
if we are prepared to challenge the waste and poor quality arising from D - Building running stage: This stage is included in the framework to
our existing structures and working practices’, that means the costumers feedback to the database on the performance of the used solutions –
have to get the best value (i.e. VM), best quality (i.e. TQM) and challenge for better planning (selection of options) and executing measures in
waste (i.e. SC and TQM). next projects that aim at continues improvement.
E - Documentation: The database is adapted to foster integrated in-
4.2. Tactical framework formation management for better benchmarking and decision-
making process.
It is an action or strategy carefully planned to achieve a specific end to

8
M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

Fig. 7. SVM process diagram.

9
M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

Fig. 8. STQM process diagram.

4.3. Strategic sustainable value total quality management process diagram optimise the whole life cost of sustainable LEED-certified buildings. Its
– SVTQM formulation was inspired by integrating whole life building cycle; SC;
VM; TQM; inputs from practitioners in the Jordanian construction in-
This process diagram, Fig. 6, explains the strategic whole-life cycle dustry; and aspects of RIBA plan of works in IDEF0 frameworks meth-
process of building projects with all its inputs/outputs, controls/mech- odology to formulate a strategic and inclusive management plan.
anisms and where each other process diagram is applied (SVM, STQM) to

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M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

4.4. Operational sustainable VM process diagram - SVM certified buildings and the accepted margin of increase by clients in
Jordan. The section comprises two questions that address the approxi-
The SVM process diagram Fig. 7, was inspired by Noor et al. (2015) mate increase in cost and willingness of clients to pay additional capital
showcasing sustainability concerns among stakeholders from the required to provide a building with green certification and silver certi-
perspective of value management. ZainulAbidin and Pasquire (2007) fication and the results are represented by Fig. 9 and Fig. 10 respectively.
diagram aimed at increasing awareness among stakeholders and not for The questions were framed to get an understanding of the approximate
cost reduction. This research diagram is similar to the previous in stages cost that would increase for certification and how much more would the
flow and some aspects of the stages but edited according to the literature client be willing to pay the extra additional capital.
review and data collected in the focus groups and modified Delphi study When asked about the approximate increase in cost for a building to
to make it more economically oriented by rearranging and renaming be certified green building: 35% of the participants felt that the certifi-
some stages and the addition of documentation/database to find alter- cation would lead to an increase of 10%–15%; 15% respondents felt that
native solutions faster by either using previous knowledge on materials the increase in cost could be anywhere between 10% and 20%; 25% of
and designs from previous projects documented or by searching the web the participants said the increase in cost would be between 15% and
on solutions locally and internationally. Also, the plan has included a 20%; while approximately 30% feeling the cost increase will be any-
stage of checking the aesthetics of the design and the inclusion of where between 20% and 30%. For a building to obtain a silver LEED
checking the safety of the building plus, checking building performance certification: 35% of the participants felt that there would a 15%–20%
with the BIM expert. cost increment; 30% felt it would be between 20% and 25%; whereas the
remaining 35% were in the opinion that the cost would increase by 30%–
4.5. Operational sustainable total quality management process diagram - 40%. The data for the responses has been graphically presented in Fig. 9.
STQM From the results obtained it is evident that majority of the participants
are in the view that the cost increase for a building to be certified would
The operational sustainable total quality management process is lie in the range of 10%–20% while for the building to obtain a silver LEED
presented in Fig. 8. The aim is to reduce the projects wastes/costs and the certification the cost would increase by 15%–25% respectively.
time of construction corrections by using TQM tools and techniques. The After understanding the view of participants regarding what they
aspects that make this plan innovative and state of the art is the inclusion think would be the increase in cost for a building to be certified and silver
of technology in an inspection by using electronic tablets instead of paper LEED-certified. participants were asked about the acceptable added costs
check sheets and linking the data to a documentation database to store that clients would be willing to pay for getting their buildings certified
and analyse the data. The database is also used to find previous solutions and silver LEED-certified. Most of the participants responded by saying
to the problem at hand on-site by benchmarking on previous solutions on that their clients would accept an increase of up to 5% for their buildings
the database in the form of photos and method statements. So, the to be certified while all of them responded that the clients would be able
inspector/supervisor records the problem and try to provide the best to increase their capital cost from 5 to 10% for their building to be silver
solution to the team member who is executing the work. Also, the plan LEED-certified. The responses are graphically represented in Fig. 10
includes training to team members on the problems raised in the project below.
and has an incentives scheme to the team members that have least errors The general response according to the industry professional is that
which foster efficiency and the organisation's culture of quality. there would be a cost increase of 10%–20% for building certification and
Furthermore, tools like control charts are used to quantify the problems the cost further escalates by 30%–40%. When asked about the willing-
to make the training process more precise, plus to quantify the produc- ness of the client to pay for the cost of extra capital required the pro-
tivity of the team members by the number of errors done in the project. fessionals stated that they believe the client would happily pay up to 5%
Fish and bone diagram tool are used to find the root causes of the more for certification and up to 10% for getting a silver LEED
problem and generate solutions by benchmarking on previous solutions certification.
on the database to solve the problem more efficiently and accurately. From participants’ responses, it is evident that the increase in cost
estimated by the industry professionals for green certification and silver
LEED certification is higher than what they expect the client to bear for
4.6. Results from an increase in cost associated with LEED certification in
their buildings comfortably. This difference in the increase in cost and
Jordan
willingness of the customer to pay that cost is huge and might deter the
clients from going towards adopting sustainable construction techniques
This section explores the additional costs associated with LEED-

Fig. 9. Approximate increase in cost for green certification.

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M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

Fig. 10. Acceptable additional capital that the client is willing to pay.

and getting there building certified. project. However, there are other certain key stakeholders that are
A participant to the questionnaire suggested how to address the in- involved in the construction process. Hence it is fair enough to assume
crease in cost so that more clients are inclined towards adopting sus- that the outcomes of the research could have varied if opinions from all
tainable construction techniques and getting the building certified and the stakeholders in a construction project were to be gathered. Even
silver LEED-certified. He commented that: though the current study applied the best possible sample size for the
research, the results could have differed if the sample size and the
“ … I like the logic and the graphics visualisation above. The concern I have
number of interviews for the research were to be increased. However,
is that many clients are reluctant to spend time and effort (money) upfront,
limitations caused due to difficulties in reaching out to interviewees,
on a team of experts, when they have already selected a lead professional
conducting a face-to-face interview, availability of time and resources
to perform the planning and design of their project. The clients have to see
and the geographical dispersion limited the selection of sample size used
their benefits (including financial rewards) and agree to this level of
for this research.
planning effort, or it will be omitted. Investors are usually short term (quick
Fourthly, during the Delphi study data collection stage of the pro-
ROI) thinkers. It would be helpful, if government demand and/or subsidies,
posed STWLC framework, the validation question sheet was presented to
or somehow ward this level of a long-term effort that will be beneficial for
the same sample size as the preliminary interviews. Hence the results
future generations as well as the present population ….”
were constrained to small sample size, and a wider population who
would implement the proposed design were kept out of consideration.
5. Research implications and limitations Also, since the duration of a construction project is very long it was not
possible to practically implement the proposed tactical framework/pro-
The research presented itself with certain limitations that could in- cess diagrams to identify the outcomes in real-life scenario.
fluence the proposed framework. Firstly, the information collected dur- Lastly, in terms of the research being specific to the region of Jordan,
ing research lacked in quantitative and empirical data and focused more the information related to value management practices and sustainable
on qualitative data. The lack of available quantitative data in terms of construction techniques used in Jordan were also limited. The research
practicality, cost-saving and benefits of management practices (SC, VM uses the general practices that are used globally to develop the frame-
and TQM) hindered in generating a better understanding of the appli- work. However, the present research offers much-needed insights
cation of these practices. Additionally, empirically evidence and cross- regarding the construction industry of Jordan and can be assumed as the
comparative analysis would have offered additional information on the basis of further development of research in the related field.
usefulness of VM, SC, and TQM in different countries.
Secondly, the data collection method mainly applied to collecting 6. Discussion
qualitative data was the use of interviews. The interviews conducted
were semi-structured and face to face that might have led to the rise of The formulation of the framework/process diagrams came from the
issues related to the way in which the questions were put across to the literature review, preliminary interviews, focus groups, modified Delphi
interviewee’s influencing their responses. In the case of focus group study and validation questionnaire, which formulated process diagrams
discussions, the opinion of one member could result in forming an to be allocated in a single tactical framework. As it allocates (SVTQM,
opinion of another member thus affecting their answers. Also, during the SVM, STQM) diagrams in their organisational levels - strategic, opera-
interviews, certain interviewees were reluctant to express their view on tional and building operation stages, plus links the whole process to an
the tools used by their organization for sustainable construction prac- integrated information database.
tices. The interviewees were assured about the confidentiality of their A validation questionnaire was conducted to evaluate the clarity,
responses and identity, but they were still hesitant to answer. Hence the functionality and robustness of the framework/process diagrams. The
outcomes of the research are not free from adverse effects of methodol- results indicated that the framework/process diagrams are clear in con-
ogy such as research bias. tents, flow, purpose and role of people. Additionally, they could not be
Thirdly, the sampling population for the research consisted of clients, simplified, or any functions are done in parallel. Further, the participants
construction managers, architects, contractors, designers and a key agreed on the robustness of it and potential effectiveness. However, some
representative from the construction industry since the starting of the participants indicated that the framework/process diagrams are
advanced for the Jordanian construction industry in terms of the

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M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

technological tools used as it wouldn't be easy to integrate it in the sustainability. Besides this, it was also found that shortage of the experts
normal construction process. Nevertheless, the integration of the associated with sustainability also faced the lack of regulations focusing
framework/process diagrams would be easier in the UK/EU because of upon SC or VP concepts for construction and this is the primary reason
the region advancement in construction technology. But other higher that sustainable or value enhancement technologies are lacking the
scaled contractors/project managers indicated that such a system is not guidance from the government, from experts and impacting the clients.
hard to apply but would require initial capital and training to be While discussing the sustainability concepts, the benefits associated
implemented in its right manner. with resource conservation, environmentally friendly construction,
The findings also revealed that there are several opportunities to improved structures with energy efficiency, enhanced attributes and
enhance the framework for reaching a higher potential and value which skills of people as well as the enhanced comfort and health levels of users
will increase its applicability in the industry. Thus, the framework should should be discussed. It helps in reduced wastage of projects at initial and
be done to all areas of construction and not only in buildings; should few operational stages and discusses improved satisfaction of the employees
modifications be done accordingly to suit the project ex — dams, high- so that the level of strain on the local resources could be decreased. The
ways, bridges etc. Additionally, higher value and applicability will be clients always go with the improved VP concepts as well as reduces or
harnessed from, if it would be done in software like expert systems and eliminate unnecessary costs so that improvement in the quality of
the documentation/database function could be done in machine learning outcome and enhance attributes and skills of people involved in a project
and hence artificial intelligence. Furthermore, a new dimension to the could be obtained. It also helps the people associated with VP and SC to
framework would be created, if it would be integrated into Building In- improve their quality of outcomes and helps in VP by offering incentives
formation Management (BIM); the dimension would include project and rewards, giving stakeholders. Hence, governments must implement
management which will enhance furcating and managing the project strategies so that awareness related to SC and VP could be improved.
more comprehensively.
Furthermore, it was found that the notion of SC is quite challenging in 7. Conclusion
the context of the Jordanian construction industry because of the barriers
ordered in descending order as: the increase of capital cost, lack of Overall, this paper aimed to discover the scientific knowledge needed
knowledge and awareness, the culture factor – the use of certain mate- to develop a cost reduction tactical framework for ensuring sustainable
rials, lack of sustainable suppliers, lack of experts in SC area. And the buildings’ whole-life costs are acceptable to clients in Jordan. The
drivers of SC are government legislation, good reputation, managerial research pursued the development of a tactical framework which will
concerns, reduction in running costs due to sustainable systems. encourage clients to adopt sustainability concepts as to reduce its capital
As for VM, the main barriers are lack of experts that have enough cost by management tools and techniques (VM, TQM) and running cost
knowledge on alternative solutions and right management tools and by sustainable systems and materials; hence to focus on whole life costs.
techniques, incremental time, reduction in quality, change of planned This is new framework was developed to promote decisions in projects
client’s specifications. The drivers are: Reduction of cost, better team which allow clients to recognise the whole-life value of investing in
coordination, good reputation through client satisfaction and increase in sustainable design and construction. The novelty of this research is in
the functionality of the building. integrating SC, VM and TQM in a framework/process diagrams to reduce
The main competitive factors for buildings are: cost of the property; the whole life cost of construction and operation of a sustainable
ease and economy in design; quality of the building; location of the building.
building; selection of materials; and time for completion. SC, VM and TQM are different management philosophies in appli-
Moreover, the perception of sustainable buildings in Jordan is nar- cation that have a similar aim in concept – to increase productivity of
rowed to the use of solar panels and LED lights as other sustainable so- employees and organisation; increase efficiency of resources, employees
lutions are still unused due to awareness and high costs. VM should be and organisation – through creativity, quantitative analysis and con-
considered in early stages of the project to reduce the most cost as tinues improvement and technology – to achieve competitive advantage;
changes are costly further in the project. The effectiveness of the study customer satisfaction; and sustainability of organisation.
varies from project to the other as that depends on how the facilitator The framework process diagrams are made for buildings in Jordan,
manages it and the teams’ knowledge on alternative feasible solutions. but they can be used in various project management projects. As indi-
However, the quality of the product should not be compromised. cated in the validation process, the framework/process diagrams are
TQM in Jordan is used frequently in most projects but the main advanced to Jordan as due to their technological aspects; it wouldn't be
barrier for adopting it is the culture of the country as the perception of easy to integrate them to organisations in Jordan. But, the framework/
quality for construction stakeholders is moderate to low which makes the process diagrams could be integrated easier in the more developed region
quality of product low. This problem could be solved partially by using like the USA or EU/UK due to their advancement in the technological
technology, training and beneficial incentives scheme. aspects in construction. In the case of an organisation or a country that
Nevertheless, the additional cost of LEED certification is between 10 would like to adopt the current framework/process diagrams; another
and 20% and for the building to be silver certified is between 20 and validation process is recommended to adjust the variables to the area or
25%. However, clients in Jordan are only willing to pay an extra of the organisation of adoption.
5–10% over the traditional buildings. It is also recommended to conduct a barriers/drivers of SC study in
Most of the participants have agreed that the framework/process most countries or regions; to utilize the drivers for easing the barriers – in
diagrams are clear, robust and would reduce the capital cost. However, hope to save the planet.
there was uncertainty in the easiness of application due to the advanced
technological aspects adopted. Funding
In a comparative study (Karunasena et al., 2016) conducted in Sri
Lanka construction industry, the findings revealed that complications Middle East University (MEU)/Jordan – PhD.
and limitations associated with VP and SC applications could be associ-
ated with the lack of awareness among the clients of VP and SC. While
developing sustainable designs, it is considered that the costing would be Declaration of competing interest
higher than any other regular designs. Furthermore, if the initial costs are
considered, lack of governmental support or the time associated with the The authors declare that they have no known competing financial
initiated stages are taken into consideration, sustainable designers are interests or personal relationships that could have appeared to influence
unable to develop proper proposals as well as spread awareness about the the work reported in this paper.

13
M. Nasereddin, A. Price Developments in the Built Environment 7 (2021) 100049

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