Enhancing Value and Efficiency in Egyptian Construction Projects: A Framework for Contractor Performance Assessment Using Value Engineering

Abstract

In Egypt's rapidly growing construction sector, the selection of qualified contractors remains a critical challenge for project success. While Egyptian procurement practices traditionally emphasize cost-based selection criteria, this lowest-bid approach has frequently resulted in compromised project quality, performance deficiencies, and schedule overruns. This study introduces a Value Engineering (VE)-based Contractor Performance Assessment Model, addressing key gaps in the evaluation process. The proposed model integrates function-worth analysis in contractor selection and introduces a Value Index (VI) for real-time performance monitoring. The methodology emphasizes a cost-effective and quality-driven approach for ranking contractors, ensuring a more systematic and value-focused selection process. The primary objectives of this research are to develop a scientifically validated VE-based contractor performance assessment framework, apply the Value Index (VI) methodology for comparative analysis of contractor effectiveness, and establish a practical contractor selection and monitoring protocol tailored to Egypt’s construction industry. By adopting the proposed framework, stakeholders can improve contractor accountability, enhance project efficiency, and optimize resource allocation, ultimately contributing to the sustainable advancement of Egypt’s construction sector.

Keywords

• value engineering
• value index
• contractor performance
• egyptian construction sector