Citation :

Grace Yoyce Malingkas, "Optimization of Hospital Construction Projects Using Integrated Value Engineering and Life Cycle Cost Analysis for Improving Cost Efficiency: A Case Study of Hermana Lembean Hospital," International Journal of Civil Engineering, vol. 13, no. 8, pp. 579-594, 2026. Crossref, https://doi.org/10.14445/23488352/IJCE-V13I8P133

Abstract

Hospital buildings constitute a large commitment, both financially and operationally, over their service lives. Therefore, the decisions about the construction material compel a consideration of the initial construction costs and the future costs associated with the maintenance and the replacement of the construction. Material selection in construction, however, is characterized by a strong focus on the first costs, bending the economics for the overall construction lifecycle. Value Engineering integrated with Life Cycle Costing presents a more robust framework for comparing construction options. This study examines the architectural component of the Hermana Lembean Hospital project. This study combines VE and LCC for a single framework assessment. The primary data source was the project’s Bill of Quantities, technical specifications and drawings. A Pareto analysis was first used to identify the primary cost elements, and then, the VE job plan was used to develop and assess material options. The selected alternatives were then assessed using a 20-year LCC analysis with an annual discount rate of 8%. The results show that architectural work is the largest cost component, amounting to Rp 2,456,544,915.00 or 38.93% of the total project cost. The implementation of VE reduced the initial cost from Rp 924,197,538.00 to Rp 893,603,302.00, resulting in a cost saving of 3.31%. Meanwhile, the total LCC decreased from Rp 1,239,146,878.51 to Rp 1,138,403,872.00, resulting in a saving of 8.13%. The best alternatives were lightweight brick, ready-mix mortar, Nippon Paint, Nippon Weather bond, and GRC ceiling panels. This study demonstrates that the integration of VE and LCC can produce more efficient decisions than considering only initial costs.

Keywords

Cost Efficiency, Hospital Construction, Life Cycle Cost, Optimization, Value Engineering.

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