Investigating key factors in the digitalization of value engineering in the Malaysian construction industry

Value Engineering (VE) is widely recognized for enhancing value and minimizing unnecessary costs in construction projects. As the industry moves toward digital transformation, integrating digital tools into the VE process offers new opportunities to improve efficiency, collaboration, and decision-making. This study aims to identify and evaluate the critical factors influencing the digitalization of VE in the Malaysian construction industry and to propose a validated conceptual framework tailored to its specific context. A quantitative approach was employed, using data from 199 Malaysian construction professionals and analyzed through Structural Equation Modelling (SEM). The confirmatory factor analysis revealed high factor loadings (≥ 0.8) for key enablers such as real-time information access, data validation, digital workflow integration, operational scalability, regulatory compliance, decision-support systems, and long-term implementation support, including training and system maintenance. In contrast, lower loadings (< 0.7) for constructs like alternative evaluation and return on investment suggest a declining emphasis on traditional costcentric perspectives. The findings demonstrate that digitalizing VE can lead to enhanced project value, cost efficiency, and process automation within the Malaysian construction sector. The study introduces a comprehensive, phase-based conceptual framework that integrates digital technologies with conventional VE practices, offering actionable insights for project managers, engineers, and policymakers seeking to adopt and scale digital VE in Malaysia.