Understanding the Impact of Value Management in the Environmental Public Service Sector

Public procurement practices in Malta have historically focused on securing the lowest cost, a principle deeply embedded in the Public Procurement Regulations [1]. While aiming for fiscal responsibility, this cost-centric approach often results in unintended consequences such as compromised quality, project delays, and potential cost overruns [2], [3]. This is evidenced in pre-test questionnaire data gathered from stakeholders engaged in public environmental projects. 91% of respondents disagreed that awarding tenders solely on the lowest cost criteria guaranteed good quality. This sentiment underscores the need to move beyond a purely cost-driven model and adopt a more holistic approach that prioritises value for money.

Value Management (VM) emerges as a potential solution to these challenges. VM is a structured and systematic methodology that optimises a project's value throughout its lifecycle [4], [5]. It goes beyond simply minimising costs and seeks to achieve value for money by clearly defining project objectives and rigorously evaluating alternative solutions [6].

This research explores the effectiveness of implementing a VM framework within Malta's public environmental sector, aiming to demonstrate its capacity to enhance project outcomes. By analysing three case studies, this study illustrates how VM principles can be applied to real-world projects, leading to more efficient resource allocation, improved stakeholder satisfaction, and, ultimately, more successful project delivery.

While VMS' benefits have been extensively documented internationally, their application in Malta’s environmental public sector remains underexplored. This study addresses this gap by providing empirical evidence of VMS' effectiveness through three locally grounded case studies.

Although the study is situated within Malta’s environmental public sector context, its findings hold broad relevance for an international audience. Governments worldwide are increasingly challenged to deliver high-quality public services amidst budgetary constraints, growing ecological obligations, and evolving stakeholder expectations. In this context, shifting from cost-centric to value-oriented procurement frameworks has become a global imperative. This research offers practical and empirical insights into how VM can be systematically implemented to improve project outcomes, enhance stakeholder engagement, and support sustainability objectives. This study provides a transferable model applicable across diverse public sector environments by presenting a replicable methodology—combining pre- and post-intervention assessments, stakeholder workshops, and value-based decision tools. Furthermore, it contributes to the global discourse on public sector reform by aligning with international policy frameworks such as the United Nations Sustainable Development Goals and the OECD’s principles of good governance and sustainable procurement. As such, this research addresses a local gap in the literature and offers actionable knowledge for policymakers, practitioners, and researchers engaged in modernising public procurement systems and improving public value delivery worldwide.

A systematic review was conducted following the PRISMA 2020 guidelines to strengthen this study's conceptual foundation and identify gaps in the literature. The review aimed to capture peer-reviewed studies that addressed the application of VM in the public sector, particularly emphasising sustainability, environmental project planning, and governance reforms.

Four major databases—Scopus, EBESCO, Web of Science, and Google Scholar—were searched for publications from January 2020 to December 2024 using the keywords: “Value Management,” “public sector,” “environmental projects,” “sustainability,” and “public procurement.” Inclusion criteria were: (a) relevance to public sector VM applications; (b) focus on sustainability or environmental outcomes; (c) empirical or theoretical studies; and (d) published in English. Excluded were papers focused solely on private sector or non-VM-related procurement models.

The PRISMA flow diagram (Table 1) outlines the identification, screening, eligibility, and inclusion processes.

The review identified a notable increase in scholarship linking VM to sustainability performance in the public sector. For instance, AlShehail et al. [7] demonstrate how Total Quality Management (TQM) practices enhance environmental sustainability outcomes in government services, indicating alignment with VM principles. Marques et al. [8] further highlight a values-oriented approach to public governance, posing VM as a mechanism for integrating stakeholder needs with sustainability goals.

Tommasetti et al. [9] examine sustainability accounting frameworks and argue for public value co-creation, a principle central to VM methodologies. Similarly, Gherardi et al. [10] critique the gap between sustainability reporting and practical public value implementation, reinforcing the need for structured VM processes.

This synthesis reveals a persistent implementation gap in translating VM theory into public sector practice—especially in small-state contexts like Malta. Accordingly, this study provides empirical evidence addressing this gap by evaluating VM implementation in local environmental projects.

VM originated in the United States during World War II, stemming from efforts to identify alternative materials and methods to overcome wartime shortages. Since then, VM has evolved into a widely recognised methodology with applications across diverse industries, from manufacturing and engineering to construction and public services [11].

A significant body of international literature supports the efficacy of VM in improving project management practices [12], [13]. Studies have shown that VM implementation can lead to:

a) Enhanced Efficiency: By systematically analysing project functions and identifying areas for improvement, VM helps eliminate unnecessary costs and streamline processes expected [14].

b) Increased Stakeholder Satisfaction: Through structured stakeholder engagement and a focus on meeting client needs, VM fosters collaboration and leads to greater buy-in from all parties involved [15].

c) More Successful Project Outcomes: By aligning project objectives with client values and prioritising essential needs, VM increases the likelihood of achieving desired results within budget and time constraints [16].

VM adoption often faces challenges despite these benefits, particularly within public sector organisations, and barriers include:

a) Resistance to Change: Entrenched procurement practices and a reluctance to adopt new methodologies can hinder VM integration.

b) Bureaucratic Inertia: Complex approval processes and a risk-averse culture within government agencies can slow VM implementation.

c) Lack of Awareness and Understanding: A limited understanding of VM principles and benefits among stakeholders can lead to scepticism and resistance.

This research sought to address these challenges within Malta's public environmental sector. By examining the implementation of VM in real-world projects and evaluating its impact on project outcomes, the study provided empirical evidence of VM's benefits and offers practical guidance for its wider adoption within the Maltese public service sector.

Furthermore, VM aligns with stakeholder theory by prioritising the involvement and satisfaction of diverse project actors. It contributes to sustainability frameworks through its emphasis on long-term value creation. These theoretical underpinnings suggest that VM is a project delivery tool and a governance mechanism that enhances accountability, transparency, and performance in public sector decision-making.

To investigate the effectiveness of VM, a case study approach was employed, focusing on three environmental projects undertaken by Ambjent Malta (AM), the government department responsible for environmental protection in Malta. The selected projects, representing diverse scopes and complexities, provided a rich context for examining the application of VM principles:

1. L-Għadira s-Safra Bird Observatory: This project aimed to establish a bird observatory in a protected Natura 2000 site, a highly sensitive ecological area. The project involved the construction of a birdwatching hide and educational facilities, requiring careful consideration of environmental impacts and stakeholder needs.

2. Marfa Radar Station Restoration: This project focused on restoring a dilapidated historical radar station to preserve its cultural heritage while creating a new public space. The project involved challenges related to structural integrity, historic preservation, and balancing public access with the protection of the site's unique characteristics.

3. Public Convenience Facility (Buskett): This project focused on designing and constructing a new public convenience facility in Buskett Gardens, a popular recreational area. The project emphasised accessibility for all, hygiene standards, and sustainability, requiring an analysis of user needs, environmental considerations, and cost-effective solutions.

A mixed methods design was employed, incorporating pre-test and post-test questionnaires, stakeholder workshops, and analysis of project documentation. Eleven key stakeholders representing various roles, including project managers, architects, engineers, and representatives from the Environmental Resources Authority, participated in the study.

Data collection involved administering pre-test questionnaires to assess initial perceptions of VM and identify existing procurement practices. Stakeholders then participated in interactive workshops, where VM principles and tools were introduced and applied to the three case study projects. The workshops involved function analysis, brainstorming alternative solutions, and evaluating options based on value criteria. Post-test questionnaires were used to measure changes in stakeholder perspectives and assess the perceived impact of the VM interventions.

To comprehensively understand VM's impact, a mixed-methods research design was employed. This approach combined quantitative data from pre-and post-test questionnaires with qualitative insights gathered through stakeholder workshops and analysis of project documentation.

Eleven key stakeholders in the three case study projects participated in the study. Their roles and expertise span various disciplines, including project management, architecture, engineering, quantity surveying, and environmental regulation, ensuring diverse perspectives.

Data collection involved a multi-stage process:

1. Pre-Test Questionnaires: Structured questionnaires, using a combination of Likert scale, multiple-choice, and open-ended questions, were administered to assess stakeholders' initial perceptions of VM, their familiarity with its principles, and their existing procurement practices. The questionnaire instrument used in this study was designed to gather both quantitative and qualitative data from stakeholders within a Maltese public sector entity. The instrument's structure was informed by five key thematic areas commonly applied in stakeholder and behavioural research: Experience and background, awareness and knowledge, attitudes and beliefs, behavioural patterns, and preferences.

Demographic questions explored the participants’ years of experience with projects, the scale and ownership of those projects (public or private), and their exposure to project-related decision-making. Questions were included to assess both prior knowledge and familiarity with relevant theories or terminology to establish a baseline understanding of the VM concept [17].

Attitudinal insights were collected using a series of Likert scale statements, enabling participants to express degrees of agreement or disagreement. This format was essential to measure subtle differences in perceptions and beliefs regarding VM implementation and public procurement processes [18].

Participants were also invited to reflect on current behaviours and the frequency with which they engaged in certain practices related to project evaluation or stakeholder engagement. Additionally, the survey sought to capture preferences for decision-making approaches, including openness to collaborative frameworks like VM.

To mitigate limitations inherent in closed-question formats, open-ended questions were included. These allowed respondents to elaborate on challenges, share unstructured comments, and provide nuanced reflections on VM's relevance and potential impact in their organisational setting [19].

The Likert scale played a central role in this study’s instrument design. Chosen for its adaptability, ease of interpretation, and suitability for measuring sentiment across single-topic surveys, it enabled the research team to compute central tendencies and infer overall attitudinal trends. As Qualtrics [20] notes, Likert scales offer clarity for respondents while allowing researchers to analyse aggregated results statistically. Nevertheless, the limitations of Likert scales were acknowledged, including the lack of explanation behind specific responses and potential bias from social desirability or question fatigue.

To balance these constraints, Likert items were complemented with open fields, allowing participants to express sentiments that might otherwise be masked in scaled responses. This mixed-format approach enabled a richer understanding of perceptions toward VM and supported a triangulated analysis strategy.

2. Information Session: Stakeholders received a comprehensive overview of VM, covering its definition, history, key principles, benefits, and applications.

3. VM Workshops: A series of interactive workshops were conducted for each case study project. These workshops served as the intervention, introducing stakeholders to VM principles, tools, and techniques. Facilitated by the researcher, the workshops employed a variety of tools, including:

• Issues Analysis: This technique involved brainstorming and identifying key project challenges, risks, and opportunities, fostering a shared understanding among stakeholders.

• Function Analysis: This involved systematically breaking down the project into its core functions, using tools like the Function Analysis System Technique (FAST) diagram to identify areas for improvement and innovation.

• Creative Solution Generation: Stakeholders engaged in brainstorming sessions to develop alternative solutions that addressed the identified issues and optimised project functions.

• Evaluation and Decision-Making: Solutions were evaluated based on value criteria, including cost, quality, sustainability, and stakeholder needs.

Participation was voluntary, and informed consent was obtained from all stakeholders. The study followed ethical research practices per the University of Malta guidelines. All data was anonymised, and confidentiality was maintained throughout.

The sample of 11 stakeholders was selected based on their direct involvement in the three case study projects, ensuring relevant and context-specific insights. While small, the sample was representative of the key decision-makers and technical experts engaged in public environmental project delivery.

4. Post-Test Questionnaires: Following the workshops and a period of project implementation, post-test questionnaires were administered to measure changes in stakeholder perceptions, assess their understanding of VM, and evaluate the perceived impact of the interventions.

Data analysis involved both quantitative and qualitative methods:

Quantitative Analysis: Statistical analysis, including paired t-tests and multiple linear regressions, was performed to assess the significance of changes in stakeholder perceptions and project outcomes before and after the VM interventions.

Qualitative Analysis: Thematic analysis was applied to open-ended questionnaires and workshop discussion responses to identify key themes, patterns, and insights related to stakeholders' experiences and perspectives on VM.

This mixed-methods approach allowed for triangulation of findings, providing a more robust and nuanced understanding of VM's impact within the specific context of Malta's public environmental sector.

This section presents the key findings from the study, organised by data source.

The pre-test questionnaire revealed a prevalent cost-centric mindset among stakeholders, confirming observations from previous studies on public procurement practices. Key findings include:

• Limited VM Awareness and Knowledge: Most respondents indicated limited knowledge or experience with VM principles and methodologies.

• Cost as the Dominant Factor: When asked about the drivers for awarding tenders, the most frequent response was "Lowest Cost," highlighting the emphasis on cost minimisation in existing procurement practices.

• Scepticism Towards VM's Impact on Quality: 91% of respondents disagreed that awarding tenders based solely on the lowest cost ensured good quality, indicating a lack of confidence in cost-centric approaches to achieve desired outcomes.

• Concerns About Fragmentation and Lack of Professionalism: Open-ended responses revealed concerns about fragmented decision-making processes and a perceived need for more excellent professionalism in project management.

The VM workshops served as the intervention, introducing stakeholders to a structured and collaborative approach to project development. Key observations and outcomes from the workshops include:

Aligning Project Objectives with Environmental Sensitivity: The function analysis exercise, facilitated through a FAST diagram, helped stakeholders identify the project's primary function as safeguarding the protected Natura 2000 site.

Developing Environmentally Sensitive Solutions: Through brainstorming and collaborative discussion, stakeholders developed solutions that minimised disturbance to the sensitive Garigue ecosystem. These included creating natural boundaries to guide visitor movement and strategically placing a parking lot to prevent vehicular impact on the habitat.

Enhancing Stakeholder Consensus and Buy-In: The workshop fostered a shared understanding of the project's ecological significance and the need for sensitive design solutions, leading to increased stakeholder consensus and support for the proposed approach.

Balancing Preservation with Public Accessibility: The workshop facilitated a thorough assessment of the radar station's historical and environmental significance, guiding discussions on how best to preserve its heritage while creating a new public space.

Identifying Creative Solutions for Adaptive Reuse: Stakeholders explored alternative solutions for the station's adaptive reuse, considering structural integrity, accessibility, and the potential for educational and recreational activities.

Addressing Challenges Through Collaborative Problem-Solving: The workshop environment encouraged open communication and collaborative problem-solving, enabling stakeholders to work together to overcome challenges related to budget constraints, heritage preservation, and public access.

Prioritising Accessibility, Hygiene, and Sustainability: The workshop facilitated a detailed analysis of user needs, leading to the prioritisation of accessibility for all, high hygiene standards, and sustainable design solutions.

Applying Value Engineering Techniques: Stakeholders employed Value Engineering techniques to identify cost-effective and sustainable solutions for various aspects of the facility, including the substructure, mechanical and electrical systems, apertures, finishes, and sanitary ware.

Ensuring Stakeholder Consensus on Design Choices: Through collaborative discussion and evaluation of alternatives, stakeholders reached a consensus on design choices that met the identified needs while remaining within budget constraints.

The post-test questionnaire revealed a significant shift in stakeholder perceptions and understanding of VM, demonstrating the effectiveness of the interventions:

Increased VM Awareness and Knowledge: Compared to the pre-test, most respondents demonstrated a greater understanding of VM principles and methodologies.

Recognition of VM's Benefits: More respondents agreed that VM contributes to achieving project objectives, improving communication among stakeholders, and optimising resource allocation.

Shift in Focus from Cost to Value: While "Lowest Cost" remained a significant factor in tender awarding, other factors such as quality, sustainability, and stakeholder needs gained greater emphasis in post-test responses.

Positive Feedback on VM Workshops: Stakeholders provided positive feedback on the VM workshops, highlighting their value in promoting collaboration, problem-solving, and a shared understanding of project goals.

Statistical analysis, including paired t-tests and multiple linear regressions, was performed to assess the impact of the VM interventions. The results indicated statistically significant improvements in several areas, including:

The thoroughness of Technical Solution Testing: Post-intervention, stakeholders reported a significant increase in testing for technical solutions, suggesting that the VM framework promoted a more rigorous and analytical approach to decision-making.

Achievement of Project Objectives: While not statistically significant, a positive trend was observed in the perceived achievement of project objectives, indicating that VM interventions contributed to better alignment between project goals and outcomes.

Stakeholder Knowledge of VM: A statistically significant increase in stakeholder knowledge of VM principles and methodologies was observed, demonstrating the effectiveness of the workshops in promoting awareness and understanding.

Thematic analysis of open-ended responses from the questionnaires and workshop discussions revealed several key themes related to the impact of VM as shown in Table 2 hereunder:

The shift from cost to value-oriented thinking observed in this study has significant implications for improving public sector project management in Malta. By embracing VM principles, public organisations can overcome the limitations of cost-centric procurement and enhance project delivery in several ways:

The findings from this research provide compelling evidence that implementing a VM framework can significantly enhance project outcomes within Malta's public environmental sector. The observed shift from a cost-centric to a value-oriented approach, coupled with the statistically significant improvements in technical solution testing and stakeholder knowledge, supports the argument that VM is a valuable tool for public sector project management.

The study identified several key challenges to VM adoption within the Maltese public sector, reflecting observations from international literature. These challenges include:

1. Lack of Awareness and Understanding: The pre-test questionnaire results highlighted a limited understanding of VM principles and benefits among stakeholders, emphasising the need for targeted education and awareness-raising initiatives.

2. Resistance to Change: Entrenched procurement practices, which focus on the lowest cost, can create resistance to adopting new methodologies like VM. This underscores the need for strong leadership support and clear communication of VM's benefits.

3. Bureaucratic Inertia: Complex approval processes and a risk-averse culture within government agencies can hinder the implementation of VM, requiring streamlined procedures and a willingness to embrace innovative approaches.

Based on the study's findings, several recommendations are proposed to promote the successful implementation of VM within Malta's public sector:

1. Develop a National VM Policy and Framework: A comprehensive national policy that clearly articulates the benefits of VM and mandates its application for public sector projects would provide a strong foundation for its widespread adoption.

2. Integrate VM into Public Procurement Regulations: Amending the Public Procurement Regulations to include VM principles and criteria for tender evaluation would incentivise its use and ensure that value considerations are incorporated into decision-making processes.

3. Invest in VM Training and Capacity Building: Targeted training programs designed for public sector employees, particularly those involved in project management and procurement, would equip them with the knowledge and skills necessary to apply VM principles effectively.

4. Develop Case Studies and Success Stories: Documenting and disseminating successful examples of VM applications within the Maltese public service sector would provide tangible evidence of its benefits and encourage wider adoption.

5. Promote Ongoing Monitoring and Evaluation: Continuous monitoring and evaluation of VM implementation would allow for identifying areas for improvement, refining the framework, and measuring its long-term impact on project outcomes.

While this study offers important insights into the practical implementation of VM within Malta's public environmental sector, several limitations must be acknowledged to ensure appropriate interpretation of the findings.

Firstly, the relatively small sample size presents a constraint on the generalisability of the results. Although the participants represented a comprehensive cross-section of key stakeholders directly involved in the selected case studies, the findings cannot be readily extrapolated to the entire Maltese public service sector without caution. However, it is important to note that qualitative saturation was achieved, as the sample comprised the principal decision-makers and technical officers within AM—the government department at the centre of this study. The full inclusion of this population lends credibility to the internal validity of the results within the studied context.

Secondly, the research scope was confined to environmental projects, which—while multidisciplinary—represent only one domain of public sector activity. Future research could explore the applicability and effectiveness of the proposed VM framework across other critical sectors such as healthcare, education, transportation, and public infrastructure. Comparative case studies in these areas would deepen understanding of how VM might perform in settings with different stakeholder dynamics, regulatory environments, and procurement complexities.

Additionally, the reliance on self-reported data through questionnaires may introduce response bias, particularly social desirability effects. Future studies could enhance validity by integrating objective performance indicators or third-party project evaluations. Furthermore, workshop-based interventions may vary in effectiveness depending on facilitation quality, which was not assessed in this study.

Lastly, while stakeholder engagement was high during the intervention, the study assumes a level of openness to collaboration and change that may not be uniformly present across all government departments. Institutional resistance, hierarchical cultures, and varying levels of familiarity with VM principles may influence the replicability of the framework in other public entities.

Despite these limitations, the study lays a strong foundation for further research and supports the argument for embedding VM as a philosophy which promotes collaborative value creation by creating a standardised pre-tendering tool in public procurement processes. Its findings suggest significant potential for the broader adoption of VM, provided future work builds on this groundwork with expanded datasets and a longitudinal, cross-sectoral lens.

This research has demonstrated the transformative potential of VM in shifting Malta's public environmental sector towards a more value-oriented approach. By implementing a structured VM framework, stakeholders gained a deeper understanding of project value, engaged in more collaborative decision-making, and ultimately contributed to better project outcomes.

The findings of this study resonate with international research, confirming the value of VM as a powerful tool for enhancing project management practices. Developing a tailored Standard Operating Procedure provides a practical and adaptable framework for integrating VM into existing procurement processes, paving the way for its wider adoption across various public service sectors in Malta.

If implemented effectively, the recommendations in this paper can contribute to a more efficient, effective, and sustainable public sector, ultimately leading to greater value for money and improved outcomes for the citizens of Malta.

This study demonstrates that embedding VM within public procurement policies can substantially benefit project quality, stakeholder engagement, and resource efficiency. Malta's public administration leaders and policymakers should consider formalising VM practices across departments through national policy, training, and updated procurement guidelines. This shift could significantly improve the cost-effectiveness and sustainability of public investments.

In an international context, implementing VM within public sector projects carries noteworthy social and political implications. From a social perspective, VM promotes inclusive and participatory decision-making processes by actively engaging stakeholders throughout the project lifecycle. This enhances transparency and accountability and contributes to greater public trust in government institutions, particularly in contexts where perceptions of inefficiency or corruption persist. Moreover, by shifting the focus from lowest-cost procurement to value-based outcomes, VM supports more equitable and responsive public service delivery, addressing the diverse needs of communities and promoting long-term social well-being.

Politically, the adoption of VM aligns closely with global standards of good governance, such as the principles outlined by the Organisation for Economic Co-operation and Development (OECD) and the United Nations Sustainable Development Goals (SDGs). Its structured and outcomes-oriented approach has the potential to modernise public procurement practices, reduce wasteful expenditure, and improve the alignment between public investment and policy objectives. However, transitioning to a value-oriented framework may encounter resistance, particularly in political environments where short-term visibility, electoral considerations, or entrenched procurement practices dominate institutional decision-making. As such, the successful diffusion of VM internationally requires technical capacity-building, sustained political commitment, and a willingness to reform established governance and procurement systems.