Value Engineering is a continuous review and refinement process of design and specifications, which augments the design efforts from initial concept up to the issuance of the last construction variation. It is normal that the integration of a Value Engineering program will result in a project savings of 5% to 15%, and in a functional design that is constructable within budget.
Utilizing a systematic approach, which identifies and provides the required functions of a project at the lowest possible cost, keeping the design intent unchanged, which will result in the following:
- Savings on construction costs
- Lower life cycle costs
- Applicable codes and regulations
- Improved operational performance
- Reduced maintenance costs
- Identification of risks and mitigation strategies
Scope of Services
Ongoing Regular Value Engineering
At the beginning of a project, a VE analysis is performed to ensure the design consultant operates within overall cost constraints and provides maximum efficiency. The components of this analysis would include:
- Examine potential cost benefits of special studies
- Review progress drawings
- Comment on progress drawings
- Work with A/E to make adjustments to maintain overall budget
- Conduct cost, time and efficiency studies
- Analysis of high cost and problematical elements
- Incorporate operational and conservation issues into the early design process
VE workshop can be performed when the design is at a 35% design development stage.
VE Workshops are conducted using a multi-disciplined team approach, which includes such professionals as architectural, structural, civil, and mechanical, and electrical engineers as deemed relevant for the disciplines being studied. This structure allows for the involvement of the Owner, Design Consultant and Construction Manager. The team approach used for VE studies are comprised of three specific phases:
- A-Pre-Study Preparation Phase
- B-VE Study Phase
- C-Post VE Study Phase
1. A-Pre-Study Preparation Phase
Coordination of the VE effort is vital to a project’s success. It is important that a rapport be developed between the Design Consultant and the Owner’s representatives so that each is aware of his individual responsibility and that the goal of the VE effort is to produce a better project.
2. B-VE Study Phase
Value Engineering is a systematized approach for isolating high cost areas in design and arriving at the best balance between cost, performance and quality. The basic VE job plan consists of the following five stages:
Information Stage :
- Information Gathering all available facts
- Build a cost model
- Select components of the model which have the highest potential cost savings
- Functions Analysis of selected items
- Allocate the current estimated cost to each function and determine the basic function worth
Creative Stage :
Generate a wide variety of ways to provide the basic functions and any required secondary functions by using brainstorming techniques.
Analysis Stage :
Alternative design proposals are evaluated on a life cycle cost basis utilizing cost estimates approaching the same level of detail as the current cost estimate for the existing design.
Development Stage :
- List all alternatives or combinations of alternatives, which have a significant cost savings potential
- Obtain additional information on remaining alternatives such as Life Cycle Cost analysis
- Seek technical assistance from suppliers and specialists
Presentation Stage :
Select the best alternatives to meet the basic functional requirements.
3. C-Post VE Study Phase
Prepare a formal VE report summarizing the results of the study. This report includes the following:
- Executive Summary
- Project Goals and Objectives
- VE Study Methodology and Analysis
- VE Study Recommendations