What is the best project stage to conduct the value engineering study ?

Value Engineering is a conscious and explicit set of disciplined procedures designed to seek out optimum value for both initial and long-term investment. First utilized in the manufacturing industry during World War II, it has been widely used in the construction industry for many years.

Value Engineering (VE) is not a design/peer review or a cost-cutting exercise. VE is a creative, organized effort, which analyzes the requirements of a project for the purpose of achieving the essential functions at the lowest total costs (capital, staffing, energy, maintenance) over the life of the project. Through a group investigation, using experienced, multi-disciplinary teams, value and economy are improved through the study of alternate design concepts, materials, and methods without compromising the functional and value objectives of the client.

The Society of American Value Engineers (SAVE) was formed in 1959 as a professional society dedicated to the advancement of VE through a better understanding of the principles, methods, and concepts involved. Now known as SAVE International, SAVE has grown to over 1,500 members and currently has over 350 active Certified Value Specialists (CVS) in the U.S. Requirements for registration as a CVS were developed by SAVE at the request of the U.S. General Services Administration in the early 1970's.

VE can be applied at any point in a project, even in construction. However, typically the earlier it is applied the higher the return on the time and effort invested. The three main stages of a project and VE's application are described below.

Planning

At the Planning stage of development, there are additional benefits to be derived from a Value Engineering Workshop. An independent team can:

• Review the program
• Perform a functional analysis of the facility
• Obtain the owner/users definition of value
• Define the key criteria and objectives for the project
• Verify/validate the proposed program
• Review master plan utility options (e.g. Central Utility Plant versus individual systems)
• Offer alternative solutions (square footage needs per function, adjacency solutions, etc.)
• Verify if the budget is adequate for the developed program

The benefits are tremendous.

• Any changes to the program at this stage have very little if any impact on schedule and A/E time and redesign costs.
• The project will be developed with fewer changes, redesigns, and a greater understanding by all parties of what the final function and space allocations will be.
• An independent team can bring a fresh outside view of alternate solutions from other similar projects.

• Construction

  During this phase value engineering is still possible through the use of Value Engineering Change Proposals (VECP). Contractors can be provided monetary incentives to propose solutions that offer enhanced value to the owner, and share in the financial benefits realized. Clearly the owner must consider contractor-generated proposals very carefully, from a life-cycle perspective and a liability perspective. The A/E team must be brought in to the decision-making process to agree to the proposed change as not having any negative impact on the overall design and building function. The evaluation of a VECP is treated similarly to any change order during construction, with issues such as schedule and productivity impacts being considered along with the perceived cost savings generated.

  Conclusion

  In the final analysis, Value Engineering is not only beneficial, but essential because:

  • The functionality of the project is often improved as well as producing tremendous savings, both initial and Life-Cycle Cost.
  • A "second look" at the design produced by the architect and engineers gives the assurance that all reasonable alternatives have been explored.
  • Cost estimates and scope statements are checked thoroughly assuring that nothing has been omitted or underestimated.
  • Assures that the best value will be obtained over the life of the building.