Value Engineering Techniques and its Application in Construction Projects

This paper reports the findings of research on innovation in the UK construction industry, and in particular, innovations in reinforced concrete building technology. The research project entitled: ‘Assessing Concrete Technology Innovation using Value Engineering’ (ACTIVE) was sponsored by the Engineering and Physical Sciences Research Council (EPSRC) and supported by a range of construction industry trade associations. The main objective of the ACTIVE project was to assess current levels of take-up of innovation in reinforced concrete (RC) buildings, using value engineering (VE) techniques. The research was carried out in two stages – a stakeholder survey and a series of value engineering workshops. The project analysed the ways in which RC frame structures are realised, including a commentary on areas where innovation should be improved. INTRODUCTION INNOVATION IN THE CONSTRUCTION INDUSTRY INNOVATION IN CONCRETE TECHNOLOGY RESEARCH METHODOLOGY ANALYSIS OF THE SURVEY FINDINGS ANALYSIS OF THE VE WORKSHOPS CONCLUSIONS AND RECOMMENDATIONS ACKNOWLEDGEMENTS REFERENCES

The economic efficiency review of design, etc. (hereinafter, Value Engineering (VE)) is the work designed to use the minimum life-cycle cost (LCC) and review the economy and field adjustment feasibility of design contents by function and alternative measure to secure the necessary functions of facilities. To systematically and comprehensively manage the results of the design VE done by ordering agencies and to use such results for performing similar design works, the Ministry of Land, Infrastructure, and Transport (MOLIT) has constructed and is implementing the design VE system based on the Guidelines for the Review of Economy of Design, etc. (hereinafter, VE guidelines). The design VE system, however, is outdated because of the changes that were made in the input and management items when the VE guidelines were amended and because of the inappropriate function improvement since its construction. It currently requires the input of many unnecessary items, and the information is stored chiefly in the form of text, making it inappropriate to utilize the data for designing similar construction projects. This study proposes measures for the update of the design VE system to reflect the amendment of the VE guidelines, to simplify the unnecessary input functions, to boost the search function, and to provide diverse forms of statistics. These proposed update measures are expected to assess the comprehensive analysis of the design VE performance results, to share the design VE information with the ordering agencies and design firms so as to come up with effective alternative measures, to reduce construction project costs, and to improve the quality of construction projects.

The concept of value engineering (VE) is used to optimise the cost, time, quality, and functional performance toward achieving the best value for client money. However, the application of VE in construction industries is limited as there are differences in the use of the VE concept to developing economies, application of cost-oriented procurement systems, and lack of a practically applicable framework. In the local construction context, VE is practiced in an ad hoc manner. Therefore, the current study aimed to develop a framework including a tailored approach to enhance the VE application in the building construction industry. A qualitative approach was adapted to solicit views of twenty-two (22) construction professionals who involved in the six (6) high-rise building construction projects and practiced the VE concept. Views of professionals were synthesised using content analysis and finally developed a framework including a tailored VE approach. The findings conclude that cost and time as the main value criteria which motivate the VE application. Further, VE application in the construction industry is initiated mostly in the construction stages while professionals’ preference is laid on the initial project phases. Consequently, the contractor change proposal was identified as the sound approach to deliver VE since motivations emerge during physical construction. Finally, a tailored VE approach was developed considering concept design, developed design, and construction stages with related VE motivations to enhance the VE application in the Sri Lankan building construction context in a simplified manner.

The design and construction of foundation systems for metro rail projects require effective planning and performing analysis over various alternatives in achieving a suitable cost-effective solution. Often the foundation system is selected based on the Soil Bearing Capacity (SBC) and other onsite constraints are left unconsidered. This results in costly design changes during the execution stages and incurs severe delays in the project. This demands the application of advanced managerial techniques to select costeffective solutions during the design stages of metro rail projects. Value Engineering is one such function-oriented approach used in analyzing the functions of a product or a process and selecting a suitable solution that achieves all the required functions at the lowest possible cost. The application of the value engineering concept in metro rail projects would enable identifying suitable solutions while considering different alternatives over several criteria. Hence, this paper applies value engineering technique for selecting the suitable foundation type for the construction of metro rail projects. A case study of an ongoing metro rail project was considered and three foundation alternative types and nine significant selection criteria were identified. The foundation alternatives were quantitatively analyzed using the weighted evaluation technique. The results indicate that for limited availability of Right of Way (ROW), the foundation with Controlled Low Strength Mortar (CLSM) is highly suitable. In scenarios of limited ROW with less SBC use of pile foundation is identified as a suitable cost-effective foundation type.

due torecent economic situation, contractors have een required to be able to minimize cost and the same time to also maintain the quality of the project. One of the methods that can be apllied as an alternative to achieve it is value engineering. The aim of this studyis to apply this method in a construction project. The construction project ofHousing development in charm tugu rante type 45 residence district blitar Rp 99,792,000.00Value engineering method consist of 4 ( five ) phases. It covers information phase, which contains of identification of the high-cost work and the unnecessary cost ( function analysis ); creative phase; analyzing phase which includes the selection of alternative dealing with the analysis of its benefit and cost, it project life cycle cost and the selection of alternatives by using AHP method; and Recommendation phase.By implementing thismethod,the project cost can be minimized in 5 area of wark,woll work Rp1,902,459,wall strucco work Rp3,941,693,the work of the faundotion stone,soil excavation Rp211,616,excavation work Rp782,012,ceramic work Rp294,775. Thus total reduction cost that be achieved by using this method is upto

Value Engineering (VE) is defined as a systematic application of a recognized approach by a multidisciplined team to identify the functions of a product or a system and to establish a worth for that function. Alternatives are generated through the creative thinking. The needed functions are provided to accomplish purpose of the project, reliability and at the lowest life cycle cost without sacrificing safety, necessary quality and environmental attributes. This paper aims at investigating the effectiveness of VE as an approach that could improve the design process which is considered as an important stage in the project life cycle. Current research has shown that the impact of design on the total cost of the project is estimated as 50%. Hence, this study is concentrated at the design stage. To assess the actual practice during the design process, a questionnaire was designed and sent to 15 respondents. This comprised design firms, engineers as well as clients. The questionnaire main objective was to find out how VE studies are conducted and to gauge the impact on the design of the studied projects. The questions were set to investigate to what extent VE components (function, quality and cost) were applied on those projects under study and their impact on design. The Statistical analysis was conduced using SPSS 10. Descriptive statistics methods were used for organizing and analyzing data. Chi-square tests were used to test the research hypotheses and to make comparisons between observed and expected frequencies. The results obtained from the analysis of the collected data showed that the poor performance in the design process which leads to cost and time overrun and low quality is due to the inefficient methods of conducting the brief with the clients. The tendency of designers to produce expensive designs to show their capabilities without achieving the required functions of the project is also found to be one of the defects in the design process. The Sudanese government and the private sector are recommended to adopt VE. Architects, engineers, and other professionals are recommended to play part in the spread of this technique among their firms. The research recommended further studies to develop and improve VE techniques and tools.

The purpose of this study is to explore the role of target costing in managing product costs while promoting quality specifications that will meet customer requirements. In addition, it aims to develop a target costing module that will simplify implementation of target costing especially in small and medium enterprises (SMEs). Tools of operations management such as quality function deployment (QFD) and value engineering (VE) have been considered and evaluated in terms of their integration into the target costing. In order to investigate the total effect, an implementation of the QFD deployment–target costing process (QFD–TC process) was conducted in a small manufacturing company. Previous studies on target costing were mostly conducted in lead companies. This study focuses on implementation of the QFD–TC process in SMEs. Overall, it was found that the QFD–TC process was an essential technique in managing the costs of both a product and the overall production process. Combining target costing with QFD and VE techniques provides companies with a competitive cost advantage.

Abstract: Value Engineering is a management effort in the cost analysis of a project to get the desired function that is cost efficient but does not alter or reduce the quality, functionality, and benefits of the project. The purpose of value engineering analysis in the 3-house construction project is to know the high cost work items, alternative materials that can be used, as well as calculate the initial cost comparison with the cost after applied the value engineering to know the amount of cost savings.This research uses a comparative analysis method between additional work costs and a cost worth less than 3 (Cost/Worth < 3). In the case study of the construction of this 3-piece home project The data used includes work image data, Unit price analysis list data, and budget cost plan data (RAB).From the analysis of value engineering, known items of work that have high costs are floor work, wall work, utility work, finishing work, ground tank work and pump house outside the building, work around the exterior of the building, and work facilities and environmental infrastructure. Alternative materials that can be a substitute for the initial material in the cost saving effort in the construction project 3 of the House is a brand of romance and brand Noble, closet sitting brand Toto S 516, water faucet brand Classic sus304, shower brand Fiorentino, stop faucet brand Toto, sink complet brand Toto LW 246j, paint wall avitex avian, wool yarn of corn brand, bak garbage fiber size 240 liters, paving block between + pairs (local product of the area is Blang Star). The initial cost of the 3-house project is Rp. 9,013,187,705.74,-after the application of value engineering analysis, the cost of the 3-house project to Rp. 8,711,739,049.68,-compared with the initial cost can be more efficient Rp. 301,448,656.06,-. Keywords: Value Engineering analysis, Cost/Worth, cost saving.

Value engineering (VE) is a systematic approach to optimizing cost efficiency while maintaining or enhancing the quality of construction projects. In the pre-construction phase, VE is critical in balancing budget constraints and project requirements by identifying innovative design, materials, and process solutions. This paper explores the fundamentals of VE, its implementation in pre-construction, and its transformative impact on project outcomes. Modern technologies like Building Information Modeling (BIM) and artificial intelligence (AI) are highlighted for their contributions to improving VE processes. The discussion also addresses challenges, ethical considerations, and best practices to ensure transparency and sustainability in VE applications. VE establishes itself as an indispensable tool in modern construction management by focusing on function-driven solutions and long-term value. Keywords — Value Engineering, Pre-Construction, Cost Control, Building Information Modeling (BIM), Sustainable Construction, Multidisciplinary Collaboration, Project Management, Cost-Quality Balance, Construction Technology, Ethical Considerations.

On comparing with other industries, construction industry requires a huge effort to balance factors such as cost, quality and time. Cost overrun is a major factor that diminishes the value of construction projects. Saving money without compromising quality is an idea that everyone can promote. Value Engineering (VE) is a systematic approach that can be used to attain better balance between cost, quality and function of a product or facility. The main aim of this research is to identify the awareness level of VE in the construction sector and to compare the value generation for the client in terms of money before and after applying VE principles. In this research, a case study of residential building project is considered and focused on selecting best value-adding material for masonry work using VE phases. Questionnaire surveys are used to identify the awareness level about VE in construction sector and the responses are analyzed using SPSS software. To manage cost overrun in residential projects, this study focuses on recommending alternative proposals for building blocks that add value to the work at low cost without compromising the functional quality. Selection of best alternative is based on parameters such as cost, quality and availability, and material ranking using weighted decision matrix. The findings from the study showed that about 4% cost saving is possible by the application of VE in masonry work of residential project and also suitable recommendations are made based on the data collected.

Abstract: Value Engineering (VE) concept does not mean a cost reduction only, but it extends beyond. VE is a powerful problem-solving tool that can reduce costs while maintaining or improving performance and quality requirements. It's a function- oriented, systematic team approach to providing value in a product or service. Construction project as a product or service is generally considered to have good value if this product or service has appropriate performance and cost. The construction product's characteristics differ than those in manufacture in many aspects such as immobility, complexity, durability, cost lines, and high degree of social responsibility. These characteristics are highly affected by the construction technology. Where, adopting these new technologies and working method in proper work environment can maximize the product with a working time reduction by 25% and cost reduction by 20% in average. Slip Form (S.F) is considered one of these common methods of construction. An assessment of the S.F includes productivity, appropriate speed in addition to auxiliary resource combinations. This research aims at create awareness of VE, and demonstrated the benefits gained when it applied to construction projects.

Decision support system for selecting optimal construction bid price

Manufacturers around the globe are competing for the identification of innovative value propositions to survive in the competitive and complex market. This paper is intended to investigate implementation of Value Engineering (VE) technique into the product design concept for necessary changes in design of the humidifier system in order to lower unnecessary costs and to increase quality of the product. Humidifiers are used for ventilation and cooling the air at most houses in cities located in hot and dry areas. Value Engineering as a systematic attempt is used to increase efficiency of the product, and optimize the life cycle cost. This leads to a shift from traditional design towards new efficient designs. For this study, an 8 stage job plan is used for VE job plan. In this article, different components of humidifier were analyzed thoroughly and then numerous suggestions were made at the brainstorming sessions. Function Analysis System Technique (FAST) was also utilized at the first stage. Main findings lead to a conclusion that there were more suggestions at the brain storming session. Main findings lead to a conclusion that best suggestion for improved design of the humidifier is change the material of fan cover from galvanized iron to hard plastic or fiber plastic.

Palm Oil is one of prime materials which very necessary for Indonesia. In the development of palm oil industry the constraint which faced is raw material availability and the economic crisis that attack Indonesia which cause increasing of cost industry so that the salaes price become very expensive . With using alternative raw material namely used palm oil them be made palm oil design to solve this problems. In the designing which comply the consideration of good pal oil planning aspect be use value engineer study. While the criteria parameter of hygienic palm oil which obtained from the questioner area free fatty acid, water content, Iodine number, peroxide number, odor, taste and the color. The research which use value engineer study is throught any phase that is information phase, analyzes phase, creative phase, development phase and presentation phase. This research began with doing the identification of palm oil demand, continued by methodology development in order to measure oil design. By using creative process could be obtained flow rate position, the amount of adsorbent and the best settling time for palm oil alternative that is in the flow rate 70 ml/sec, 4% of adsorbent and the 70 minute for the settling time with free fatty acid value: 0.299. While the best palm oil alternative are palm oil with free fatty acid value = 0.299, water content = 0.31, Iodine number = 40.08, Peroxide number = 3.72, odor and taste = Normal, the color = Normal. The Evalution which done by value engineer study generate the value from alternative palm oil is 1.330 and market palm oil 1.392. Thus, can be conclude thet the value engineer study can be good implemented in the alternative palm oil planning so that alternative palm oil can be produced largely because they have better value that market palm oil and appropriate for little industries.

In this globalization era, many alternative choices of construction materials. The limited funds available make engineers have to think creatively to choose materials used in order to obtain the cost as efficiently as possible. There are many ways to do the cost efficiency of the project, one of them by doing value engineering. The construction design selection is very important to do because it can show the project quality, as well as produce the development with an efficient and optimal cost. The value engineering approach in the construction field is an organized and creative approach aimed at identifying unnecessary costs. These unnecessary costs are costs that do not provide quality or USAbility/functionality. The value engineering application is to construct projects has considerable potential savings from the project budget. This study aims to obtain cost savings made during the design phase and irrigation drainage project implementation. The scope of the study in the present study is the wall project on the DAS irrigation drainage improvement at Cengcengan River in Sukawati, Gianyar. This analysis uses the steps of value engineering plan, i.e., information, creative, analysis, development, and recommendation steps. Whereas, the criteria used to evaluate the components/systems included aspects of cost, quality, implementation time, methods, mobilization, availability, and aesthetics.