Value engineering application in construction project management

Over the past half-century, value engineering VE has emerged as an effective tool to manage time, costs, and quality with an aim to maximize value. It has been shown to be a highly effective approach for evaluating current construction projects. This research aims to provide an in-depth quantitative and qualitative content analysis of the application of VE in construction projects. It is found that new research over the past decade has continuously improved the efficiency and productiveness of VE practices. Current work focuses on integrating VE with other disciplines, applying VE in diverse project domains, assessing VE performance, and developing new VE technologies. This broad review highlights some of the key areas of interest that required future investigation to ensure the continued delivery of value in the ever-changing and evolving construction industry.

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Value engineering application in construction project management

Content:

• A Decade of Value Engineering in Construction Projects
• Value Engineering & Management
• Managing Project Value: Value Engineering and Value Management
• Value engineering: perceived benefits vs potential pitfalls
• Value Engineering and Its Importance in Construction
• Value Engineering in Construction: What Contractors Need to Know
• Value Engineering
• Getting value management right
• Concept of Value Engineering in Construction Industry

A Decade of Value Engineering in Construction Projects

Value engineering is a method that looks at the costs associated with designing, engineering and constructing a building and figuring out how to reduce the costs without compromising on safety, quality and the end needs of the building. Many construction groups are now offering value engineering services when they are putting together building plans for you.

If you are looking to have a building constructed, you may be interested in learning the benefits associated with value engineering.

The biggest benefit associated with value engineering, and the reason more and more people are utilizing this technique, is that it helps to cut costs. Value engineering takes a look at the project and determines what can be cut in order to reduce the expenses associated with the project or what substitutions can be made to make the project more affordable.

In some cases, this may involve substituting an expensive technique with a cheaper alternative. In other cases, it may involve cutting out a middleman in order to reduce costs. Another benefit associated with value engineering is that it often improves the quality of the building. When an engineer is looking at value engineering, they often look at not only decreasing costs, but ways to inexpensively improve the quality of the building.

By cutting out unnecessary expenses, they may have more money available to improve the quality of your building or project. Ultimately, this may help you to afford longer-lasting products, energy-efficient products or other beneficial products that may have been outside of your budget without value engineering.

The final benefit of value engineering is that it looks at the entire project and looks for ways to reduce waste. This may include cutting out projects that you may not necessarily need, cutting out contractors whose jobs can be completed by construction workers you already have on site, or ordering more building materials than what is needed for your project.

Ultimately, this helps to reduce the overall expense associated with the project and ensure that every task and expense is necessary and streamlined. Here at MH Williams Construction Group , we will work with you to provide value engineering services. Our team is committed to helping construct a building that meets your needs, while also sticking to your budget. If you are ready to get started on your commercial building, give us a call. We would love to sit down with you and discuss all of your construction needs and how we can help make them a reality.

Value Engineering Cuts Costs The biggest benefit associated with value engineering, and the reason more and more people are utilizing this technique, is that it helps to cut costs. Value Engineering Improves the Quality of the Building Another benefit associated with value engineering is that it often improves the quality of the building.

Value Engineering Reduces Waste The final benefit of value engineering is that it looks at the entire project and looks for ways to reduce waste.

Value Engineering & Management

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Managing Project Value: Value Engineering and Value Management

The value is a function of cost. Therefore, it can be increased either by improving the function or reducing cost. The maximum value is achieved when the function performs reliably at the lowest cost. A key principle of value engineering that basic functions be preserved and not reduced as a result of improvements in value. Thus Value Engineering VE is a systematic method to improve the "value" of goods, products or services through an examination of the function. Value engineering concepts can be applied to business as well as technical situations and consequently lead management to informed, result oriented decisions. Value engineering is a fantastic process that triggers a complete overhaul of the system alternate design, alternate material, design verification for strength, durability and safety, manufacturing process and testing.

Value engineering: perceived benefits vs potential pitfalls

Skip to search form Skip to main content Skip to account menu. DOI: The V. These methods were pioneered by Lawrence D.

Value Engineering and Its Importance in Construction

Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis. Value engineering is the review of new or existing products during the design phase to reduce costs and increase functionality to increase the value of the product.

Value Engineering in Construction: What Contractors Need to Know

A common response heard when discussing the VE process or the requirements to conduct VE studies is " we do it all the time, but we just don't call it VE! The FHWA defines VE analysis as: A systematic process of review and analysis of a project, during the concept and design phases, by a multidiscipline team of persons not involved in the project, that is conducted to provide recommendations for:. Simply stated, VE is an organized application of common sense and technical knowledge directed at finding and eliminating unnecessary costs in a project. The "systematic application of recognized techniques," referred to in the above definition is embodied in the VE Job Plan. The Job Plan is a systematic and organized plan of action for conducting a VE analysis and assuring the implementation of the recommendations. The methodology utilized for any VE analysis shall follow widely recognized systematic problem-solving procedures that are used throughout private industry and governmental agencies. The Job Plan contains eight phases. The first phase is completed prior to the commencement of the VE analysis, six of which are performed by the VE team, and one that is conducted to "close out" the process.

Value Engineering

The purpose of this study is to optimize costs by analyzing a case study of the Energy Utility Company EUC project in Malaysia and building the main electric distribution station MEDS project specifically. In order to achieve this objective, Value Engineering VE technique as one of the proven tools was selected, and three alternatives were applied. The first alternative was to reduce the room sizes of the building.

Getting value management right

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. 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.

Concept of Value Engineering in Construction Industry

It started at General Electric during World War II in response to skilled labor shortages, a lack of raw materials, and component parts. What they found was that some substitutions not only reduced cost but offered a better final product and even more value than before. There are three main stages of value engineering:. Value engineering can be applied at any stage of the project— even during construction; although this stage can sometimes present the biggest risk. This is just a knee-jerk reaction to going over budget. With the dire need for high-quality cost estimators due to a lack of accurate cost projections, value engineering will become an important skill in the industry. Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds in industries such as agriculture, construction, geospatial and transportation and logistics.

Is value engineering as good as it appears on paper? Read on to find out more about value engineering, the potential benefits of implementing reduced-cost building as well as the pitfalls that can come from using VE as a method of cost-cutting. When spoken about as a concept, value engineering sounds like a smart move for construction companies or cost-consultants.