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fACU LTY 0 F TECH fWLOGY
MASTERS PROGRAMME IN CONSTRUCTION AND PROJECT MANAGEMENT
[i v ;:;, Ii
Kaslurbhai LalbhaiCampus. University Road. Navrangpura. Ahmedabad 380009. Phone: +91 7926302470. Fox: +91 7926302075. ...cept.ac.in email: cpm@cept.ac.in
MIDSEMESTER EXAMINATION
SEMESTER  I( (2008 :". ·2010)
VALUE ENGINEERING
Date: 04.03.09 Marks: 20
Time: 1 hr & 15 minutes Sub Code: MC02VE04
Note: 1. Any missing data can be assumed suitably.
SECTION A
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(1) How much should a company pay for a second hand machine based on the value to the
company, if the machine is to perform the following job on a contract that will last 3' years.
The machine can be obtained for $ 5000; delivery & installation will cost another$ 500.
The machine cost $ 25.000 when new, 10 years ago. A new machine can be obtained for
$ 20,000 installed and will cost $ 8000 a year to operate compared to $ 12,000 for the
used machine. Three years from now the new machine will have a salvage of $ 15,000,
where as it is expected that the second hand machine can still be sold for $ 5000. The
company's minimum required rate of return is 15%. . (06)
(2) A shopping mall can be constructed for Rs.70,OO,000. The financing requires
loan at 12% with equal annual payments.
The gross income for the first year is estimated at Rs.9,00,000 and is expected to
increase at 5% per year thereafter . The operating & maintenance costs and taxes should
average about 45% of the gross income and rise at 5% annual rate. ' The resale value in
30 years is estimated at Rs.1,50,OO,OOO. Find the rate of return on this investment over
30 years life. Assume the increase follows arithmetic gradient. (08) '
Distinguish between the following:
(a) Sinking fund and Capital recovery.
(b) Nominal, Effective & Continuous interest. (3X2=6)
FACULTY OF TECHNOLOGY
MASTERS PROGRAMME INCONSTRUCTIONAND PROJECTMANAGEMENT
.,..... F' [P' !,IJ,; ,'\ \ J \{' IE. IF;i { ~
Kasturt>ha; la lbhai Campus. Universitl Road. NaVl3ngpura. Ahmeda!>ld380 009. Phone: ' 91792630 2470. Fax:+91792630 2075. www.cepla c." email:cpm@ceplac.in
MIDSEMESTER EXAMINATION
SEMESTER  II (2008  2010)
VALUE ENGINEERING
•
Date: 04.03.09 Marks: 20
Ti me : 1 hr & 15 minutes
Sub Code: MC02VE04
SECTION  B
,
Each Question consists of 5 marks each
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Attempt any four:
01 . Applications of Value Engineering in Construction Industry
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02 Incentive provisions in Construction Industry
03 Justify the concept of Worth by giving examples
0 4 FAST Application for Highways.
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05 FAST p p l i ~ ~ n for Power plant.
0 6 Explain JobPlan with example.
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FACULTY OF TECHNOLOGY
MASTERS PROGRAMME IN CONSTRUCTION AND PROJECT MANAGEMENT
 nII i,: !f;;;;.r n :::"" 'c lr\J .. ..'
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Kaslulbhai LaDlhai CamPUS. UniversilyRoad, Na"""'!JllU1ll.Ahmedabad 009. Phone: +91 7925302470. f",, : t91 7926302075. ....w.repl.ac.in emai: q>m@rept.ac.in
END5EMESTER EXAMINATION
SEMESTER  II (2007  2009)
VALUE ENGINEERING
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(2)
Note:
(1)

Date:
Time:
(08)
Marks: 50 Weightage : 25%
Sub Code: MC02VE04
 Due to increasing age and downtime the productivity of a excavator is
expected to .decline geometrically with each passing year. Using the data
below, calculate the price in terms of rupees per cum . that the contractor
must charge to cover the cost of buying & selling the excavator.
Initial cost =Rs.50,OO,OOO
SECTIONA
Approved Interest Tables, Interest formula sheet, LCC tables, valuation tables are
allowed. Any missing data to be suitably assumed.
Two alternative routes are being considered for a section of a state thruway:
a river route & a mountain roiJte. The river route is 20 miles in length & has
predicted first cost of $ 4,750,000 . This is the complete cost of the highway
itself plus such items as landscaping fences , under passes and entrances,
acquisition of land & so on. The annual cost of maintenance and operation
will be $ 2000 a mile.
A major overhaul and surfacing will be required every 10 years at the cost of
$ 850,000.
The mountain route needs to be only 15 miles long but will cost $ 6,375,000
because of the extra expense to establish acceptable grades, to bridge
ravines , and so on. Major overhaul and surfacing will also be required every
10 years but will be only$ 650,000. The annual cost of maintenance will be
$ 2500 a mile, however.
The average speed on either highway will be 50 mph and the average daily
traffic is predicted to be 5000 cars of which 20% will be commercial & rest
non commercial. The cost of time for commercial traffic is estimated at $ 5
an hour & for noneommercial $ 2 an hour. The average cost of operating
traffic on the grades of river route is 25 cents a mile for commercial t raffic
and 6 cents a mile for non commercial, but each is estimated to be 15%
higher on the grades of the mountain route. Both highways are estimated to
have a 30 years life with zero salvage. The cost of capital to the state is 7%.
Compute the benefit cost ratio.
20.04.09
2 hrs.
(06)
Resale price @ EOY8 =Rs.12,OO,OOO
Contractor borrows @i =14%
Production decline @ r =7%
Production for 1 year =2,50,000 cum.
Assume all funds are credited at EOY.
(3) What is the logic b e h i n g ~ . Compute the LCC of the building facility with
the data given below:
Init ial cost of building =$ 75/sq.ft.
Building size =1,10,000 sq/ft,
Interest rate =19%
Life cycle =45 yrs.
Annual Maintenance & Repair Cost = Average $ 8/sq.ft.
Design costs =5% of initial costs
Indirect costs = 12% of initial cost
Major alterations and replacement =$ 15,00,000 every 15 years (10)
Give a schematic representation for cost model of
/;)V
(a) commercial complex and (10)
(b) a pile foundation bridge/ flexible pavement construction.
, (5 For a fully developed and fully tenanted property with no restriction on
"availability of land value in reversion, work out the fair market value by rental
method for the following data :
i. Building is G +5 with one lift.
ii. Area of plot is 600 sq.m.
iii. Gross Annual rent is Rs.4;OO,OOO.
iv. Building is insured (1.5% of grossatlftttaki:mt)..
v. Municipal taxes is Rs.1,00,OOO p.a.
vi. Special outgoings is Rs.20,000 per month
vii. Future life of the building is 30 years. \
viii. Value of open uncucurnbered plot of land in the locality is
Rs.4,OOO/ sq.m. with deferred yield of 8.5%.
Expected yield is at 10% with redemption of capital @ 6%. (08)

An owner purchased a piece of land about 1200 sq.m. and constructed a
two storied residential bunglow some 20 years back. Total life of the building
is 60 years and it has got a total plinth area (both floors) of 1000 sq.m. The
owner now desires to sell the same and has received an offer of Rs. 30
lakhs, with vacant possession or in the altemative he has been offered a
gross monthly rent of Rs. 30,000 for the bunglow and plot together. Advise
the owner whether he should sell the property or give it on rental basis or
retain his property given the following data :
(i) Value of land in the locality for similar plots is Rs.1000/sq.m.
(ii) Present cost of construction (PA rate) is RS.3000 I sq.m.
(iii) " Outgoings @ 40% of the gross rent.
(iv) Annual sinking fund for redemption @ 5% for 60 years.
(v) Interest on capitat@ 9%.
(vi) Amount'of Re.1 p.a. in 20 years @ 9% is RS.51.160. (08)
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FACULTY OF TECHNOLOGY
MASTERS PROGRAMME IN CONSTRUCTION AND PROJECT MANAGEMENT
lFv Lv [I l,
Kaslurtlhai LalbhaiCampus, University Road, Navrangpura,Ahmedabad 3BO 009. Phone: +917926302470. Fax: +91 7926302075, www.cept.ac.in emal: q>m@cepLac.in
ENO5EMESTER EXAMINATION
SEMESTER  II (200$  2009)
VALUE ENGINEERING
•
Date: 20.04.09 Marks: 40
Time: 1 & Yz hr. Sub Code: MC02VE04
•
SECTION B
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Attempt any five: [5 X 8 =40]
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0 .1 How Value Engineering, can be applicable for Port structures list down the major costs
incurred for Port structure while calculating Lee,
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0 .2 Application of V.E. for Airports & Bridges,
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0 .3 "LCC analysis a decision tool" Explain with an example .
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0.4 Value analysis for green building
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0.5 Explain different types of Cost model & give the cost model for waste water treatment
plant.  
0.6 LCC Cost comparison of Rigid pavement & Flexible pavements
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FACULTY OF TECHNOLOGY
MASTERS PROGRAMME IN CONSTRUCTION AND PROJECT MANAGEMENT
~ ~ : ~ :! \{ ~ ~ ~ ~ ~ : . ~ ) [I \f
Kas1llrbhal Lalbhai Campus. UniversityRoad, Navrangpura, Ahmedabad 380009. Phone: +91 792630 2470. Fax: +'31792630 2075. www.cept.ac.in email: cpm@cept.ac.in
ENDSEMESTER EXAMINATION
SEMESTER II (2007  2009)
VALUE ENGINEERING
Date:
Time:
24.04.08
2 hrs. & 15 mins.
2S
Marks: 50 Weightage : .Q%
Sub Code: MC02VE04
SECTION A
Note: Approved Interest Tables, Interest formula sheet, LCC tables, valuation tables are
allowed. Any missing data to be suitably assumed.
(1) A contractor has a contract to construct a 3600 m long tunnel in 30 months.
He is trying to decide whether to do the job with his own forces or
subcontract the job. Calculate the equivalent monthly cost under each
alternatives. His i = 1.75% per month. Production under both alternatives will
be 120 m per month.
Alternative A :
By tunnel boring machine (TBM) & with own forces.
Cost of TMB =Rs. 20 million
Salvage value of machine at end of month 30 = Rs. 4 million
Cost of labour & material = Rs.10,OOOI m for the first 10 months and
increasing geometrically by 0.5% per month @ EOM each IIIQnth thereafter
(i.e. Rs. 10050/m@ EOM 11 & RS.10100.25 @ EOM 12 etc.)
Alternative B :
(7)
Sub contract the work at a cost of Rs. 27000/m of tunnel.
(2) Two alternative routes are being considered for a section of a state thruway:
a river route & a mountain route. The river route is 20 miles in length & has
predicted first cost of $ 4,750,000 . This is the complete cost of the highway
itself plus such items as landscaping fences , under passes and entrances,
acquisition of land & so on. The annual cost of maintenance and operation
will be $ 2000 a mile.
A major overhaul and surfacing will be required every 1°years at the cost of
$ 850,000 . .
The mountain route needs to be only 15 miles long but will cost $ 6,375,000
because of the extra expense to establish acceptable grades, to bridge
ravines, and so on. Major overhaul and surfacing will also be required every
10 years but will be only $ 650,000. The annual cost of maintenance will be
$ 2500 a mile, however.
The average speed on either highway will be 50 mph and the average daily
traffic is predicted to be 5000 cars of which 20% will be commercial & rest
non commercial. The cost of time for commercial traffic is estimated at $ 5
an hour & for noncommercial $ 2 an hour. The average cost of operating
traff ic on the grades of river route is 25 cents a mile for commercial traffic
and 6 cents a mile for non commercial , but each is estimated to be 15%
higher on the grades of the mountain route . Both highways are estimated to
have a 30 years life with zero salvage. The cost of capital to the state is 7%.
Compute the benefit cost ratio. (8)
(3) Due to increasing age and downtime the productivity of a excavator is
expected to decline geometrically with each ·passing year. Using the data
below, calculate the price in terms of rupees per cum. that the contractor
must charge to cover the cost of buying & selling the excavator.
Initial cost =Rs.40,OO,OOO
Resale price @ EOY8 = Rs.9,OO,000
Contractor borrows @ i = 12%
Production decline @ r =6%
Production for 1 year = 2,00,000 cum.
(6)
Assume all funds are credited at EOY.
(4) What is the logic being LCC? Discuss the methodology for computation of
LCC of a building or highway project. (7)
(5) Write short notes on the following (any three) :
(a) Sinking fund &capital recovery
(b) Factor comparison method
(c) FAST technique in value engineering
(d) IT propelled VE in construction.
(e) Cost Benefit analysis of cycling infrastructure. (3X3=9)
(6) For a fully developed and fully tenanted property with no restriction on
avaiiability of land value in reversion, work out the fair market value by rental
method for the following data :
(i) BUI Cling is G + 6 with one lift \.
(ii) Area of plot is 550 sq.m. v
(iii) Annual rent is Rs.300,000 ./
    _ .. _ ._
(iv) Building is insured .,
(v) Municipal taxes is Rs.50,OOO p.a.
(vi) Special outgoings is Rs.10,000 p.m. v
(vii) Future life of the building is 30 years. ./
(viii) Value of open unencumbered plot of land in the locality is Rs. 2500 I
sq.m. with deferred yield of 8.5%.
(ix) Expected yield is at 10% with redemption of capital @ 6%. (7)
(7) An owner purchased a piece of land about 1200 sq .m. and constructed a
two storied residential bunglow some 20 years back. Total life of the building
is 60 years and it has got a total plinth area (both floors) of 1000 sq.m . The
owner now desires to sell the same and has received an offer of Rs. 30
lakhs, with vacant possession or in the alternative he has been offered a
gross monthly rent of Rs. 30,000 for the bunglow and plot together. Advise
the owner whether he should sell the property or give it on rental basis or
retain his property given the following data :
.., ,
OF TECHNOLOGY
°ROGRAMMEIN CONSTRUCTION AND PROJECT MANA3EMENT
t:
IE 11::' J v [F£ II r '::1!
' Ullhal Campus, UnivetSity Road, Navrangpura, Ahmedabad 380 009,Phone: +ill 792630 2470. Fax: +ill 7926302075,www.ceplac.in email: cpm@cepL..,."
ENO8EMESTER EXAMINATION
, SEMESTERII (2007  2009)
VALUE ENGINEERING
Date :
ime :
24.04.08
1 hr. & 15 mins.
Marks: 40 Weightage : 15%
Sub Code: MC02VE04
SECTIONB
Q·1 Attempt any four [20]
(1) Value engineering in Project management explain giving a suitable example
(2) Decision making in value engineering using AHP
(3) Application of value analysis and value engineering in building construction
(4) Differentiate between function oriented and item oriented cost reduction techniques
with an appropriate example
(5) Explain the FAST mechanicsprocess along with its standard symbols and graphics
Q·2 Draw FAST model along with its modification through brainstorming techniques, [20]
(1) For a developer to implement facility management
(2) For inventory control
(3) Implementation of precast yard
(4) Construction of diaphragm wall
CEPT UNIVERSITY
CH. PROGRAMME IN CONSTRUCTION & PROJECT MANAGEMENT
FINAL EXAMINATION
SEMESTER  II (2006  08)
VALUE ENGINEERING
·07
Weightage: 30%
am t o 11.30 am Marks :50
\
Sub Code: MC02VE04
There are two sections in the paper.
A separat e answer script to be usedfor each section.
Appr oved Interest tables, Formula slHJet, Leetables, Valuation tables
are allowed. .
Any missing data to be suitablyassumed.
SEC110NA
h should a company pay for a second hand machine based on the value to the company, if
"'laChi ne is to perform the follOWingjob on a contract that will last 3 years. The machine can be
~ for $ 5,000, delivery & installation wUl cost another $ 500.The machine cost $ 25,000 when
ew . 10 years ago. A new machine can be obtained for $ 20,000 installed and will cost $ 8000 a
ear to operat e compared to $ 12,000 for the used machine. Three years from now the new
~ ~  ! , j ) e will have a salvage of $ 15,000, where as it is expected that the second hand machine can
be sold for $ 5,000. The company's minimum required rate of return is 15%. (06)
is the logic behind life cycle costing (Lee) ? Describe with an example how LCC can be applied
facility . (07)
a schemat ic representation for cost model of a commercial complex and a pile foundation
...,";dge. (07)
=or a fully developed and fully tenanted property with no restriction on availability of land value in
reverslon, work out the fair market value by rental method for the followlnq data :
Building is G +5 with one lift.
Area of plot is 600 sq.m.
_. Gross Annual rent is Rs.4,OO,OOO.
Building is insured (1.5% of gross annual rent)
Municipal taxes is Rs.1,OO;OOO p.a.
.i . Special butgoings is.Rs.20;000 per month
'i. Future life of the building is 30 years.
iii. Value of open uncucumbered plot of land in the locality is Rs.4,OOOj sq.m. with deferred yield of
8.5% .
. . Expected yield is at 10% with redemption of capital @ 6%. (08)
( 5) Two alternative routes are being considered for a section of a state thruway: a river rou e ~
mountain route. The river route is 20 miles in length & has predicted first cost of $ 47,50,000. rt,
is the complete cost of the highway itself plus such items as landscaping fences, under passes  
entrances, acquisition of land & so on. The annual cost of maintenance and operation will be $ 2
a mile.
A major overhaul and surfacing will be required every 10 years at the cost of $ 8,50,000.
The mountain route needs to be only 15 miles long but will cost $ 63,75,000 because of the extra
expense to establish acceptable grades, to bridqe ravines, and so on. Major overhaul and surfaci _
will also be required every 10 years but will be only $ 6,50,000. The annual cost of maintenance v
be $ 2500 a mile, however.
The average speed on either highway will be 50 mph and the average daily traffic is predicted to be
5000 cars of which 20% will be commercial & rest non commercial. The cost of. time for commercial
traffic is estimated at $ 5 an hour & for noncommercial $ 2 an hour. The average cost of operat i
traffic on the grades of river route is25 cents a mile for commercial traffic and 6 cents a mile for n n
commercial, but each !s estimated to be 15% higher on the grades of the mountain route. Both
. highways are estimated to have a 30 years life with zero salvage. The cost of capital to the state .
7%. Compute the benefit cost ratio. (10)
~ Write short notes on (any two) :
a) Application of group support and decision support system t o VE.
b) Application of VE during conception and design stages for tunnelling works.
c) Social BC Analysis as applicable to rural roads.
(6X2=12)
\
CEPT UNIVERSITY
OGRAMMEIN CONSTRUCTION & PROJECT MANAGEMENT
FINAL EXAMINATION
SEMESTER  II (2006  08)
VALUE ENGINEERING
.oz Weightage: 30%
am to 01.00 pm Marks :50
Sub Code: MC02VE04
(
SECTION  B
the importance of different types of Economic Value. (04.)
that you are an SEZ developer. Design infrastructure proposals for Road, Compound Wall
'09 different parameters. Define your parameters. Prepare factored matrix. Suggest best
I (i. e. Out of inference of decision matrix) for road & compound wall. (15)
fast diagram for speciality Retail Mall (i.e. Electronic Megastone "Croma") (OS)
 . are the limitations of cost indices method of valuations? (03)
:;r
t fair market value of the property given the following data :
c. Area of Plot = 496 sq.m. of freehold tenure and no balance potential.
Building of ground and five upper floors with one lift and two water pumps.
Annual rent = Rs.1,20,000. .
Municipal Taxes =Rs.36,000 pa.
Insurance @ 1 % of Gross rent.
Rent collection charges @ S% of Gross rent.
Special outgoings @Rs.700 pm. .
Value of open plot of land in lC'Cality = Rs.2,OOO per sq.m.
Future life of Building =30 years.
Yield expected = 10.5%. (10)
»s: owner wants to dispose off his property yielding a net yearly income of Rs.24,OOO. The said
_....perty has been recently reconstructed by the tenants at their own cost under the authority of the
I body. Under a compromise, the owner has agreed to reduce the vent by Rs.8,OOO p.a. for a
of ten years and thereafter the income of Rs.24,000 p.a. will be maintained in perpetuity.
out the value of the property. (10)