Value Engineering (VE) is the systematic process of increasing the VALUE of a project.

Value Engineering often aims at;

Reducing the Costs of the Project (i.e. Both Initial and Life-Cycle Costs)
Improve the Quality of the Project / the function of the project
Shortening / optimizing the schedule of the project
Reduce the Risks involved with the project

Value Engineering first (formally) started during World War II by Lawrence Miles as a result of an effort taken
to find alternative solutions to deal with the shortages of military supplies during the war
It is important to note that Value Engineering must retain and protect the originally intended basic FUNCTION
/ Functional requirement of the project.
VE is function oriented
VE by no mean intends to CUT THE COST DOWN by omitting the design elements (which are recognized to be
essential to the Client). If there is a moment in the VE process where designed elements are intentionally
omitted, those elements must be identified to be unnecessary to deliver the function of the building and
are NOT required by the Client. It has been noted that, occasionally clients require to keep decoratively
designed (mostly architectural) elements which obviously do not serve any contribution to projects function,
just because they require them.
In Middle East / gulf region, VE proves to save around 15 20% of the before VE cost

VE studies usually occur when the estimated cost EXCEEDS the Clients budget. This is true for most of the
private clients. However there is a tendency for government bodies (as Clients) to include mandatory VE
requirements / studies into their project RFPs (Request for Proposal) in order to add value to government
funded projects eventually delivering the benefits to countries economy.
VE studies best deliver the value to the project when implemented during the design phase
Usually; 1st VE study fires when the design reaches 10 30% completion
Large / complex projects might require a 2nd VE study when the design reaches 60% completion

2nd VE
VE

1st VE

50 %
10 - 30%
design
completion

Page |1

60% design
complettion

10 - 30%
design
completion

Its the general acceptance that, for an effective VE process, the VE should be carried out by an independent
third party where there is meeting of fresh minds is preferred in such a process.
VE team is a multi-disciplinary group of professionals who belongs to the related industry, having expert
knowledge on the subject. The expertise contained within the VE team professionals must be able to address
the different construction disciplines (i.e. Arch, Structural, Interior Design, MEP etc.)
VE team members should be dynamic, quick thinking and creative people with innovative ideas
It is rather preferable when the VE team members are not one single company but from several companies
practically. If they are from a single company, the collective efforts of the VE members will bring in the
Design Philosophy of their parent company to the project (intentionally or otherwise) where it might clash
with the Design Philosophy of the formal design consultants who have done the current design.
A VE team shall ideally contain 5 (minimum) to 11 (maximum) professionals. This depends upon the factors
like complexity of the project, types of disciplines estimated to receive value engineering.

VE JOB PLAN is the systematic formal process where actual VE recommendations are generated. This is called
the VE Workshop. VE JOB PLAN comprises 7 discrete phases they have been depicted in a process diagram
below

Information
Phase
All possible
project
informstion is
gathered.
Project
constraints are
identified as
well as the
Project
commitments

Function
Analysis
Primary,
Secondary,
supportive
Functions
expected by
the Client is
identified /
understood

Creative Phase
VE team members
collectively brainstorms in
order to formulate ideas
that will bring in the Cost
Savings, Quality
improvements, Risk
reductions, Schedule
improvements while
retaining the Functions
that were understood.

Evaluation
Phase
Evaluate and
select the
feasible VE
ideas
generated in
the previouse
phase

Development
Phase

Presentation
Phase

Selected feasible
VE Ideas are
turned into fully
supported VE
recommendation
s

Developed VE
recommendati
ons are
presented to
Project Stake
holders

Resolution
Phase
This is where
the presented
VE ideas are
reviewed,
approved or
rejected by
the
Stakeholders /
Client

It is always beneficial if VE recommendations are directly presented to the Client instead of the project design
team in order to minimize the risk of losing information in due course.
Page |2

VE JOB PLAN might take 3 to 5 days duration to get completed depending on the complexity of the project
and the level of elements that need VE

It is always beneficial if VE recommendations are directly presented to the Client instead of the project design
team in order to minimize the risk of losing information in due course.
VE report fully documents the entire VE process. Please see attached example of VE report in the next page.

IT IS

Function Based

Material / Equipment Based

Poor Value Functions

Big Cost Items

Increased Value

Scope Reduction

OPTIMIZES

Overall Design

Local Design

CLARIFIES

Clients Requirements

Nothing

FOCUS
RESULTS

Page |3