Professional Documents
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Manuscript ID JAABE2204152CM
The impact of the application of value engineering in reducing the costs of engineering
projects
Abstract
This paper aims to reduce the costs of engineering projects by applying the value engineering methodology to a
case study represented in private building project. The paper focuses on studying and analysing the items of the
final finishing works for the training building, and not making any fundamental changes such as re-designing the
architectural and constructional designs. The cost of these items was studied, the main and secondary jobs
were analyzed, the use of alternative materials according to the steps of the value engineering methodology,
and the preparation of the required model report. The results of the study showed that the percentage of
savings using this methodology reached 34% of the items that were replaced, and 9% of the value of the
building. To find out the effect that occurred after replacing some activities and using new alternatives and
proposals on the project implementation time, Primavera P6 program was used to calculate the project
implementation period before and after value engineering was applied to it. The results showed that there was
no significant change in the time, as the project implementation period decreased by 3 days after using this
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methodology, due to the abolition of some unnecessary items and the use of faster and better alternatives. The
study concluded that the value engineering methodology should be conducted in the early stages of project
implementation and urges decision makers to emphasize the use of this methodology in public sector projects
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that cost the state budget large sums that can be saved.
1. Introduction
Institutions and organizations seek to implement their projects according to the allocated budgets and available
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allocations, which requires accurate distribution of these allocations so that they play their role in implementing
the projects according to the planned value, the required quality and on time. This requires continuous study and
good and detailed planning for all items and specifications. Value engineering (VE) is one of the methods used to
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reduce the cost of implementing engineering projects while maintaining the required quality, which is used before
the contract is concluded so that each clause of the contract is benefited from according to the job assigned to it
and without any increase or waste in the allocated financial value. Also, this methodology (value engineering) has
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been used in many countries of the world, at the forefront of which is America, followed by Japan and the
countries of Europe and the Arabian Gulf, and according to the latest statistics, the Arab Gulf countries are in the
third place in terms of the application of value engineering after the United States and Japan. The study of value
engineering has become applied to engineering projects, and to operating and maintenance programs, and to
administrative processes at a rate of 50 to 70 studies annually since its first application in the Gulf region in 1978
AD. More than 700 value engineering studies were conducted, which resulted in an improvement in the quality of
engineering projects simultaneously saving more than 2 billion US dollars [ 1 ] .
We can summarize the definitions of the pioneers of value engineering and its application to the field of building
and construction, as an organized collective effort carried out by a group consisting of various disciplines according
to the type of the project (architectural, construction, electrical, sanitary, etc.) creating alternatives that perform
these jobs and achieve the objectives at the lowest possible costs without violating the quality and the basic
function of the project [ 2 ] . This paper deals with a detailed study of the impact of application of value
engineering in reducing the costs of engineering projects to reduce unnecessary expenses, which we desperately
need in these critical economic conditions that the country is going through.
2. Literature review
Many previous research and studies dealt with value engineering, and the following are the most important ones:
The study of Zainab Youssef (2009 AD) aimed at managing, directing, and analyzing costs in public companies in
Iraq that are concerned with construction industries using value engineering through the analysis and study of the
Journal of Asian Architecture and Building Engineering Page 2 of 26
main and subsidiary activities of the company, with the aim of reducing costs. The researcher used the historical
method to present previous studies and the inductive method to formulate hypotheses. One of the most
important findings of the study is that there are several activities that affect the value of their direct relationship to
production, and a number of other activities that are not influential, because they are specific to other jobs or
departments [3]. Ibrahim Muhammad Qurabi (2012 AD) applied the value engineering methodology to the motor
oil industry as an applied study inside the Zawia refinery. The aim of the study was to find out the reasons why the
company did not reach the target annual production, which is about 100 thousand metric tons. The study relied
on analyzing the data obtained through a questionnaire and using value engineering to reach the target
production and reduce costs. The study concluded that the introduction of computer software in mixing ratios and
quantities of mixed materials contributes to reducing waste and reducing labor [4].
Sharma and others. (2012) dealt with a case study of cost reduction on one of the products of Adarsh Medical
Equipment Company in India. The two researchers applied the value engineering methodology to reach the
required reduction, by putting forward alternatives and suggestions for a type of microscope produced by the
company, where alternative materials were presented to manufacture the microscope handle in order to perform
the required function and at the lowest cost. The study concluded that the use of plastic in the manufacture of the
microscope handle is the most appropriate option, as the cost savings amounted to 18.4%. After the company
used this alternative, it noticed the emergence of several advantages represented in increasing the volume of
production, reducing waste, reducing manpower and reducing the total cost of the product [5].
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The researcher Ahmed Othman (2013 AD) dealt with an analytical study of one of the architectural buildings
patterns for five-star hotels in Egypt with the aim of choosing the best materials through the use of the value
engineering methodology in order to reduce the total cost while maintaining quality, and this collects information,
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analyzes the jobs and determines which is most appropriate for the study. The researcher suggested alternatives
and ideas using the brainstorming method, which was evaluated and presented its advantages and disadvantages
in the light of the study of total cost and quality control. The study found that 38% of the total covered area of the
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hotel is concerned with the guests and it is worth paying attention to its study and analysis, where several
alternatives were used, specifically in the guest rooms (floors, walls, ceilings, skirts) that led to saving up to 37% of
the total cost of the project While maintaining the required quality [ 6 ] .
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The study of Magdy Wael (2014) aimed to identify the effect of using the value engineering approach in reducing
the cost of products for Palestinian public companies. To achieve the objectives of the study, the researcher
designed a questionnaire, which was distributed to the financial managers and heads of accounts in the (11)
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companies, and the sample of the study that responded to the researcher was (9) public shareholding industrial
companies. The results showed that the industrial companies have the elements of applying the target cost
approach, which indicates that the Palestinian industrial companies have the appropriate environment to
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implement the target cost approach, and it was also found that the companies are aware of the concepts,
principles and importance of using the target cost approach in managing their costs and improving profitability,
and that companies use the target cost approach Value engineering to achieve cost reduction in order to reach
the target cost. As the results showed that there are some difficulties that companies may face when adopting the
approach, the most important of which is the high financial cost that exceeds the return of applying the target cost
approach and value engineering [7].
The study of researchers Nayana and Gowrisankar (2015) dealt with the use of value engineering methodology on
residential facilities in India. A questionnaire was distributed to the users of these housing units to find out all the
requirements that can be provided and that fulfill the purpose and purpose of them. After collecting the data, the
researchers conducted a job analysis of all stages and subjects of the study case, where the basic jobs were
referred to as “B” and the secondary jobs were referred to as “S", the ideas were developed and arranged
according to the practical implementation of each stage. After the VE team prepared alternative designs with cost-
of-capital-life-cycle comparisons of the original designs and the proposed alternatives, all recommendations were
listed with a written description illustrated by drawings, including the basic concepts on which they were built,
technical information and a summary of the resulting estimated cost [8].
The researcher Abdullah Mustafa (2016 AD) dealt with value engineering and its role in achieving competitive
advantage in the Giad Industrial Group of Companies in the State of Sudan. The problem of the study was the
neglect of companies and institutions to apply the value engineering method and its role in achieving competitive
advantage. The study used a questionnaire method to identify and investigate the role of value engineering in
reducing costs and achieving competitive advantage in industrial companies. The study concluded that the value
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engineering was not sufficiently applied by the Giad group of companies and that the customers who use the
company's products prefer products with low costs and high quality [9].
Maysoon Tawfiq Moussa (2016 AD) dealt with value engineering and its applications in the construction sector in
Sudan through a practical example in the National Petroleum Company. The study focused on the definition of
value engineering, its concepts and its relationship to quality and cost. The researcher touched on the application
of the value engineering approach to the construction works to design a gas depot in the city of Damer for the
National Petroleum Company as a model. The paper concluded with results and recommendations urging in the
first place to adopt the value engineering approach and add it as a clause in the terms of the Sudanese contracting
contract [10].
Renata Heralova (2016 AD) addressed the possibility of using value engineering in highway projects in the Czech
Republic and the reasons for criticism and challenge in this type of projects. The researcher attributed this to
three reasons, first: that it does not achieve the project's expected objectives, second: the implementation of the
project does not take place on time, and finally, the costs are not in line with the limits of its budget. The
researcher addressed the possibility of using the value engineering methodology in finding ways to improve
solutions to these problems by balancing the cost, schedule and scope by generating innovative alternatives. The
study concluded by recommending that the quality and cost of highways and other projects in the public works
sector can be significantly improved when the value engineering methodology is applied [11].
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Researcher Ehsan and others (2017 AD) published in the Journal of Design and Technology Engineering, a study
aimed at applying the value engineering approach to a major road project in Hamdan Governorate, which connects
the central provinces of Iran with the capital. The researchers put forward new alternatives and paths for the
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road, in which these alternatives and ideas were analyzed in terms of cost, quality and fulfillment of the jobs
required of them. The researchers came to the use of the appropriate route after presenting three alternatives.
The most valuable alternative was identified, which reduces the time traveled for the traveler and saves the total
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cost of the road, including future maintenance work. The size of the savings using this methodology reached
approximately 40% [12]. It is noted on the previous studies that they focused on reducing the total cost in projects
without looking at monitoring and following up the project implementation time after the application of value
engineering, which is of great importance in projects of a service and investment nature, and most of the previous
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studies relied on the questionnaire method without applying the steps of the value engineering methodology.
What distinguishes this study from previous studies is its interest in the time specified for the implementation of
the project through the use of the Primavera program in calculating the time period before and after the
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application of value engineering to know the impact of the changes that occurred to activities as a result of
(replacement) on the time period for the implementation of the project.
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3. Value engineering
It is often called value engineering (breaking the rhythm), and it is a study that aims to improve quality while
reducing costs. In construction projects, it is applied during the presentation of the project idea or after the
completion of the general perception of it. The importance of value engineering was evident because it links
between the main elements of performance efficiency, which is linked to the production process, the time it takes,
quality and cost. In other words, value engineering aims to save a lot of effort, money and time while taking into
account quality. Value engineering is also an analytical study applied to new projects that are intended to choose
the most appropriate alternatives, as well as to projects or products that are implemented, completed and
currently used, and it is intended to look at the possibility of improving them to raise performance rates and
reduce their costs.
Value engineering is defined briefly in the field of building and construction as an organized collective effort
carried out by a group consisting of various disciplines according to the type of project (architectural, construction,
electrical, sanitary, etc.) At the lowest possible costs without compromising the quality and basic jobs of the
project. Value engineering is not required to have one goal, which is to reduce the cost only or work within a
specific budget, as many may think, but the goal in a simplified way is to cancel or modify the works and activities
that can be dispensed with in the project to reduce waste and extravagance in the budget Assigned, while
maintaining the required quality, and monitoring the time specified for completing the project. [ 13 ]
The main purpose of value studies is to improve the value, which means obtaining higher quality at the lowest
possible costs. We find that each person has a special interpretation of the meaning of value and this is affected
by several factors such as place, time, resources, supply and demand, and other factors. Therefore, some confuse
Journal of Asian Architecture and Building Engineering Page 4 of 26
the meaning of value with the meaning of price or cost, and value is often measured on the basis of price only,
although the high price does not necessarily mean an increase in value. The value can be classified into four main
types, which are as follows [1]:
Cost value: It is the total monetary cost of producing something (direct and indirect costs, maintenance, operation
... etc.).
Aesthetic value: It is the aesthetic qualities and features that the beneficiary desires.
Measuring the value: To improve the value of anything, a way and a mechanism must first be found to measure
this value. From the above, we find that the value is based on three main elements: cost, quality, and Job
performance. All these elements must be taken into account when measuring, as shown in equation (1).
The result of this equation is an indicator of the level of the value, the closer the result is to the number one in the
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previous equation, the better and indicates a high value, and the higher the result is from one, this indicates a
weak value and a low level. This is what this study focuses on, as it addresses the weakness of the value and works
to raise it through reducing the cost while monitoring (performance and quality) and raising the price due by
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increasing the functions performed by the element or activity, taking into account this in preparing the designs.
The value of the element or activity lies in its performance of its function efficiently and according to what is
intended. Therefore, the increase in the functions or elements that are not needed and have no role in performing
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the task increases the cost, which means a decrease in the value because the amount paid is higher than the
return and this is what is reflected in the equation (2) In calculating the value index [ 1 ] .
Value has a great relationship and relationship with each of the function, quality and total cost as shown in Figure
(1).
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Figure (1): Correlation between function, quality and total cost [1]
Function: It is defined in the conventional sense as what makes the product work or sold, and in other words
makes the product desirable to the buyer at an appropriate cost or price. If the product cannot fulfill this function,
the buyer will not want it even if it is of low cost. On the other hand, spending a lot of money to increase the
functionality of the product does not increase its value for the target buyer, even if the resulting function is more
than what is required. Hence, the insufficient function is unacceptable, as well as the exaggerated multiplicity of
the functions of the product represents a waste, and therefore it must be determined Accurate product function
and this is the only way to determine the costs associated with the function of the product [14].
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Cost: The cost is defined as spending on the resources necessary to produce the product, service or process, which
is the sum of works and activities, raw materials, periodic and emergency maintenance, and indirect costs required
to produce and maintain the product over its life cycle, in other words over the life cycle. The life of the total cost
of a product or service that you know as life cycle costing (LCC) . [ 15 ]
Quality: Quality is defined as the product's suitability for use, that is, that the commodity or service meets the
needs of the owner or user as defined by Juran (1980 AD), while Jablonsky (1991 AD) defined it as those distinctive
qualities of the product or service.
Through previous applications and experiences, it was noted that the value engineering methodology can be
applied at any stage of the project if a saving in the total cost of the project is obtained, compared to the cost of
the required study. As for the biggest savings that can be achieved, it is when using the value engineering
methodology after the completion of the preliminary studies and designs phase, where the cost of the study drops
significantly as shown in Figure (2).
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The use of the value engineering methodology in the initial stages of the project is not only beneficial to the size of
the savings, but it also increases the ease of making any changes and increases the chance of the owner’s approval
of the use of the recommendations of the final report of the value engineering team.
The stages of applying value engineering in engineering projects are divided into three main stages, as follows:
This stage is considered to be the preparation, processing and development of the practical plan and the main
lines in the light of which the value engineering methodology will be applied, and it is divided into the following:
A- Choosing the target work for the study: In this step, the study’s target work scope is selected and
determined, whether the project is the whole or a stage of its stage, or one of the activities or materials
used, in order to limit the work involved in the study to a specific scope after the emergence of motives
and reasons that require the use of the value engineering methodology as there is a rise in estimates
Finance for the implementation of the project.
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B- Selection of the study team: The selection of the work team to conduct the value engineering study
begins with the selection of the study team leader, who is required to be a specialist in value engineering,
hold a certified value engineering specialist certificate (Certified Value Specialist (CVS), be scientifically
qualified, have experience, and have the capabilities to manage the work team efficiently. As for the rest
of the team members, scientific competence and practical experience are required, both in their field of
specialization. The number of people in the work team depends on the size and nature of the project and
its quality, time and information available for the study, and the type of specialization is determined by
the type of project and what the subject of the study needs [1].
C- Laying out the basics of the study: In this step, a documented and important meeting is held between
the team leader with the owner and the office concerned with preparing the drawings and designs and his
team members to clarify the study’s methodology and its importance in reducing the cost while
maintaining the job role and the quality required of the project. We list for you the most important points
that are listed in this meeting:
1. Presenting and naming the elements of the value engineering team assigned to prepare the study,
mentioning their specializations, experiences, and a brief summary of the work they are entrusted with.
2. Explanation and analysis of the study work program and presenting it as a work plan for the owner and
the party concerned with preparing the drawings and designs for the project.
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3. Setting a timetable for the study plan and setting a date for submitting the final report of the study.
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4. Inventory and specify the documents, documents and laws required in the study, with clarification of their
sources and their spatial and temporal limits.
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This stage is considered the most important stage, as the study is divided into six steps, as shown in the following
[2]:
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A- Data collection and information inventory: In this step, all efforts are directed towards collecting and
collecting all the data related to the project (the subject of the study) from all different and possible
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Contractual and design documents: (contractual regulations, maps and drawings, specifications, design
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Public documents: (administrative regulations, general regulations, standard references (used code),
public services, approved schemes, and others).
Field visits: (visiting the site, meeting the owner and designer, meeting the project manager and
technicians, visiting similar projects, visiting factories, workshops and laboratories concerned with the
project).
B- Job analysis: After the process of collecting inputs, the desired jobs are analyzed and sorted at the lowest
possible cost and classified in the form of a specific map, and they are arranged according to their
importance and implementation cost. This map is called the "functional map". This map determines the
specific functions that each activity performs and determines the benefit and importance of each function
for the project. The collection of functional characteristics requires the need to carry out a set of sub-
analyses as follows:
The job analysis stage is the basis upon which the initial studies of value engineering depend, which
distinguishes them from the methods of solving other problems in the project, which requires the work
of this stage according to hierarchical steps as shown in Figure (3).
Figure (3): The stages of selecting suitable jobs for the study [6]
C- Brainstorming and alternatives: This step is the core of the study, in which all creative ideas are
unleashed and possible alternatives are proposed to perform the primary and secondary
functions and to eliminate or reduce redundant functions in a more effective way in
performance and less in the total cost, through the use of the storm method Brainstorming or
other similar methods, such as using the Pareto rule (20-80), which states that 80% of the
results are caused by 20% of the causes, and this compels us to observe the following controls
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[1]:
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D- Evaluation and scrutiny of ideas: At this stage, evaluation, criticism and arbitration are allowed
after they were prohibited in the previous step, where unnecessary details and illogical ideas
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that are not based on scientific foundations are deleted, by evaluating the ideas and giving them
points. For example, it gives 10 points as a maximum and one point as a minimum, and the level
of ideas that move to the next step and ideas that are excluded are determined, and the
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remaining ideas are categorized and arranged according to their field and activities. Redesign at
this point is usually not economical unless the savings in the project life cycle are large enough
to justify the expense. This stage is called the "constructive thinking stage" where the thinking is
focused to reach a decision to delete unwanted jobs, simplify or reduce them, which leads to a
total reduction in the cost of the project as a result of getting rid of some defects that represent
an additional cost to it [2].
E- Developing alternatives and suggested ideas: It is a step to transform the ideas that were
passed and approved in the previous step into a specific action plan, in which the idea is
developed into an integrated work with clear details after conducting the necessary research
and studies by the study team, each according to his specialization, which contains a
comprehensive practical application. On estimating the final total financial cost and the value of
the savings resulting from the application of this study. The steps for developing alternatives
and ideas can be summarized as follows [2]:
Emphasis on obtaining the information used in these ideas from reliable sources.
Presenting obstacles and difficulties to specialists to find solutions to some ideas that can be used and
benefited from.
Use simulation, experiment and test to confirm the possibility of using these ideas.
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Calculate the cost of new ideas and compare them with the previous situation.
Calculate the cost of operation and maintenance after sales services for the proposed ideas and
alternatives.
F- Presentation of the final report of the study: This report is the final result and summary of the effort
made by the value engineering team during its various stages, which is presented to the decision-maker
for implementation and review of the contents of the study and its results, and briefing him on the efforts
made and the approach that was followed to reach those results. The study report and its solutions,
proposals, ideas and recommendations about design work are reviewed for decision and inclusion in the
next stage of the design stages. The components of the report can be summarized as follows [ 2 ] :
Main data about the project and a general description of its components.
The objectives of the study and the work methodology that was followed.
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Presenting the functional analysis of the project and the activities involved in it.
Review the proposed designs and ideas and highlight their strengths.
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Clarify the financial savings through the cost schedule for all proposals and alternatives.
Develop a program for implementing the alternatives and proposals contained in the study
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List the reasons and rationale for accepting the study by the owner.
It is the stage in which the feasibility of using value engineering on the project schedule is investigated and verified
by monitoring the implementation period of each activity and the effect it had after making changes and using
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alternatives and proposals, such as calculating the critical path, and using modern methods and programs in
project management such as Primavera or MS Project And the overall evaluation of the experience from all
aspects (total cost, required quality, time schedule) [2].
The study case is represented in a private building with a covered area of 6000 square meters, implemented on a
land area of not less than hectares, consisting of 24 classrooms, 6 laboratories, a theatre and toilets in each floor ,
a cafeteria and a special wing for the administration and faculty members, surrounded by some sports fields and
green areas.
The focus in this paper is to apply the value engineering methodology to the items of the final finishing
works of the private building project, and not to make any fundamental changes to it, which is to re-
design the building architecturally and structurally, which takes a long time to do soil tests and prepare
new engineering designs. Since the nature of the value engineering work is collective, and in order for
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the project to be studied in all the different disciplines of the project, a value engineering team has been
formed from several disciplines with experience and competence to provide advice and give the
appropriate opinion when replacing the items concerned with the study.
The process of collecting information consists of providing the following documents and papers:
Contractual and design documents: (project contract, maps and drawings, specifications, design
standards, bills of quantities, estimated cost).
Public documents: Administrative Contract Regulations, and approved indicative price list
Field visits: visit the site, take photographs of the existing situation, interview the owner and
designer, meet the project manager and the supervising engineers. During this step, a large and
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necessary amount of data and information related to the project was collected
B- data analysis
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Before starting to offer alternatives, the data available on the project is analyzed according to the
following:
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on each space becomes clear during any change in the work items to be implemented. Table (1) shows
the distribution of spaces in the building.
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Total 420 7%
public spaces Roofed corridors 1 different 328
stairs 4 30 120
entrances 26 130
Total 578 9.63%
buildings buildings and columns 1107 18.52%
Total Covered Area 6000 100%
Through Table (1), it is clear that the spaces and spaces allocated for classrooms and their corridors have
the largest share of the total covered area of the building, which represents more than 43%, which
makes it more worthy of study and attention, by research and investigation to obtain the most
appropriate alternatives to materials used in the final finishes, which achieve the same function and
required efficiency, but at the lowest cost, and thus the impact of this change is of high value on the
project in general.
After knowing the spaces that represent a large percentage of the building area, and that will have the greatest
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impact when making any change, the turn came to know the most valuable and most expensive items in the
project by analyzing these items to find out the highest value, which will have a significant impact when reducing
and reducing In cost, table (2) shows the cost analysis of contract work items.
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2 concrete works
Ordinary concrete 134,775.14
Reinforced concrete 1,068,022.93
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From Table (2), it is clear that concrete works, paint works, metal works and wood works represent the largest cost
of the total building implementation items by 27.80%, which makes these works and items take precedence and
priority for study and reduction, and their impact will be clear and evident in reducing the cost. It is worth
mentioning that the prices and specifications contained in this analysis were taken from the project assay of the
contract.
In this step, all jobs of the project phases will be analyzed, starting with the project jobs and ending with the
materials used, passing through the method and mechanism of implementation. For example, the aesthetic view
is a major function of the type of ground coverings used at the entrance to the building, while it is secondary in the
rest of the places. Thus, we can determine the importance of the stage to be implemented and the importance of
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the materials used by determining the function entrusted to it. These functions were divided into a main function
and a set of secondary jobs , features and tasks, which can be dispensed with, which we summarize in Table (3).
Step three: brainstorm ideas and alternatives
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This stage aims to put forward and develop all the ideas and proposals that would reduce the total cost of the
project, without excluding any of the items, listing them and writing them down in a clear and organized manner,
through which the advantages and disadvantages can be identified, a comparison and selection of the most
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appropriate and best for these alternatives and ideas, and the table (4) explains with a brief explanation Some
alternatives and ideas.
Table (3): Analysis and identification of the main and secondary functions of the items
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4 Floor and wall cladding Protect floors and walls in wet -Providing a healthy, easy-to-clean
areas environment that is not suitable for
bacteria coexistence
-for acoustic insulation
-for aesthetic view
-Thermal insulation and moisture
insulation
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5 Paints, woodwork, metal works -The aesthetic view of paints -Providing a healthy, easy-to-clean
and insulation -Jackets and protection for environment that is not suitable for
wooden and metal works bacteria coexistence
-Insulate and protect the origin
from moisture
-maintain temperature
6 Electrical and air conditioning -Lighting the building from the -Surveillance and security cameras
works inside -Distributing all the necessary
-building ventilation systems and networks.
-Using advanced methods of
education
-Air conditioning and heating in all
spaces
7 Health works Connecting the water and -Connecting the hot water network
sewage network to the building to the building
-Preparatory first layer of bitumen 1 Replacing polystyrene and geotextile layers with
-A layer of polystyrene for thermal rock wool panels
insulation 2 Cancellation of the layer of concrete tendencies and
-A layer of geotextile fiber for only an increase in the layer of roof tiles
roof insulation
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-Three layers of bitumen coils for 4 Cancellation of the polystyrene and geotextile layer
insulation and the use of polystyrene horde in the ceiling slab
-Concrete layer for water tendencies for thermal insulation with the use of the slopes
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concrete layer
-Granite flooring for stairs and 1 Replacing the granite entrances with Karara
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epoxy coating for laboratory 3 Making the walls of the lab with local
walls ceramics, the thickness of which is not less
-Exterior wall paint with than 2.5 cm
moisture-resistant paints 4 Moisture-resistant TOPCOAT exterior paint
on three sides
Casting reinforced concrete 1 Replacing the concrete structural system
with a stress of 30 Newtons / with the metal structural system
mm 2 and reinforcing steel at a 2 Pouring reinforced concrete with a stress of
rate of 100 kg / m 3 of the 25 Newtons / mm 2 and reinforcing steel at
regular type or the high- a rate of 115 kg / m 3 Hordy of polystyrene,
strength tape, according to the with a thickness of 25 cm, according to the
concrete works
In this step, we study and analyze all the proposed alternatives and ideas, which were mentioned in the previous
step, so that we determine the advantages and disadvantages of each idea, and determine the value index for it
whether it increases or decreases quality and cost, after taking into account its application for the required job
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role. During the presentation of these solutions and proposals to a committee of experts and specialists (the value
engineering team) for careful analysis and evaluation, which concluded in Table (5).
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Available in
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local market
4 Replacing the industrial lower cost Adjustment of
floor in each of the Scratch- floor levels
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give an
not
aesthetic ↓ ↓
agree
appearance
Not
recommended
for
2 Manufacture of lower cost It does not
aluminum bathroom Available in give an
doors instead of local market aesthetic view
↑ ↓ agree
plywood Moisture Editing of
tolerant detailed
graphics
e concrete works
1 Replacing the concrete Availability of iron in highest cost
structural system with the the area It takes time to
metal structural system execution speed adjust graphics and
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↑ ↑ not agree
designs
It needs specialized
companies
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↑ This symbol means an increase in quality or cost when implementing this idea
- This symbol means the stability of the quality level when implementing this idea
↓ This symbol means a decrease in quality or cost when implementing this idea
This step requires obtaining accurate and correct data, as the contractual estimation of the project and the
indicative price list approved by the state were relied on in Resolution No. (216) for the year 2014. From Table (6)
and Figures (4), (5) it is clear the cost difference when using the proposals and alternatives that were approved in
the previous step and the resulting savings.
Table (6): The cost difference when using alternatives and proposals in the value of the contract clauses
Item No
Formula of the clause in Format of the item in
value value percentage of the
the contract the list
d.l d.l item
126,225
insulating layer of
9.01
-
extruded polystyrene
sheets, thickness of 5 cm,
without installation.
By flat meter Supply and Per square meter, % 51
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91,196
specifications for floors of for the corridors of
5.09
24,552
21
37,510
2.10
94,512
53,785
7.02
walls of moisture- and exterior paint (Topcoat)
5
weather-resistant
paints on plastered
surfaces
In cubic meter / Supply per cubic meter Supply % 15
and pour reinforced and pour reinforced
713,961
603,995
2.09
28
breaking stress of 30 N
/ mm 2 and rebar
Total value of previous 34 %
1,203,531 Total new business value 811,038
business
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From the above we conclude that the value of the works that were canceled from the contract is 1,203,531 Saudi
riyal , while the value of the works that will be implemented using alternative ideas will be 811,038 Saudi riyal ,
and thus the achieved savings will be 1,203,531 - 811,038 = 392,493 Saudi riyal , which represents 34% of the
items that have been replaced At 9% of the value of the building. This saving was obtained from only 6 clauses of
the contract, which confirms that studying all clauses of the contract in a broader and more accurate way will be
much greater in cost savings.
This step depends on the results and savings we reached in the previous step, which leads us to prepare a final
report and a summary of the study, and how to present it in an organized manner to the party that has the
decision to modify the value of the project and change its terms. This step goes through three stages: the
presentation and development stage, the initial report preparation stage, and the final report preparation stage.
This stage consists in presenting the alternatives and ideas that have been approved, by setting up a mechanism
for their implementation, development and inclusion in the project timetable, in coordination with all the
competent authorities according to the plan, where the work of the value engineering team is presented to the
project decision-makers from a project manager to a supervisor to its owner or entity. that you will use, in order
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to get a preliminary look at the alternatives that will be used and to offer advice and opinion to all stockholders, in
order to avoid any obstacles, difficulties or desires of the beneficiary that were unseen when collecting project
data. Figure (6) shows the concerned parties and the role of each of them.
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health designer Preparing the health modifications resulting from the implementation of
the idea
electrical designer Preparing the electrical modifications resulting from the implementation
of the idea
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The owner Adoption of new proposed ideas that are ready for implementation
Project Manager Expressing an opinion on the practical side when implementing these
alternatives
maintenance manager Determine the maintenance plan that aligns with the proposed
alternatives
Figure (6): The parties involved in discussing the alternatives presented in the project
Summarize and collect all the notes and ideas that have been agreed upon and that achieve the greatest savings,
while maintaining the quality of the service provided, which will be included in the initial report.
The preliminary report of the study is prepared so that it is detailed and comprehensive of all project data,
including the ideas presented and the resulting savings, which we summarize in the papers shown in tables (7) to
(14).
alternative insulation engineer Choosing the finest types of polystyrene that suit the
design
Executive Director Develop a mechanism to implement the alternative
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Advantages of using this Lowest in total cost, quick in execution, available in the local market, moisture
alternative resistant, abrasion and scratch resistant, longest life
The value of providing 17,748 The percentage of savings from the % 0.4
an alternative value of the building
Responsibility for Architect Edit detailed graphics
implementing the Director Establishing a mechanism to implement the alternative
alternative while the doors are working, and calculating the
duration
Table (11): Fifth paper of the report
Fifth paper of the report
project name Implementation of private building project with a capacity of 24 classrooms
Study place / item Building interior doors / supply and installation of classroom and laboratory doors
the problem The high cost of supplying and installing interior doors
The current design Supply and installation of Swedish wood doors on both sides, including gratings and
before the study paints
Suggested alternatives Use of MDF industrial wood doors
Advantages of using this Lowest in total cost, quick in execution, available in the local market, moisture
alternative resistant, abrasion and scratch resistant, longest life
The value of providing 3,626 SR The percentage of savings from the % 0.1
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The value of providing 727,40 SR The percentage of savings from the % 0.9
an alternative value of the building
insulation engineer Choosing the finest types of polystyrene that suit the
design
Executive Director Develop a mechanism to implement the alternative
during the work of the roof slab and calculate
After conducting the necessary review of the data of the initial report and its approval by the concerned engineers
and the head of the value engineering team, some general theoretical data about value engineering are added,
which we summarize in the following:
Data on the value engineering study team for the project.
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Administrative Centers Development Authority, Supervision and Technical Affairs Department, Valleys
Projects Office, Misurata City Projects.
The structure of dividing the projects of the institution is the hierarchical organization of all the projects in the
institution, as the Primavera program is designed to deal with the comprehensive vision of the institution, and
we limited in this project the introduction of some projects in the city of Misurata only.
The organizational structure of the institution is the hierarchical organization that determines the
administrative structure of those responsible for the project within the scope of the institution, where the
head of the pyramid of the institution is the general manager, and the project manager is directly responsible
for it.
project's data
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In this step, all data and information related to the project were entered as follows: Implementation of a
private building with a capacity of 24 classrooms, project duration 18 months, project start date 01/06/2019,
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All days of the week he worked 8 hours a day except Friday, and he also excluded holidays, which are the days
of special occasions, religious holidays and official holidays of the state.
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The business division structure is a tree diagram for dividing the scope of work for the project, which in our
case is divided into ten works according to the following: earthworks, concrete works, building and plastering
works, cladding works, paint works, metal and wood works, electrical works, air-conditioning works, works
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Activities
An activity is defined as the basic business component of a project and is the smallest level of the WBS. The
activities were entered into the program according to the work items of the project and according to the time
duration of each activity.
The project activities are linked to relationships that determine the order and sequence of their
implementation, which are divided into four parts as follows:
Start to Start (ss) : The two activities start together, and this relationship was used in the activities of electrical
and sanitary equipment.
Finish to Start (fs) : This relationship means that the second activity does not start before the first activity
ends, and this relationship has been used in most of the project’s activities, as the blacksmithing works for the
roof will not start before the completion of the roof carpentry work and so on.
Finish to Finish (ff) : This relationship is used to connect two activities that end at the same time.
Page 23 of 26 Journal of Asian Architecture and Building Engineering
Start to Finish (sf) : This relationship is rare, as it requires the beginning of the first activity in order to end
the second activity.
The critical path was calculated by using the scheduling command in the program, in which the actual working
days were 456 days, ending on 26/11/2020 AD.
All previous inputs that will not be affected are entered using the value engineering methodology.
In this step, all data and information related to the project were entered, but the project duration and end date
were not entered as follows: Implementation of private building project with a capacity of 24 classrooms ,project
start date 01/06/2019.
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All days of the week he worked 8 hours a day, except for Fridays, and holidays, which are religious holidays
and official holidays of the state, are also excluded.
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Journal of Academic Research Vol.15(2020) 246-275 2020 ,15 ﺍﻟﻌﺪﺩ,ﻣﺠﻠﺔ ﺍﻟﺒﺤﻮﺙ ﺍﻷﻛﺎﺩﻳﻤﻴﺔ
__________________________________________________________________________
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The structure of the division of works as in the previous case according to the following: earthworks, concrete
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works, building and plastering works, cladding works, painting works, metal and woodworks, electrical works,
air-conditioning works, sanitary works, and insulation works.
Activities
The activities were entered into the program according to the work items in the project and according to the
time duration of each activity, and the activities that were modified and changed according to the value
engineering methodology were added.
In addition to what was applied in the previous case relationships, some of the relationships that were (FS)
have been modified to become Start to Start (SS) to take advantage of the project’s time, such as the activities
of electrical installations, sanitary installations and external paints, which can start simultaneously.
The critical path was calculated by using the scheduling command in the program, in which the actual working
days were 453 days, which ends on 23/11/2020 AD.
Journal of Asian Architecture and Building Engineering Page 24 of 26
5. Conclusion
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The value engineering methodology was applied to the study case, which is a private building project with a
capacity of 24 classroom From the results of the study, we find that the space of the spaces allocated for the
classrooms and their corridors occupy 43% of the total covered area of the building, which makes it better to study
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and use alternatives. The study concluded that a value of 392,493 Saudi riyal was saved, which is equivalent to
9% of the value of the building through the alternatives used. By studying the project schedule and applying the
Primavera program, it was found that the actual number of work days was 453 days after applying the value
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engineering methodology, while it was 456 days before its application, meaning that the project implementation
period decreased by three days.
We recommend some future studies that the paper did not address, and they are in the field of value engineering,
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- Studying and analyzing the architectural and construction designs of the project, by developing alternatives,
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proposals and changes that reduce the financial budget allocated to the project.
- Expand the preparation of such studies to include all the clauses of the contract and not be limited to the building
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- Preparing future studies on the impact of the application of value engineering in reducing the costs of local
industries
Page 25 of 26 Journal of Asian Architecture and Building Engineering
6. References
[ 1 ] Abdulaziz Al-Yousifi, The Second Forum for Value Engineering, Saudi Arabia, 2001.
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[ 2 ] The official website of the International Foundation for Value Engineering SAVE International.
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[3] Zainab Jabbar Bosef, Cost Reduction Using Value Engineering in Public Companies for Construction Industries,
University of Basra (Iraq / Basra), Master's Thesis, 2010.
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[4] Ibrahim Muhammad Ramadan Qurabi, The Application of Value Engineering to the Engine Oil Industry as an
Applied Study Inside the Zawia Refinery, Master Thesis, Saudi Academy, Libya / Zawiya, 2012.
[ 5 ] Amit Sharma , R.M. Belokar, Proceedings of the World Congress on Engineering and Computer Science, 24-26
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[6] Ahmed Ibrahim Othman, Value Management Approach between Raising Quality and Reducing Costs, Master
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[7] Majdi Wael Al-Kabiji, Application of Value Engineering in Industrial Companies, Master Thesis, Al-Quds
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[8] Nayana Tom v. Gowrisankar, Value Engineering In Residential House International Journal of Civil Engineering
and Technology, Construction, 2015.
[9] Abdullah Ahmed Mustafa, Value Engineering and its Role in Achieving Competitive Advantage in Giad Group of
Companies, Master’s Thesis, University of Khartoum, Sudan, 2016.
[10] Maysoon Tawfiq Al-Sadiq, Value Engineering and its Applications in the Construction Sector in Sudan, Master’s
Thesis, Damer University, Sudan, 2016.
[ 11 ] Renata Schneiderova Heralova , Creative Construction , Czech Technical Conference 2016. University in
Prague ,
[12] Ehsan Mousakhani, Mohammadreza Yavarkhanim, and Soheyla Sohrabi, selecting an appropriate alternative
for a major infrastructure project with regard to value engineering approach, Journal of Engineering Design and
Technology, 15 (3), 2017.
[13] Mary Nabil Sobhi, Value Engineering Systems as Confirming the Effectiveness of Architectural and Urban
Preservation, Master Thesis, Cairo University, Egypt, 2007 AD.
[14] Omar Wasfi Aqili, Introduction to the Integrated Methodology for Total Quality Management, Jordan Amman,
Dar Wael for Publishing and Distribution, 2001.
Journal of Asian Architecture and Building Engineering Page 26 of 26
[15] Suleiman Sufian Majeed Al-Shara, Administrative Accounting in Decision-Making and Controlling, Amman,
Jordan, Dar Al-Sharq, 2002 AD.
[16] Valley Projects Office Archives, Administrative Centers Development Authority, 2019.
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