ASSIGNMENT

VALUE ENGINEERING IN CONSTRUCTION

Submitted to

Prof. Murali Jagannathan

1. Explain in detail, the following phases of Value Engineering?

Value engineering is the process of delivering the required functions of a component or product at
lowest cost while meeting quality, performance, and reliability specifications.
Essentially, VE is a systematic approach to eliminate any unnecessary cost of an item that does
not add to its required function. It does not simply reduce cost by using cheaper substitutes or lesser
quantities. Instead, its methodology centers on the following questions: What must it do? What
alternative material or method can perform the same function equally well? This is function analysis: the
principal component in VE. Thus, in a construction project, VE involves analyzing the functional
requirements of components, subsystems, and even construction methods.
The other aspects of VE are cost and worth. Total cost is the objective to be minimized in any
value engineering exercise, while worth represents the minimum costs to achieve the required
functions. Worth forms the means for generating alternatives and serves as the baseline against which
various alternatives can be compared. Any reduction in unnecessary cost represents the savings
achieved.
The formal approach for value engineering is often referred to as the job plan. The VE job plan
comprises several phases. Generally, although there are possible variations, the following five form the
essence of the job plan.

a.) Creative Phase:

The Creative (also referred to as Speculation) Phase follows Investigation and is where the power and
the benefits of the VE technique are manifested. The team applies brainstorming techniques to develop
viable alternatives to the way the project is currently designed. Brainstorming forces people to be
creative. The mechanism that produces this phenomenon is called synergism --one idea triggers other
ideas or thoughts through: similarities or like ideas; contiguous or adjoining ideas; contrasting or
opposite ideas; and sound-alikes.
The value study team applies creativity to the functional statements selected from the
previously conducted cost/worth estimates. The team uses the generic format of the function to
speculate on all possible solutions to the problem presented in that functional statement.
The VE study team uses brainstorming to generate a large list of potential solutions to the
problem described by the two-word function, which prepares the team to enter the next phase, when
they are charged with paring down a laundry-list to a manageable few ideas through the feasibility
analysis.

b.) Evaluation Phase:

It represents a confrontation of ideas, a collection of information about the feasibility and cost of those
ideas, and measures the value of the best alternatives.
This analysis or evaluation uses the same techniques of value measurement that have been used
in previous steps. At this point an examination is done about the grade of functional accomplishment
and the economic analysis of those alternatives that offer the higher value. Some of the techniques are
well-known such as Cash-flow analysis and break-even point.
The team involved in Value Analysis needs an objective analysis of the ideas generated through
the innovation phase. The evaluation phase is carried out in two main steps:
 A qualitative analysis of value regarding objectives in design, cost, implementation facilities, etc.
 A quantitative analysis using numerical techniques of value measurement that leads to a few
alternatives of high value that will be analysed in depth.
This process usually involves determining the cost and selects those ideas that can be practically
implemented. This may include work to develop and refine promising ideas into practical and optimum
solutions. During the Evaluation Phase, the advantages and disadvantages of each remaining alternative
are listed. Each advantage and disadvantage is described in general terms. The team can perform a
weighted matrix analysis to determine which alternative is best based upon the relative importance of
each of the desirable criteria which must be addressed. Of course, if the disadvantages are found to far
outweigh the advantages of any alternative, the alternative is dropped from further consideration at this
point.
c.) Development Phase:

This is the phase when a limited number of the ranked alternatives are taken forward for development.
The alternatives are designed in greater detail so that a better appraisal of their cost, performance, and
implementation can be made. The cost should be computed based on life-cycle costing. At this stage, it
may be necessary to conduct a trial or prepare a model or prototype to test the concept before
recommending them to the decision makers.

Once the team selects the best alternatives, they are fully developed through sketches, cost
estimates, validation of test data, and other technical work to determine if any assumptions made
during the study are in fact valid. The Development Phase is the final step before presenting the team's
recommendations to the agency's management. The study team formulates an implementation plan
which describes the process that the agency must follow to implement any recommendations.

d.) Presentation Phase:

The final product of a VE study is the formal VE Report and the presentation of the team's
recommendations. In this phase, the VE team presents their findings to the project decision makers, and
strives to convince them that their ideas should be implemented.
This formal presentation should be brief but thorough, with sufficient time allocated for
discussion and responding to questions. When making the presentation, the study team should exercise
care when presenting estimated cost savings or, in some cases, increased costs associated with
recommendations. Overstating or double counting savings should be avoided. For VE studies taking a
longer time to complete, it is beneficial for the study team to provide progress updates to the
appropriate project management staff.
The VE Report serves as a step-by-step record of the work accomplished during the preceding
phases. The report provides documentation to support the team's recommendations, tracks the team's
deliberations and considerations, and aids in implementation of the recommendations. It can also be a
useful reference tool for future projects and VE studies that must address similar topics.

2. Influence of BIM in Construction life cycle?

Building Information Modeling (BIM) is a digital representation of physical and functional
characteristics of a facility. A BIM is a shared knowledge resource for information about a facility
forming a reliable basis for decisions during its life-cycle defined as existing from earliest conception to
demolition.
BIM offers the opportunity to develop better cost estimates based on actual elements of the
built
asset, better design and construction processes and methods, and a means to engage the client in the
design phase of the built asset.

a.) Design Phase:

The latest developments in BIM technology mean that all of the 3D building objects created in the
design phase can coexist in a single ‘project database’, or ‘virtual building’, that captures everything
known about the building.
In BIM, the model comprises individual built assets, sites or geographic information system (i.e.
precise geometric coordinates coupled with accurate geometry and represented visually), with
attributes that define their detailed description, and relationships, that specify the nature of the context
with other objects. Because all components within a BIM are objectified and have properties and
relationships attached to them, BIM is called a ‘rich’ model.
 In this way BIM offers a variety of information that is generated automatically as the design
model is created. In turn this information can be used for cost estimating, project planning and control,
sustainability and eventually for management of the operation and maintenance of the built asset.

b.) Construction Phase:

The application of BIM to the construction phase is possible because the underlying data of the
BIM contains rich data concerning not just individual elements of the model, but also the
relationships between these elements. For designers and builders this means that amendments
to building designs can be made rapidly, easily, and accurately as all of the related elements of a
particular drawing are adjusted at the same time
There are also advantages for sub-contractors involved in the construction phase. The detailed
designs can facilitate coordination of fabrication or computer controlled manufacturing,
coordination of installation, automated estimated / quoting and accurate off-site manufacturing. All of
these, when coordinated properly, will result in improved coordination, reduced time and less waste.
In addition, BIM could be used to monitor the productivity of a construction process. As BIM
collects dynamic real-time data, the user can measure productivity at any given stage, and use it to
support decision making. A more futuristic outlook on using BIM on the worksite could include
augmented reality through tablets, telephones or equipment like Google glass. The worker would have
at their immediate disposal all information required for executing their job.

c.) Operations Phase:

BIM also has applicability in this phase of the built asset. Since all the specifications for a built
asset, BIM provides a repository of detailed information about the built asset and its components
that can be used after the completion of the built asset for FM. The facility manager has easy and
quick access to important information during the maintenance phase, and moreover can update
this information over time, which can result in better management of the asset. BIM provides a
tool which can retain records of all the updated data of the built asset.
Additionally, if a particular building element were to fail, then the builder or supplier of that
particular asset could be readily identified and contacted to provide a replacement element. This
framework also means that the owner of the built asset can easily change from one facility
manager to another, as only one single BIM file needs to be exchanged. This means that BIM has
the potential to reduce opportunistic behavior from the facility manager and creates incentives
for the facility manager to perform as best as possible.

d.) Decommissioning Phase:

At the end of the built asset life, when it is decommissioned, BIM is useful in supplying the
information of the built asset construction, materials and the whole life history. From the BIM
information about hazardous built asset materials or elements used in the built asset or in repair
work can be identified and these can be extracted and stored appropriately.
The availability and accessibility of such data will increase the speed at which the built asset can
be decommissioned and will also increase the safety of the decommissioning. As some built asset
products are only deemed hazardous many years after construction (e.g. asbestos), having a
detailed database available of the built asset and the composition of its components greatly
assists in the management of risk. BIM increases the overall sustainability of the built asset as it
allows the identification of dangerous materials that require special handling and valuable
materials that can be re-used.
It can also assist possible future needs for dismantling built assets
and reusing the entire built asset or components of a built asset, instead of simply demolishing
the built asset.

References:
 Draft Discussion paper presented on BIM impact future construction industry skills, capabilities and
workforce profile by “Construction Skills Queensland”.
 Valuation Improvement methods by David K.H. Chua, National University of Singapore
