G6 Value Engineering CW

BE4407
Construction Economics III
Coursework
Conducting Value Engineering Workshop for MEP

Services
Student Name(s) Reg. No.
Aberathna P.G.S.A. 192601T

Perera R.A.B.U.N. 192657T
Sampath A.M.P. 192672J
Prasad R.A.W. 192706U
Wanigasinghe H.S.N. 192724X
Module Lecturers: Dr. Thanuja Ramachandra

Dr. Sachie Gunathilake
Dr. Tharusha Ranadewa
Ms. Niwanthika Kurukulasooriya
Mr. Dulshan Costa
Ms. Agana Parameswaran
Date of Assignment : 04.01.2024

Date of Role Play : 08.02.2024
Date of Submission : 22.02.2024
Date of Presentation : 22.02.2024 , 29.02.2024
Department of Building Economics

University of Moratuwa
Course Work Brief and Feedback Form
Degree programme title BScHons in Quantity Surveying
BE4407 - Construction Economics III

Module code and title
Dr. Thanuja Ramachandra, Dr. Sachie Gunathilake, Dr.

Module Lecturer(s) Tharusha Ranadewa, Ms. Niwanthika Kurukulasooriya,
Mr. Dulshan Costa, Ms. Agana Parameswaran
Module Moderator Dr. Menaha Thayaparan
Conducting Value Engineering Workshop for MEP

Course work title
Services
Set Date
Moderated date
Date of assignment 04.01.2024
Date of Role Play 08.02.2024
Date of submission 22.02.2024
Date of presentation 22.02.2024 , 29.02.2024
Student declaration
We confirm that the work submitted for this assignment is my / our own work
Students names / Signatures (Signatures not needed for Moodle Submissions)
Stamp for date receipt of the assignment (if applicable)

Topic
Conducting Value Engineering Workshop for MEP Services
Objectives
1. To enhance students’ theoretical knowledge with respect to the value engineering

application in construction industry.
2. To expose students to the practical application of value engineering in the MEP
(Mechanical, Electrical and Plumbing) services.
3. To develop critical review, analysis, synthesis and report writing skills of students.
4. To promote self-learning and peer learning of students.
Background
Value engineering has enormous benefits for developers when applied to the construction
process. The multi-step process is an essential aspect of the design stage of new
development and is intended to add value. In value engineering, value is defined as a
function divided by cost. Concentrating on maximising project function while lowering
expense generates the most value for clients. The workshop is a key aspect of the value
engineering planning process. The value engineering workshop, held during the project's
design phase, involves the project team in reviewing the proposed project, performing a
functional analysis of the facility, obtaining the owner's definition of value, defining key
criteria for the project, and offering alternative solutions for the project.
Tasks
Task 1
Students are required to select one system from given list below and carry out an extensive
literature review to identify the applications of value engineering to MEP services in
construction projects.
▪ Electrical System
▪ Water Distribution System
▪ Water Drainage System
▪ Mechanical System
You are encouraged to address the following:
• Type of Building
• Purpose of Value Engineering
• Value Engineering Criteria Considered
• Value Engineering Proposals Considered
• Techniques Used for Functional Analysis
Task 2
Using the knowledge gained from Task 1, students are required to carry out a value
engineering workshop for the selected system.
Adhering to the standard value engineering job plan following all three stages (pre-
workshop, workshop and post-workshop), you must follow the below guidelines and
prepare a report based on the results of each stage.
• Pre-Workshop (selecting the team, reviewing the scope of work, determining

cost-saving ratios and preparing the time frame and work plan for the workshop)
• Workshop (execution of activities related to all six phases: information phase,
function analysis, creativity phase, evaluation phase, development phase and
reporting and recommendation phase.)
• Post Workshop (plan for execution and proposal for following up activities)
Interim Evaluation-Role Play
A role play will be conducted demonstrating one of the days of the workshop. The group
members are expected to perform as VE team members and act accordingly, covering
the tasks planned for that particular day. Students will be assessed individually during
the workshop. At the end of the day, students shall submit a draft (2-3 pages) elaborating
the output of the discussion on that particular day (Students shall identify which phase
of the Value Management process they have conducted the meeting, members presented,
proposal given/ tasks conducted by each member and summary of the output).
Methodology
• Students shall work in groups of a maximum of five (05) members in each.

• The assessment will be made in three steps: (1) a role play, (2) a final report and
(3) a presentation.
Role Play (25%)
The role play will be conducted after 3 weeks from the date of assignment/handing over of
the CW brief. Students shall select a suitable phase in the Value Engineering workshop and
carry out the discussion related to that phase representing the assigned team member (Ex:
Quantity Surveyor, Engineer, Project Manager etc.). At the end of the day, students shall
submit a draft including but not limited to describing phase of the Value Management
process they have conducted the meeting, the members presented, proposal given/ tasks
conducted by each member and a summary of the output.
Final Report (50%)
The students shall produce a coursework report with a maximum of 4000 words. The report
shall include the following.
• The coursework brief
• An introduction
• Body text (preferably in appropriate chapters)
• Conclusions
• References (In accordance with APA 7th Referencing Guideline)
• Annexes (If any)
Presentation (25%)
The findings should be presented in the form of an oral presentation with the aid of
computer-based graphical presentation packages (e.g., MS PowerPoint). Each group is
given a maximum duration of 15 minutes to present their findings with follow-up Q&A.
Assessment Criteria
ROLE PLAY FEEDBACK SHEET
Individual
Group Assessment
Assessment
Distribution of Role Play activities
Knowledge and comprehension

Meeting Minutes Submission
Presenting and acting skills

Content of the role pay
Time management
Total
Role Play Evaluation
Maximum marks 10 20 15 05 20 30 100

Aberathna P.G.S.A.
Perera R.A.B.U.N.
Sampath A.M.P.
Prasad R.A.W.
Wanigasinghe H.S.N.
Comments
H.S.N.
Wanigasinghe
Prasad R.A.W.
Sampath A.M.P.
Maximum marks
Perera R.A.B.U.N.
Report Evaluation
Aberathna P.G.S.A.
5
Presentation of the Report
10
Introduction to the Report
Coverage of Value Engineering Approaches

Task 1 - (Wide range of literature covered,
30
Evidence of understanding, Relevance and
Application, Focus on applications)
Comments
Coverage of Value Engineering Workshop
Task 2 - (Well-planned pre-workshop
25
activities, Effective description of activities,
REPORT FEEDBACK SHEET
Group Assessment
Comprehensive plan for execution)

10
Organization and Structure of the Report

10
Conclusions
10
Citation and Referencing
Total
100
Final
Perera
Prasad
marks
H.S.N.
A.M.P.
R.A.W.
Sampath
P.G.S.A.
Aberathna
Maximum
Evaluation
R.A.B.U.N.
Presentation
Wanigasinghe
Structure of the presentation, effective
20
use of visual aids and creativity
20
Content of the presentation
05
Citations & referencing as per APA
Group Assessment
05
Time management
[
20
Knowledge and comprehension
Use of appropriate body

10 language/ voice
Comments
Presentation skills , Confidence of
10
talking in front of the audience

PRESENTATION FEEDBACK SHEET
Presentation without reading from

05
notes
Individual Assessment
05
Professional attire
Total
100
SUMMARY OF COURSEWORK MARKS
Report Total
Role play Presentation
Reg. No. Student name (50%) Marks
(25%) (25%)
(100%)
601T Aberathna P.G.S.A.
657T Perera R.A.B.U.N.
672J Sampath A.M.P.
706U Prasad R.A.W.
724X Wanigasinghe H.S.N.
Note: Late submissions are subjected to a penalty of five (5) marks for the first delayed 24 hours.
Thereafter submissions will not be accepted and zero marks will be given.
Assessed by (name/s)
(Examiner/s / Lecturer/s)
Signature Date
Instead of above please follow the following format, as per the template – to be consistent with the
Department CW template
Dr. Thanuja Ramachandra

Dr. Sachie Gunathilake
Dr. Tharusha Ranadewa
Checked by Module Lecturer
Mr. Dulshan Costa
Signature TR/SG/TAR/NK/DC/AP Date
Moderated by Dr. Menaha Thayaparan
Signature MT Date 12.01.2024

Continuous Assessment
Coordinator
Signature Date
Assessed by (name/s)
Mr. Dulshan Costa
(Examiner/s / Lecturer/s)
Signature Date
Plagiarism, Cheating and Collusion

Plagiarism, cheating or collusion is regarded as a serious breach of the academic
standards.
Students must carefully read the Academic Rules on Plagiarism, Cheating and Collusion.
RULES WILL BE STRICTLY ENFORCED

BE 4407- Construction Economics III Conducting Value Engineering Workshop for MEP Services
Acknowledgement
We would like to express our sincere gratitude to the module lecturers, Ch. QS. Dr. Thanuja
Ramachandra, Dr. Sachie Gunathilaka, for their invaluable guidance and support throughout this project.
Their insights and feedback have been instrumental in shaping the outcome of our report.
We would also like to extend our appreciation to the assistant lecturers, Ms. Niwanthika Kurukulasooriya,
Ms. Agana Parameswaran, and Mr. Dulshan Costa, for their tireless efforts in supporting us during this
course. Their commitment and dedication have been a major source of inspiration for us.
Furthermore, we are grateful to all those who have contributed to this report directly or indirectly through
their work or feedback. Your support has been invaluable, and we sincerely appreciate your time and
effort.
We acknowledge the importance of this project in our academic journey and recognize the contributions
of each member of the group toward producing this report. Once again, thank you all for your
contributions toward making this report a success.
Department of Building Economics i

Table of Contents
Acknowledgement ...................................................................................................................................... i
Table of Contents ...................................................................................................................................... ii
Table of Figures ........................................................................................................................................ iv
List of Tables ............................................................................................................................................. v
1 Introduction ....................................................................................................................................... 1
2 Overview of the HVAC System ........................................................................................................ 2
2.1 Purpose of Value Engineering (VE) .......................................................................................... 4
2.2 Value Engineering Proposals for HVAC System ...................................................................... 6
2.2.1 Replacing air-cooled chillers with water-cooled chillers. ................................................. 6
2.2.2 Using Round Ducts ........................................................................................................... 7
2.2.3 Replacing Aluminium Grilles with GI Grilles .................................................................. 8
2.2.4 Placing the Control Panel Indoors Instead of Outdoors .................................................... 8
3 Value Engineering Criteria for HVAC System ................................................................................ 10
4 Value Engineering Techniques Used for Functional Analysis ........................................................ 13
4.1 Function Analysis System Technique (FAST) ........................................................................ 14
4.1.1 Function Tree................................................................................................................... 15
4.1.2 Function-Cost Matrix ...................................................................................................... 17
4.1.3 Value Index (function cost/function worth) .................................................................... 18
5 VALUE ENGINEERING CASE STUDY – HVAC SYSTEM ....................................................... 20
5.1 Pre-Study Phase....................................................................................................................... 21
5.1.1 Project Overview & Scope Selection .............................................................................. 21
5.1.2 Value Engineering Team Members ................................................................................. 22
5.1.3 Proposed Work Plan & Activities for the Workshop Value Engineering ........................ 23
5.1.4 Cost/Worth Ratios for HVAC Systems ........................................................................... 24
5.1.5 Proposed Time Frame for Work Sjop .............................................................................. 26
Department of Building Economics ii

5.2 Workshop Phase ...................................................................................................................... 28
5.2.1 Information Stage ............................................................................................................ 28
5.2.2 General Project Details.................................................................................................... 28
5.2.3 Proposed HVAC System ................................................................................................. 30
5.3 Functional Analysis Stage ....................................................................................................... 31
5.3.1 FAST Diagram for HVAC System .................................................................................. 32
5.3.2 Cost-Model Sheet for HVAC System.............................................................................. 33
5.4 Creativity Phase....................................................................................................................... 38
5.5 Evaluation Phase ..................................................................................................................... 40
5.6 Development Phase ................................................................................................................. 42
5.6.1 Summary Cost Worksheet ............................................................................................... 45
5.6.2 Summary Life Cycle Cost Sheet ..................................................................................... 48
5.6.3 Summary of Cost Savings ............................................................................................... 49
5.7 Reporting & Recommendation Phase ..................................................................................... 50
5.8 Post Workshop Phase .............................................................................................................. 52
5.8.1 Plan for Execution ........................................................................................................... 52
5.8.2 Proposal for Following Up Activities.............................................................................. 53
6 Conclusion ....................................................................................................................................... 54
References ............................................................................................................................................... 55
Appendices .............................................................................................................................................. 57
Department of Building Economics iii

Table of Figures
Figure 2-1:HVAC Diagram ....................................................................................................................... 2
Figure 2-2: Types of HVAC system .......................................................................................................... 3
Figure 2-3: Time savings from VE in construction projects ..................................................................... 4
Figure 2-4: Purposes of VE in construction projects ................................................................................ 5
Figure 2-5: Purposes of VE in HVAC system ........................................................................................... 5
Figure 2-6: Advantages of water-cooled chillers ...................................................................................... 6
Figure 3-1: Criteria for HVAC systems ................................................................................................... 12
Figure 4-1 Classical model of FAST. ...................................................................................................... 14
Figure 4-2 How a function is expanded in "How" and "Why" directions in a FAST diagram ............... 15
Figure 4-3 Hierarchical Structure of Axiomatic Design ......................................................................... 16
Figure 4-4 Component of Function-Cost matrix. .................................................................................... 17
Figure 4-5 FUNCTION–COST–WORTH MATRIX .............................................................................. 18
Figure 5-1: VE 40-hour workshop process ............................................................................................. 20
Figure 5-2: Work plan for value engineering workshop ......................................................................... 23
Figure 5-3:Site Location.......................................................................................................................... 29
Figure 5-4:The Grand Resisdencies Conceptual Design......................................................................... 29
Figure 5-5: Split Ducted System ............................................................................................................. 30
Figure 5-6: FAST diagram for HVAC system ......................................................................................... 32
Figure 5-7: Evaluation Matrix ................................................................................................................. 41
Figure 5-8: Original design of HVAC system ......................................................................................... 42
Department of Building Economics iv

List of Tables
Table 1:Components of HVAC system ..................................................................................................... 3
Table 2: Advantages & disadvantages of round duct ................................................................................ 7
Table 3: Quality criteria. ......................................................................................................................... 10
Table 4:Buildability, aesthetic, durability, and sustainability criteria ..................................................... 11
Table 5: Tools for functional analysis ..................................................................................................... 13
Table 6: Value engineering team members .............................................................................................. 22
Table 7: Cost/worth Ratio Sheet.............................................................................................................. 24
Table 8: General Project Details .............................................................................................................. 28
Table 9: HVAC Project Data ................................................................................................................... 30
Table 10: Cost model for HVAC system ................................................................................................. 33
Table 11:VE cost model for HVAC system ............................................................................................. 35
Table 12: Creativity/Idea Evaluation Sheet ............................................................................................. 38
Table 13: Circular duct hanging & spacing specifications ...................................................................... 44
Table 14: Summary cost worksheet for original design .......................................................................... 45
Table 15: Summary worksheet of proposed design ................................................................................ 46
Table 16: Summary LCC Worksheet ....................................................................................................... 48
Table 17: Summary of cost saving .......................................................................................................... 49
Table 18: Results of the original design & proposed alternative ............................................................ 51
Table 19: Plan for work execution for selected alternative ..................................................................... 52
Table 20: Proposal for follow up activities ............................................................................................. 53
Department of Building Economics v

1 Introduction
Value engineering is a methodical procedure designed to enhance the value of a product and
it emphasizes enhancing value while maintaining affordable costs (Bigrentz, 2020). In recent years, the
construction sector has faced increased uncertainty and volatile market fluctuations. Scarce tried-and-
true resources are seeing unprecedented price surges, causing budgets to skyrocket (Gordian, 2024).
However, there is still unfinished work, requiring estimators, builders, architects, and other preliminary
construction professionals to seek alternative approaches. Construction of projects is more costly.
Therefore, the value engineering concept is more significant for the construction industry. When
considering the building project, the installation of MEP services is more important. Therefore, the report
will discuss the value engineering of the HVAC system.
The report will consist of both a literature review and a value engineering workshop programme
information. Under the literature review, several topics will be widely explained as follows. The first one
is an introduction to the selected system. Here, the HVAC system will be identified with the types,
components, and primary functions. Not only that, the purpose of value engineering to the construction
projects as well as the HVAC system will be emphasized properly. Furthermore, the most important one
is providing value engineering proposals for the HVAC system. Here, various, and more suitable
proposals will be provided in the literature review. In addition to that, value engineering criteria will be
provided. Finally, the literature review consisted of several techniques used for functional analysis.
There are several approaches including the Cha ret te, and the VE audit, Contractor’s change proposal,
and the 40-hour workshop programme, that can be used in value engineering for construction projects.
Here, 40-hour workshop approaches will be used to value engineering for this project. The workshop is
generally consisted of six phase job plans. They are identified as information phase, functional analysis
phase, creativity phase, evaluation phase, development phase, and finally reporting and recommendation
phase. Here, value engineering will be done for the multi-storey apartment project, and this is consisted
of the split type- ducted AC system. Finally, this report will provide compressive knowledge regarding
the value engineering concept.
Department of Building Economics 1

2 Overview of the HVAC System

The selected system is the Heating, Ventilation, and Air Conditioning (HVAC) system that is in the
Mechanical system. Seyam (2018) clearly emphasized that the interior air quality and thermal stability
for building inhabitants are provided by HVAC systems, which are important components of mechanical
systems. In residential developments including hotels, single-family houses, and condominium
complexes, and additionally in medium-sized to large-scale industrial or commercial buildings including
institutions and skyscrapers, as well as in maritime settings, it plays a significant role (Kumar, Meenu, &
Shubham, 2019).
Figure 2-1:HVAC Diagram
Furthermore, there are several functions of the HVAC system. They can mainly be identified as follows.
Maintaining a warm and comfortable home requires a functional heating system (Twain, 2023),
particularly in the cold Smithtown wintertime, HVAC systems assist eliminate allergies, contaminants,
and stale air from the inside areas while also supplying a regular supply of oxygen (Ramzy, 2023), the
degree of humidity within buildings may be managed in part via this systems, and Inbuilt air filtration
systems in HVAC systems have the capacity to collect and eliminate a wide range of impurities, such as
dust, pollen, pet dander, and some germs and viruses (Chaoudhary, 2017). Generally, this system is
consisted of several components such as the main unit, thermostat, air handler, evaporator coil, condenser
coil, heat exchanger, and ductwork (Moor, 2023).

Table 1:Components of HVAC system
Moreover Kumar, Meenu, & Shubham (2019) stated that according to zones, locations, and distribution,
there are main types of HVAC system including, central HVAC system, local HVAC system, and split
type HVAC systems. Selecting the most appropriate HVAC system requires a thorough analysis of
several relevant elements, including building size, location, budgetary constraints, and other relevant
criteria that all work together to affect the final decision (Trane Company, 2024).
Figure 2-2: Types of HVAC system

2.1 Purpose of Value Engineering (VE)

Value Engineering is more significant concept in the construction industry. A technique that project teams
can employ to increase the value of the construction project can basically be identified as value
engineering (Miles, 2022). Further author explained that, to ensure the highest possible value, a group of
engineers and designers collaborate to thoroughly examine every stage of the project as part of the value
engineering process in the building industry. In addition to that, value engineering encourages the
replacement of more costly materials and techniques with less costly ones without compromising
functionality (Barone, 2023). There are mainly six phases including the informational phase, functional
analyses, creative phase, evaluation phase, development phase and finally presentation phase which is
followed by the VE (Quantity Surveyor Blog, 2019).
Figure 2-3: Time savings from VE in construction projects
High completion costs, a great distance between design and execution, and challenging project execution
are the primary reasons why value engineering is used in construction endeavors, etc. (Atabay &
Galipogullari, 2013). The main purpose of value engineering in construction projects is to offer solutions
that can be used to reduce costs, improve quality (functionality), and overcome issues. All of these rely
upon paying attention to the project function; nevertheless, it's crucial to take the shortest amount of time
to consider the purposes (Rad & Yamini, 2016). Not only that, the optimum balance between function,
quality, and cost in building projects is an additional purpose of value engineering (Naderpajouh &
Afshar, 2008). Value engineering's primary purpose is to raise the value of building projects.

Figure 2-4: Purposes of VE in construction projects
When considering the HVAC system, value engineering concept can also be applied to this system.
Therefore, In HVAC, value engineering is frequently used (Zhen, 2024). Value engineering is a technique
used by engineers to reduce the initial cost of an HVAC system that is recently installed. Reducing upfront
and ongoing expenses, boosting environmental sustainability and energy efficiency, and increasing
interior comfort and air quality are the main purposes of value engineering of HVAC systems. According
to the above-emphasized facts, the purposes of VE in the HVAC system can be identified.
Figure 2-5: Purposes of VE in HVAC system

2.2 Value Engineering Proposals for HVAC System

The HVAC system of a typical building is responsible for over 40% of the building's total energy
consumption (Alptekin, 2019). Additionally, its performance significantly influences the health, comfort,
and productivity of occupants. Value Engineering (VE) is a systematic method to improve the value of a
product or service by enhancing its functionality and reducing its cost (Roseke, 2020). Therefore, VE can
help identify and eliminate unnecessary or excessive components, materials, and processes in HVAC
systems, resulting in lower capital and maintenance costs. As a result, HVAC manufacturers were
constantly looking for new technologies to provide the highest comfort cooling and extremely effective,
low-cost equipment. (Perez et al., 2023). Furthermore, various value engineering proposals have been
presented to improve HVAC systems.
2.2.1 Replacing air-cooled chillers with water-cooled chillers.
Abdelghany et al. (2015) suggest that replacing air-cooled chillers by water-cooled chillers can gain a
cost saving over their life cycle. Their case study reveals a remarkable tenfold improvement in water film
coefficient over air, resulting in superior heat transfer properties. Despite the initial lower investment in
air-cooled systems, the cost of water-cooled chillers decreases by 15-20% over the life cycle (Abdelghany
et al., 2015). Several benefits of water-cooled chillers are outlined below.
Lower Electrical Power Consumption

• Water-cooled chillers have a lower power consumption per tonne (0.75
KW/TR) than air-cooled chillers (1.2 KW/TR).
Noise Reduction
• Water-cooled chillers produce less noise than air-cooled chillers.
Reduce Refrigerant Leakage

• Chilled-water applied systems minimize the potential for refrigerant
leaks.
Figure 2-6: Advantages of water-cooled chillers

2.2.2 Using Round Ducts
Different duct shapes, such as round, square, and rectangular, are used for carrying air. Each shape has
its own advantages and disadvantages, making it suitable for specific applications where one shape
clearly performs better than the others. Bhatia (2017) suggests that round duct is the most efficient shape
for conveying moving air in duct systems because of its low resistance, large cross-sectional area, and
minimal contact surface. In other terms, this means that round ducts require less material compared to
rectangular ducts to handle the similar air volume (Reduction in material cost).
In the example provided by Bhatia (2017), the 18-inch diameter round duct, with a cross-sectional area
of 254.5 sq.-in and a perimeter of 4.7 ft., exhibits the similar air-carrying capacity as a 26” x 11”
rectangular duct, which has a 286 sq.-in area and a perimeter of 6.2 ft. Despite the rectangular duct having
32% more metal and incurring proportionally higher costs, including insulation, supports, and labour, the
round duct proves to be a more cost-effective choice for achieving similar capacity. Following table 1
present the advantages and disadvantages of round ductwork.
Table 2: Advantages & disadvantages of round duct
Advantages of Round Ductwork Disadvantages of Round Ductwork

Lower pressure drops result in reduced fan Requires more clear height for installation.
horsepower and smaller equipment.
Reduced surface area necessitates decreased Certain diameter round ducts may not fit in
insulation when wrapped externally. spaces with limited vertical clearance.
Longer lengths eliminate costly field joints; Compromises in design may be necessary,
spiral lock-seams allow the use of lighter such as a combination of a rectangular
gauges. plenum and round branches in height-
restricted spaces.
Improved leak resistance in spiral ducts
compared to rectangular ducts.
Superior acoustic performance due to curved
surfaces reducing breakout noise.
Promotes healthier indoor environments by
reducing dirt accumulation and bacterial
growth.

2.2.3 Replacing Aluminium Grilles with GI Grilles
Replacing aluminium grilles with galvanised iron (GI) grilles is a financially beneficial approach due to
the significant cost difference of up to 30% per grille (Zhen, 2022). Further author stated that, although
GI grilles are prone to corrosion and are heavier than aluminium, strategically placing them in controlled
humidity environments, such as spaces regulated by air conditioning systems, offers significant benefits.
Specially, areas that are exposed beneath ceilings, where humidity levels are controlled, are suitable for
the use of GI grilles. This practical approach is in line with a cost-effective framework while considering
the contextual factors that influence the installation of these architectural elements.
2.2.4 Placing the Control Panel Indoors Instead of Outdoors
Efficient placement of the control panel for HVAC equipment can result in cost savings by eliminating
the need for higher specifications to withstand outdoor weather conditions (Zhen, 2022). The most
economical choice for a control panel is usually a wall-mounted indoor panel. However, The more
expensive weatherproof panel typically features a floor-mounted design and a double door to effectively
shield against rainwater infiltration. While it is possible to install equipment like exhaust fans and pumps
outdoors, it is not always necessary for their control panel to be exposed to the weather. Moreover, It is
critical to avoid positioning the control panel too far from the machine., as this can result in excessive
wiring costs that exceed the advantages of having an indoor panel.

In addition to above, Zhen (2022) has identified various value engineering proposals commonly
employed in the HVAC systems.
Table 3: Common Value Engineering Proposals in HVAC system
Value Engineering Description

Butterfly duct fittings are often used for smoother airflow,
Replace Butterfly Duct Fittings with End Caps
but assembly time can be saved by using end caps
For pressurization systems in high-rise buildings, omitting

Avoid Use of Pressurisation Riser Ducts
riser ducts can significantly reduce material and
installation costs.
Opting for a free return instead of a ducted return for air
Use Free Return Instead of Ducted Return
handling units (AHUs) and fan coil units (FCUs) can save
costs on fabrication and installation.
Changing the material of chilled water pipes from Class C
Upgrade Chilled Water Pipes from Class C to Class B
to Class B can save approximately 10% per pipe, but may
reduce lifespan
Reduce the kA Rating of Circuit Breakers Lowering the kA rating of circuit breakers can result in
cost savings, especially for larger breakers. Potential 30%
cost reduction for a 50A MCCB.
A study conducted by Perez et al. (2021) found that utilising a direct-expansion (DX) variable refrigerant
flow (VRF) system with floor standing air conditioners and energy recovery ventilators (ERVs) offers
several advantages such as flexible zoning, high efficiency, and low operating costs. This option
efficiently fulfils the necessary thermodynamic requirements of the room while keeping costs to a
minimum over a 10-year equipment lifespan. Moreover, Jahangir et al. (2022) recommended to utilise a
hybrid system that integrates a solar thermal collector, an absorption chiller, and a heat pump. This option
has the potential to utilise renewable energy sources, effectively reduce greenhouse gas emissions, and
significantly lower electricity consumption. In fact, it has been found that this option can result in annual
energy cost savings of up to 40% when compared to a conventional system.

3 Value Engineering Criteria for HVAC System

Heating, ventilation, and air conditioning (HVAC) systems play a crucial role in the energy usage and
environmental impact of buildings (Al-Ghamdi & Al-Gahtani, 2022). Moreover, Che et al. (2019)
emphasize that selection of an HVAC system typically relies on factors such as energy efficiency, indoor
air quality, and thermal comfort. As well as the benefits of VE for HVAC systems can be measured and
quantified using various indicators, such as cost savings, energy savings, performance improvement,
quality improvement, customer satisfaction, and value improvement (Jouhara & Yang, 2018). Therefore,
it is crucial to establish meticulous criteria for the careful evaluation and selection of an HVAC system
within the value engineering framework.
Moreover, several academics have defined quality as the provision of faultless customer service or
products. According to Al-Ghamdi and Al-Gahtani (2022), There are six quality criteria outlined in Table
2.
Table 4: Quality criteria.
Criterion Description
Air volume of system The required air volume in a given space
Energy efficiency ratio Efficiency of HVAC electricity consumption
Heating conditioning in system Exploring heating options with heat pumps
Centralized place for air diffuser Positioning of air diffusers for optimal air distribution
Sound rating level System noise
Air replenishment Utilisation of fresh air in HVAC systems

Furthermore, criteria related to assessing the quality of HVAC systems, and factors such as aesthetics,
buildability, sustainability, and durability play crucial roles in the decision-making process (Shahrestani
et al., 2017). Thus, Al-Ghamdi and Al-Gahtani (2022) identified several criteria associated with the
HVAC system, as described in the following Table 3.
Table 5:Buildability, aesthetic, durability, and sustainability criteria
Criterion Description
Aesthetic system Appearance of HVAC system and overlap with building design
Dimensions of HVAC units Dimensions of HVAC system occupying spaces
Weights of HVAC units Effects of HVAC units on the building
Ease of HVAC installation Simple installation and construction of HVAC system
Linking HVAC system with fire alarm system Fire alarm systems are low-current applications designed to
control the spread of smoke from a fire source.
System’s environmental efficiency energy consumption, CO2 and pollutant emissions, solid waste
Agent’s ability to provide service After-sale services
Lifetime of HVAC system Duration of operation without incurring additional maintenance
or repair expenses under typical conditions.
Additionally, the ASHRAE standards prioritise the durability criterion (Hamza et al., 2023). Al-Ghamdi
and Al-Gahtani (2022) emphasized the importance of considering life cycle cost (LCC) as a crucial factor
in evaluating HVAC systems for buildings. Thus, The HVAC system's life-cycle cost comprises the initial
purchase price, installation fees, energy consumption, maintenance and repair expenses, and eventual
replacement (Johnson, 2023) Consequently, life cycle cost analysis helps in making informed decisions
that balance upfront expenses with energy and maintenance savings over the system's lifespan.
LLC = IC + OC IC - Initial Cost

OC - Operating Cost
OC = EC + MC IC - Energy Cost
MC - Maintenance Cost

In their study, Hamza et al. (2023) identified the most important criteria for evaluating and ranking
different HVAC systems, as depicted in Figure 1.
Environmental Technical
•Energy •Ease of
Consumption Maintenance
•CO2 Emission •Ease of Installation
•Noise Level •Vendor Availability
Economical Socio-Functional
•Capital Cost •Thermal Comfort
•Lifetime •Ventilation
•Maintenance Cost •Indoor Volume
Requirement
•Outdoor
Appearance
•Indoor Appearance
Figure 3-1: Criteria for HVAC systems
In addition, the available construction budget sets financial constraints, demanding an efficient balance
between quality and cost (Samaras, 2020). Further author state that the size, shape, and function of the
building influence the HVAC system's capacity and layout, and architectural limitations, such as space
constraints or aesthetic considerations, must also be accommodated in the design process.

4 Value Engineering Techniques Used for Functional Analysis

The main functions of an HVAC system are to control the environment in which it works by controlling
the temperature of a room through heating and cooling, controlling the humidity level in that
environment, ensuring the cleanliness of the air inside the said environment, and keeping the indoor air
quality healthy (Higgins, 2022).
According to Lalevée et al. (2021), functional analysis aims to identify and treat functions that the system
must complete. Similarly, Elyamany (n.d.) identified it as recognising the project's functional needs rather
than its existing conception and focusing on what the project must accomplish.
Elyamany (n.d.) identified tools for functional analysis as follows,
Table 6: Tools for functional analysis
Tools Purpose
Function Analysis System Technique (FAST)

Identify the project functions
Function Tree
Cost to Function Analysis (Function Cost Matrix) Dimension the model with cost drivers,
Failure Measurement Error Analysis (FMEA) performance attributes and user attitudes to
Performance to Function Analysis select value mismatched functions to focus the
Relate Customer Attitudes to Functions creativity phase
Estimate the worth of functions to select value-

Value Index (function cost/function worth) mismatched functions on which to focus the
creativity phase

4.1 Function Analysis System Technique (FAST)

A graphical representation of the dependent relationships between functions within a project. “A
technique to develop a graphical representation showing the logical relationships between the functions
of a project, product, process, or service based on the questions “How” and “Why” (Value Analysis
Canada, 2024). Similarly, Bartolomei & Miller (n.d.) defined, this methodical approach to understanding
complex systems requires converting the "activities" performed within a system into the "functions" the
system performs for its clients. Furthermore, FAST helps clarify the scope, purpose, and value of the
system, as well as identify opportunities for improvement (Tehmono, 2024).
Figure 4-1 Classical model of FAST.
Source: (Elyamany, n.d.)
To create a FAST diagram there have been essential questions addressed as follows.
1. How do you achieve this function?

2. Why do you do this function?
3. When you do this function, what other functions must you do?
The technique for creating a logic-linked function diagram is found in the how/why logic. The "how"
and "why" questions can be used to logically connect randomly produced functions (as used in function
analysis). The degree of abstraction decreases from left to right over time. This also illustrates
"dependencies," in which a lower-level abstraction function depends on a higher-level abstraction
function.

Figure 4-2 How a function is expanded in "How" and "Why" directions in a FAST diagram
Characteristics of FAST: (Value Analysis Canada, 2024)
• Develop a shared understanding of the project.

• Identify missing functions.
• Define, simplify and clarify the problem.
• Organize and understand the relationships between functions.
• Identify the basic function of the project, process or product.
• Improve communication and consensus.
• Stimulate creativity.
4.1.1 Function Tree
The Function Tree is derived from both conventional function analysis and the hierarchical structure of
Axiomatic Design. The system's structure is provided by the Hierarchical Structure of Axiomatic Design,
which resembles the hierarchical modelling of axiomatic design with functions from Function Analysis
used in place of certain aspects (Kang, 2010). Furthermore, A function tree is used to evaluate existing
functions and create a better solution to meet the client's needs by illustrating all the tasks that a project,
process, or product must complete and the connections between them. The functions are logically

connected, and the model from this diagram shows what the product will do. It begins with a goal
statement and lists all the functions.
Figure 4-3 Hierarchical Structure of Axiomatic Design
Source: (Kang, 2010)
Characteristics of the Function tree: (Kang, 2010)
• Describes an existing system which can be used to overview how the system works with the
details.
• It starts from the highest FR (Functional Requirement) therefore providing insight to find the DC
(Design Component) which meets the FR.
• The structure describes the super-system and sub-system of the system and can also describe the
future system and the past system together.
• Demonstrates only needed functions and could see the function of far from the original system.
• The upper and lower-level functions can be viewed on one screen.
• Through this hierarchical structure it is possible to view the functional structure of the whole
system.

4.1.2 Function-Cost Matrix
The function-cost matrix evaluates a product, process, or service's features and related costs
systematically. Therefore, this method assists in identifying places where costs could be reduced without
affecting the desired functions (MEP Value Engineering Inc, 2023).
There are two main axes in this method as follows:
1. Function Axis: The function axis lists all the essential functions or characteristics of the product,
process, or service. These functions represent the critical aspects that the project is intended to
fulfil or achieve. Each function is identified and defined clearly to ensure a comprehensive
understanding of the project's purpose.
2. Cost Axis: The cost axis represents the various costs associated with the functions listed on the
function axis. These costs may include direct costs (e.g., material costs, labour costs, equipment
costs) and indirect costs (e.g., maintenance costs, operational costs, and life-cycle costs).
Figure 4-4 Component of Function-Cost matrix.

4.1.3 Value Index (function cost/function worth)
Value Index is the relationship of function worth to function cost and function worth is the lowest possible
cost to perform any given function or set of functions (Gopalakrishnan, n.d.). Furthermore, Elyamany
(n.d.) demonstrated that a useful technique for determining each function's potential for value
improvement is the function-cost-worth analysis and this will not only assist in identifying potential, but
it will also provide some innovative ideas for how to realise that potential.
Figure 4-5 FUNCTION–COST–WORTH MATRIX

VALUE ENGINEERING REPORT
FOR
MECHANICAL – HVAC SYSTEM

IN
RITZ APARTMENTS IN COLOMBO 02

5 VALUE ENGINEERING CASE STUDY – HVAC SYSTEM

Value engineering is a creative, organized approach, whose objective is to optimize the life cycle
cost and performance of a facility. To present a clear description of our assessment of the project
in terms of cost and life cycle usage, and the approach that is applied to the study, a multi-
disciplinary team is formed to analyses the project design utilizing applicable value engineering
techniques. It was the objective of each team member to analyze the project and find high-cost
areas, recommend alternatives, and estimate initial and life cycle costs whenever significant for
the original system, and for each proposed alternative.
Figure 5-1: VE 40-hour workshop process

5.1 Pre-Study Phase

Upon receipt of the project documents- namely, selected plans and design documents (Design
development) — selected members of the VE team reviewed them. At this time, the estimate did
not reflect the level of details of the documents. Also, a list of questions and ideas to be reviewed
during the first day of the formal workshop was generated. The project documents were also
reviewed by an HVAC specialist for basic comments. The comments received from the HVAC
specialist, from a large HVAC firm specializing in hotels, were given to the client and design team.
These comments were reviewed with the consultants by the team and incorporated, as applicable,
into the ideas generated during the formal workshop.
5.1.1 Project Overview & Scope Selection
Mechanical system is generally consisted of HVAC system, firefighting system, and transportation
system. Here, HVAC system is selected to conduct the value engineering due to several reasons.
HVAC systems often represent a sizable portion of the initial construction cost as well as ongoing
operational costs for multi-storey apartment. Optimizing the design, selection, and installation of
HVAC components may result in significant savings on both the initial investment and continuing
operating costs. Furthermore, a large quantity of energy is also used by HVAC systems in
buildings, especially in apartment where there may be a considerable demand for heating and
cooling. Value engineering can concentrate on enhancing energy efficiency by choosing energy-
efficient machinery, improved insulation, ventilation methods that are optimized, and sophisticated
control systems. This will lower energy consumption and operating costs while advancing
sustainability. In addition to that, installing equipment, ductwork, and air distribution components
sometimes need specific space for HVAC systems. Effective duct routing, vertical integration
within the building structure, and compact equipment designs are just a few of the creative space-
saving ideas that value engineering may investigate. These ideas can improve the use of existing
space and even increase the amount of room that can be rented out or amenities for tenants.
Moreover, the proper regulation of heating, cooling, ventilation, and humidity is provided by an
efficient HVAC system, which greatly enhances occupant comfort and well-being. When elements
including air filtration, appropriate ventilation rates, and thermal comfort optimization are
included, value engineering may improve indoor air quality and increase productivity and occupant
happiness.

5.1.2 Value Engineering Team Members
Project: Proposed ‘Ritz’ Apartment Building in Colombo 02

Study Title: Value Engineering in HVAC System
Commencement of Study: 2024.01.25
Table 7: Value engineering team members
Name: Title: Organization: Telephone:
Pradeep Sampath Client- Chief Facility Cinnacus Hotels 0715698745

Manager
Nimaya Perera Certified Value Qontract PVT LTD 0777288347

Specialist
Prasad Rupasinghe Senior Facility Qontract PVT LTD 0713161275

Manager
Akalanka Aberathna Design Coordinator Qontract PVT LTD 0778956254
Sandali Wanigasinghe Cost Coordinator VCIM Forms LTD 0778956258

5.1.3 Proposed Work Plan & Activities for the Workshop Value Engineering
Proposed work plan for the VE in HVAC System in Ritz Apartment consists of three study phases.
Figure 5-2: Work plan for value engineering workshop

5.1.4 Cost/Worth Ratios for HVAC Systems
Table 8: Cost/worth Ratio Sheet
ACTUAL/ VE TARGET AMOUNT SAVING COST/WORTH

DESCRIPTION QUANTITY UNIT RATE ESTIIMATED RATIO
AMOUNT LKR
Sub Total-Primary Equipment LKR LKR LKR 1.25

36,690,000.00 29,352,000.00 7,338,000.00
Sub Total-Terminal Equipment LKR LKR LKR 1.25

1,835,400.00 1,468,320.00 367,080.00

25,169,800.00 20,135,840.00 5,033,960.00

3,752,000.00 3,001,600.00 750,400.00

2,047,500.00 1,638,000.00 409,500.00
Sub Total-Terminal Equipment LKR LKR 606,200.00 LKR 1.25

757,750.00 151,550.00

Sub Total-Primary Equipment LKR LKR 793,600.00 LKR 1.25

992,000.00 198,400.00

2,824,500.00 2,259,600.00 564,900.00
SubTotal LKR LKR

141,561,400.00 113,249,120.00
ADD- Contigencies 15% LKR LKR 16,987,368.00

21,234,210.00
Estimated Total LKR LKR

162,795,610.00 130,236,488.00

5.1.5 Proposed Time Frame for Work Shop
Work Plan Phases Activities Time Frame
Pre-Study Phase 1. Project Coordination 1 Hour

(2 Hour) Verify Schedule
Outline Formal for Cost Data
Suggested Format for A/E
Outline Necessary Background Data
Outline Project Responsibilities
2. Pre-Study Preparation 1 Hour
Collect Design Data
Distribute to Team Members
Verity Cost Data
Outline Protect Constraint
Collect Deta re: Mode Operation
Familiarization by Team Members
Project Study Phase 3. Orientation 1 Hour
(28 Hour) Introduction by Program Coordinator
Workshop Logistics Finalized
4. Information Phase 6 Hour
Introduction by Program Coordinator
Project Description & Presentation by Designer
Owner Outlines Requirements & Constraints
5. Creative Phase 8 Hour
Introduction to creative thinking
6. Judgement Phase 4 Hour
Eliminate impractical ideas
Rank Ideas with Advantages & Disadvantages
Weighted Evaluation

Review ideas with Owner, A/E

Select Best Ideas for Development
7. Development Phase 6 Hour
Develop Preliminary Design of Ideas
Prepare Alternate Design Sketches
Prepare Estimate
Life Cycle Comparison
8. Recommendation Phase 3 Hour
Develop Recommendations
Summarize Findings
Present VE Ideas to Owner, A/E
Oral Presentation
Determine Acceptance of Ideas
Post VE Study 9. VE Study Report 5 Hour
Procedure Prepare VE Preliminary Report
(10 Hour) Owner/Designer Prepares Final Response
10. Final Acceptance 2 Hour
Owner Approval
Submittal to Owner
Final Report with Implementation
Redesign
11. Project Follow-Up 3 Hour
Bid Analysis
Estimate Implementation
Document Results
Post Operational Evaluation
Optional Services
Total 40 Hour

5.2 Workshop Phase

5.2.1 Information Stage
For this study, the client would like to cool the space of the said project that would maximize the
cooling and minimize the overall cost. To give a further understanding of how it would comply
with the client's requirements. These are the project information with the required thermodynamic
properties, type of HVAC system used, equipment used in the HVAC system, and its associated
properties and costs. For the summary of the project information
5.2.2 General Project Details
The Grand Residencies is an opulent 7-story apartment complex nestled in the heart of Colombo
3, designed for those with a taste for luxury living. Boasting a prime location, this exclusive
residence offers unparalleled comfort and elegance to its discerning residents. With each floor
featuring 7 meticulously crafted apartments, The Grand Residencies promises spacious and stylish
living spaces, meticulously designed to meet the highest standards of luxury living. From stunning
city views to lavish interiors, every detail has been carefully curated to create an ambiance of
sophistication and indulgence. Built by the renowned Prime Construction, known for their
impeccable craftsmanship and attention to detail, The Grand Residencies stands as a testament to
superior quality and excellence in construction. Situated on a sprawling land area of 91 perches,
the complex offers ample space for residents to enjoy privacy and tranquility amidst the bustling
cityscape.
Table 9: General Project Details
1. Project Name :- “The Grand Residencies” -Colombo 3
2. Project type :- Residential Building

Nature of the project (Turnkey : NO
or Not)
3. Size of the Development :-

Gross Floor Area : 9000 sqm
Total No. of Floors : 7+Podium+Roof Floor
No. of Floors for apartments 7
No. of Apartment units : 50
Height of the Building : 36 m

4. Stakeholder’s Involved :-
Contractor Prime Construction (Pvt) Ltd
Consultant NJ Consultants/Anil Kumarage (Pvt) Ltd
5. Land Area :- 91.375 perch
6. Location of the Building :- Colombo 3, near Batagalla Rd
7. Facilities available :- Gym, Swimming pool, Meeting Rooms, Roof Top

Terrace, Visitor's Lounge
Figure 5-4:The Grand Resisdencies Conceptual Design
Figure 5-3:Site Location

5.2.3 Proposed HVAC System
Figure 5-5: Split Ducted System
For this project, a split ducted system is proposed. The HVAC system installed in The Grand
Residencies has been carefully designed to provide optimal comfort and efficiency across its 9000
square meter floor area. With a ceiling height of 3 meters and accommodating up to 200 occupants,
the system is tailored to meet the needs of luxury living. Featuring a split ducted design, it boasts
advanced capabilities including precise temperature control with a supply air temperature of
12.8°C and a robust total coil load of 143 kW. Incorporating outdoor air flow rates of 1751 LPS,
the system ensures adequate ventilation for occupants' well-being.
Table 10: HVAC Project Data
List Description List Description

Space Profile Calculated Condition (With Outdoor Air)
Floor Area 9000 square meters Supply Air Temperature 12.8° C
Ceiling Height 3 meters Total Coil Load 143 kW
Number of Occupants 200 Sensible Coil Load 85.5 kW
Total Wall Area 2100 square meters Supply Air Flow Rate 4992 LPS
Total Window Area 75 square meters Outdoor Air Flow Rate 1751 LPS
Building Weight 341.8 kg/m 2
Bypass Factor 0.10
Occupant Activity Seated at Rest Resulting Relative Humidity 49 %
Soil Conductivity 1.385 W/(m-k) Room Thermostat setpoints 23° C
(occupied)
Outdoor Air Properties Room Thermostat setpoints 25° C
(unoccupied)
Dry Bulb Temperature 35° C Resulting Humidity Ratio 9.72 g/kg

Wet Bulb Temperature 27.2° C Resulting Enthalpy 45 kJ/Kg

Relative Humidity 55.14% Calculated Condition (Without Outdoor Air)
Humidity Ratio 19.74 g/kg Supply Air Temperature 12.8° C
Enthalpy 85.86 KJ/Kg Total Coil Load 63.6 kW
Dew Point Temperature 26.65° C Sensible Coil Load 61.7 kW
Supply Air Flow Rate 4992 LPS
Bypass Factor 0.1
Resulting Relative Humidity 48 %
Room Thermostat setpoints 23° C
(occupied)
Room Thermostat setpoints 25° C
(unoccupied)
Resulting Humidity Ratio 16.97 g/kg
Resulting Enthalpy 68.36 kJ/kg
5.3 Functional Analysis Stage

Li (2023) defines indoor air quality (IAQ) as a pleasant atmosphere that comprises humidification,
heating, cooling, filtration, air circulation, and fresh air supply. HVAC systems utilize the most
energy in residential and commercial buildings (Perera et al., 2017). The project's goal is to create
a cost-effective indoor air quality solution for space.
To achieve best value engineering input to the project, the basic function of a HVAC system should
be properly identified. In HVAC system, the main function is to cool the indoor air. However, due
to Sri Lankan tropical weather, there is a lack of need of heating the indoor conditions. After the
basic function, the secondary function will be determined. These are the necessary, attractive,
undesired, and selling functions. Secondary functions are those that are required to maintain the
basic functions. Aesthetic functions determine the perceived worth of a product, service, or project.
Operations that have a detrimental influence on the system are undesirable or unnecessary
functions for customers. The sell function is linked to both esteem value and essential function.
Improved performance in basic. Below figure depicts the functional analysis FAST diagram of the
HVAC system in Ritz Apartments.

5.3.1 FAST Diagram for HVAC System
Figure 5-6: FAST diagram for HVAC system

5.3.2 Cost-Model Sheet for HVAC System
Table 11: Cost model for HVAC system
ITEM AMOUNT AMOUNT

DESCRIPTION QUANTITY UNIT RATE
FAMILY LKR PER GFA
Primary Indoor Air Handling LKR LKR

15 nr
Equipment Units 850,000.00 12,750,000.00
Primary LKR LKR

Extract Fan 50 nr
Equipment 40,950.00 2,047,500.00
Primary LKR LKR

IDU VRV Units 10kW 90 nr
Equipment 266,000.00 23,940,000.00
Sub Total-Primary LKR LKR

Equipment 38,737,500.00 4,304.17
Terminal LKR LKR

Thermostat 126 nr
equipment 6,700.00 844,200.00
Terminal Supply Air Diffusers LKR LKR

84 nr
equipment 300x300 4,300.00 361,200.00
Terminal LKR LKR

Return air grille 175 nr
equipment 4,250.00 743,750.00
Terminal Supply Air Register LKR LKR

70 nr
equipment 1000x200 3,800.00 266,000.00
Terminal Return Air Square LKR LKR

84 nr
equipment Diffusers 4,500.00 378,000.00
Sub Total-Terminal LKR LKR

Equipment 2,593,150.00 288.13
LKR LKR
Pipework GI Pipes 150mm dia 280 m
26,000.00 7,280,000.00
LKR LKR
19,000.00 16,625,000.00
LKR LKR
Ductwork Square Ducts 350x400 182 m
12,400.00 2,256,800.00

LKR LKR
Sub Total-Pipework
26,161,800.00 2,906.87
LKR LKR
15,600.00 3,822,000.00
LKR LKR
14,000.00 1,372,000.00
Square Ducts Below LKR LKR

Ductwork 175 m
300mm 7,900.00 1,382,500.00
LKR LKR
Sub Total Ducts
6,576,500.00 730.72
LKR
Sub Total 74,068,950.00
ADD- Contingencies LKR

15% 11,110,342.50
LKR LKR
Estimated Total 85,179,292.50 18,088.40

Table 12:VE cost model for HVAC system
ACTUAL/
ITEM ESTIIMATED VE TARGET
DESCRIPTION QUANTITY UNIT RATE
FAMILY AMOUNT AMOUNT
LKR
FUNCTIONAL BREAKDOWN -COOLING AIR
Primary Indoor Air Handling LKR LKR LKR

15 nr
Equipment Units 850,000.00 12,750,000.00 10,200,000.00
Primary LKR LKR LKR

IDU VRV Units 10kW 90 nr
Equipment 266,000.00 23,940,000.00 19,152,000.00

Equipment 36,690,000.00 29,352,000.00
Terminal LKR LKR LKR

Thermostat 126 nr
equipment 6,700.00 844,200.00 675,360.00
Terminal Supply Air Diffusers LKR LKR LKR

44 nr
equipment 300x300 4,300.00 189,200.00 151,360.00

equipment 4,250.00 425,000.00 340,000.00
Terminal Supply Air Register LKR LKR LKR

40 nr
equipment 1000x200 3,800.00 152,000.00 121,600.00
Terminal Return Air Square LKR LKR LKR

50 nr
equipment Diffusers 4,500.00 225,000.00 180,000.00

Equipment 1,835,400.00 1,468,320.00
LKR LKR LKR

26,000.00 7,280,000.00 5,824,000.00
LKR LKR LKR

19,000.00 16,625,000.00 13,300,000.00
LKR LKR LKR

12,400.00 1,264,800.00 1,011,840.00
LKR LKR
Sub Total-Pipes
25,169,800.00 20,135,840.00

LKR LKR LKR

15,600.00 2,262,000.00 1,809,600.00
LKR LKR LKR

14,000.00 700,000.00 560,000.00
Square Ducts Below LKR LKR LKR

Ductwork 100 m
300mm 7,900.00 790,000.00 632,000.00
LKR LKR
Sub Total-Ducts
3,752,000.00 3,001,600.00
FUNCTIONAL BREAKDOWN -VENTILATION
Primary LKR LKR LKR

Extract Fan 50 nr
Equipment 40,950.00 2,047,500.00 1,638,000.00

Equipment 2,047,500.00 1,638,000.00
Terminal Supply Air Diffusers LKR LKR LKR

40 nr
equipment 300x300 4,300.00 172,000.00 137,600.00

equipment 4,250.00 318,750.00 255,000.00
Terminal Supply Air Register LKR LKR LKR

30 nr
equipment 1000x200 3,800.00 114,000.00 91,200.00
Terminal Return Air Square LKR LKR LKR

34 nr
equipment Diffusers 4,500.00 153,000.00 122,400.00

Equipment 757,750.00 606,200.00
LKR LKR LKR

12,400.00 992,000.00 793,600.00

Equipment 992,000.00 793,600.00
LKR LKR LKR

15,600.00 1,560,000.00 1,248,000.00
LKR LKR LKR

14,000.00 672,000.00 537,600.00
Square Ducts Below LKR LKR LKR

Ductwork 75 m
300mm 7,900.00 592,500.00 474,000.00

LKR LKR
Sub Total-Ducts
2,824,500.00 2,259,600.00
LKR LKR
Sub Total 74,068,950.00 59,255,160.00
ADD- Contingencies LKR LKR

15% 11,110,342.50 8,888,274.00
LKR LKR
Estimated Total 85,179,292.50 68,143,434.00

5.4 Creativity Phase

This step in the value engineering study involves the listing of all creative ideas. During this time, the value engineering teams thinks
of many ways a s possible to provide the necessary functions at a lower initial and life cycle cost and design enhancements to improve
required functions.
Below table represents all ideas and suggestions made at the VE team gathering and they have been evaluated and ranked with the
concept and idea simulator checklist.
Table 13: Creativity/Idea Evaluation Sheet
Item Creative Idea Idea/Evaluation Idea
No. Listing Rating

Advantage Disadvantage
01 Changing the duct shape into More cost saving Impacts on airflow and turbulence. 01
circular shape implications due to shape
changes
02 Replacing Aluminum grilles with Beneficial approach due to But more humidification leads to 02
GI grilles the significant cost difference corrosion
of up to 30% per grille and
mention about humidity
levels and GI materials
relationship.

03 Installing ceiling cassettes in spite Cost/unit. 24000 BTU around Rs 6 07

of grilles and their specifications lakhs and 36000 BTU around Rs. 10
lakhs
04 Installing floor standing units and More cost implications due to high cost 04
their specifications
05 Pre-coolers installation on roof Indication on mixing of condensed air 03

floor. heat and pre-cooled air heat transfer due
to installation on adjacent locations
06 Installation of AHU units for - - 05

common areas
07 Installation of Energy Recovery - - 06

Ventilators
RESULT: It is to be noted that the highest-ranking idea or suggestion is the changing of duct shape to circular shape. However,
in order to evaluate the idea as a value engineering proposal, several duct shapes are being taken into consideration.

5.5 Evaluation Phase

In this phase, the ideas and suggestions are further developed but all the ideas are which were
found to be impractical or not worthy of additional study.
In order to ease the process, there is a Matrix Analysis Form that allows to provide numerical
ratings to the subjective analysis which were completed on in creativity phase. It allows team
members to weigh and score many features of each alternative while remaining objective and free
of bias or predisposition toward the alternative in general.
The Matrix Analysis is used to compare many options for a single project function. It is especially
important when there is no clear agreement within the VE team.
A. OBJECTIVES OR CRITERIA
List all the design objectives or performance criteria that apply to the project under study. Weigh
them from 1 to 5 according to their relevance or importance (5 = high and 1 = low)
B. ALTERNATIVES
1. Listing the ORIGINAL item and all the alternatives from the Creativity Phase that
need to be compared. Rate how each of the alternatives satisfies each objective or
criterion, i.e., 1 = poor and 5 = superior. Enter the rating for each alternative in the
top part of the box.
2. TO ELIMINATE BIAS, it is essential to WORK DOWN each column, rating each

alternative according to the same objective or criterion.
3. Multiply the rating by the weight for each combination. Enter the weighted rating in
the lower part of the box.
4. Add the weighted ratings for each alternative together and enter its total score in the
Totals column.
5. Rank the alternatives according to the total score (1 = highest, 2 = second highest,
etc.). Now determine how the alternatives should be used and how they might be
modified to improve the product.

Value Engineering Proposal: Changing the Duct Shape
Preference 4- Highest 3- Medium 2- Minor 1- Lowest
1- Poor 2- Fair 3- Good 4- Very Good 5- Excellent
Figure 5-7: Evaluation Matrix
In conclusion, installation of round shape ducts is more advantageous as a value engineering

proposal which can be derived from the Evaluation Matrix. Hence, for the further
proceedings, Alternative- Installation of Round Shape Ducts is taken.

5.6 Development Phase

During the development phase, the selected idea is expanded into workable solutions.
Development consists of the recommended design, life cycle cost comparisons, and a descriptive
evaluation of the advantages and disadvantages of the proposed recommendations.
Original Design
The following figure shows the original design of the HVAC system which utilizes the rectangular
shape Aluminum foil ducts. Ducts coming from the indoor units installed at the false ceiling level
connect to the terminal equipment such as grilles and louvers.
Figure 5-8: Original design of HVAC system

Proposed Change
Various rearrangements were considered as a means to reduce duct costs. They are briefly and
comparatively ranked on the attached Weighted Evaluation Sheet. As shown, the highest ranked
alternate is based on installation of round ducts for all the HVAC System.
Justification
The duct shape that is the most efficient (offers the least resistance) in conveying moving air is a
round duct, because it has the greatest cross-sectional area and a minimum contact surface. In other
words, it uses less material compared to square or rectangular ducts for the same volume of air
handled.
Calculation for Proving:
An 18 inch diameter duct, for example, has the same air-carrying capacity as a 26” x 11”
rectangular duct. The round duct has a cross-sectional area of 254.5 sq.-in and a perimeter of 4.7
ft., while the rectangular duct has a 286 sq.-in area and a perimeter of 6.2 ft. The rectangular duct
thus has 32% more metal in it and would cost proportionately more. Also the insulation, supports
and labor are higher for rectangular ducts of similar capacity.
Some of the advantages of round ductwork include:
• Round shape results in lower pressure drops, thereby requiring less fan horsepower to move
the air and, consequently, smaller equipment.
• Round shape also has less surface area and requires less insulation when externally
wrapped.
• Round ducts are available in longer lengths than rectangular ducts, thereby eliminating
costly field joints. Spiral lock-seams add rigidity; therefore, spiral ducts can be fabricated
using lighter gauges than longitudinal seam ducts. Spiral ducts leak less and can be more
easily sealed compared to rectangular ducts.
• The acoustic performance of round and oval ducts is superior because their curved surfaces
allow less breakout noise. The low-frequency sound is well contained in round ducts.

• Round ducts can help promote healthier indoor environments. Less surface area, no corners
and better air flow reduce the chance of dirt and grime accumulating inside the duct and,
therefore, becoming a breeding ground for bacterial growth.
While round air ducts have great advantages, there are some disadvantages to them. One of the
most notable drawbacks of round air ducts is that they need more clear height for installation. If
the net clear height of a furred space above a suspended ceiling is 14 inches, an 18-in diameter
duct cannot be installed therein; however, its equivalent 26” x 11” rectangular duct will fit the
space easily. A combination of a rectangular plenum and round branches sometimes is a good
compromise.
Table 14: Circular duct hanging & spacing specifications

5.6.1 Summary Cost Worksheet
Table 15: Summary cost worksheet for original design
Item Original Proposal
Unit Quantity Rate ‘000 Amount ‘000

Primary Equipment
Indoor Air Handling Units Nr 15 850 12,750
IDU VRV Units 10kW Nr 90 266 23,940
Terminal Equipment
Thermostat Nr 126 6.7 844.2
Supply Air Diffusers 300x300 Nr 44 4.3 189.2
Return air grille Nr 100 4.25 425
Supply Air Register 1000x200 Nr 40 3.8 152
Return Air Square Diffusers Nr 50 4.5 225
Pipes
GI Pipes 150mm dia M 280 26 7280
GI Pipes 100mm dia M 875 19 16,625
Ducts
Square Ducts 350x400 M 102 12.4 1264.8
Square Ducts 700x800 M 145 15.6 2262
Square Ducts 600x600 M 50 14 700
Square Ducts Below 300mm M 100 7.9 790
Primary Equipment
Extract Fan Nr 50 40.95 2047.5
Terminal Equipment
Supply Air Diffusers 300x300 Nr 40 4.3 172
Return air grille Nr 75 4.25 318.75

Ducts
Square Ducts 350x400 M 80 12.4 992
Square Ducts 700x800 M 100 15.6 1560
Square Ducts 600x600 M 48 14 672
Square Ducts Below 300mm M 75 7.9 592.5
TOTAL LKR
74,068,950.00
Table 16: Summary worksheet of proposed design
Item Proposed Proposal
Unit Quantity Rate ‘000 Amount ‘000

Primary Equipment
Indoor Air Handling Units Nr 15 850 12,750
IDU VRV Units 10kW Nr 90 266 23,940
Terminal Equipment
Thermostat Nr 126 6.7 844.2
Supply Air Diffusers 300x300 Nr 44 4.3 189.2
Return air grille Nr 100 4.25 425
Pipes
GI Pipes 150mm dia M 280 26 7280
GI Pipes 100mm dia M 875 19 16,625
Ducts
Round Ducts 350x400 M 90 8.4 856.8
Round Ducts 700x800 M 100 12.6 1827

Round Ducts 600x600 M 50 10 500

Round Ducts Below 300mm M 90 5.2 520
Primary Equipment
Extract Fan Nr 50 40.95 2047.5
Terminal Equipment
Supply Air Diffusers 300x300 Nr 40 4.3 172
Return air grille Nr 75 4.25 318.75
Return Air Round Diffusers Nr 34 4.5 153
Ducts
Round Ducts 350x400 M 60 8.4 856.8
Round Ducts 700x800 M 80 12.6 1827
Round Ducts 600x600 M 48 10 500
Round Ducts Below 300mm M 55 5.2 520
TOTAL LKR
71,762,450.00

5.6.2 Summary Life Cycle Cost Sheet
ASSUMPTIONS
Economic Lifetime of HVAC System- 50 years
Net Discount Rate- 10%
Assume Operations and Maintenance Cost for one year is equivalent to 1% of the investment of
ducts.
Replacement Costs
Assume Replacement Cost for particular term is equivalent to 1% of the investment of ducts.
For rectangular ducts- every 10 years, no replacement in last 10 years
For circular ducts- every 25 years, no replacement in last 25 years
Table 17: Summary LCC Worksheet
Item Original Estimate LCC Proposed Estimate LCC

Factor Cost Present Value Factor Cost Present
Value
INITIAL COSTS
Construction cost 1 74,068,950.00 74,068,950.00 1 71,762,450.00 71,762,450.00
Total Initial Cost 1 74,068,950.00 1 71,762,450.00
ANNUAL COSTS
O&M cost 9.91 75,685.00 750,038.00 9.91 52,620.00 521,464.00
For 50 years
Total Annual Costs 750,038.00 521,464.00

REPLACEMENT
COST
For first 0.386 75,685.00 29,214.41 0.092 52,620.00 4,856.61
installment
For second 0.149 75,685.00 11,277.07 - - -
installment
For third 0.057 75,685.00 4,314.05 - - -
installment
For four 0.022 75,685.00 1,665.07 - - -
installment
Total Replacement 46,470.60 4,856.61
Cost
Total LCC Cost 74,865,458.60 72,288,770.61

LCC Cost Saving 2,576,687.99
5.6.3 Summary of Cost Savings
Table 18: Summary of cost saving
Description Original Design Proposed Initial Cost Future Total Cost

Cost Design Cost Saving Cost Saving
Saving
Installation of (74,865,458.60) (71,762,450.00) 2,306,500 270,187.99 2,576,687.99
circular ducts

5.7 Reporting & Recommendation Phase

The last phase of the Work Study phase is the reporting and recommendation phase. The
VE recommendations are further screened by the VE team before the final gathering.
Upon the review of the different alternatives, ranked by preferences, one alternative is selected.
The following topics will discuss further recommendations of the selected alternative.
Executive Summary:
The project is 9 storey apartment complex in Colombo 03 and the proposed system for HVAC is
split ducted system. In order to obtain maximum cost saving for the HVAC system since it has
more cost saving potentials, the client wanted to go for value engineering the designs of the system.
From the cost model, it was found that most cost consuming items were primary equipment and
ducts in HVAC system. However, there were several proposals proposed at the workshop meeting
and there were evaluated using the practicability and cost implications. From that, changing the
duct shape is found to be the viable one to go for further proceedings.
Several alternatives were analyzed using evaluation matrix with the use of criteria for value
engineering in HVAC system and duct systems.
Study Results:
From the initial proposal evaluation phase, the changes to duct shape was selected for further
consideration. Then, in the development phase, using a development matrix, for the proposal of
changing the duct shape, there were several alternatives which were tested at different VE criteria.
Th discussed alternatives were, installation of round ducts, installation of rectangular ducts,
installation of oval shape ducts, and installation of equivalent diameter ducts.
From the matrix, the installation of round ducts obtained higher ranking than others.
After further development of the selected alternative, the cost of original design and proposed
design were calculated. Results are as follows.

Table 19: Results of the original design & proposed alternative
Item Original Proposal Proposed Proposal
Amount Amount
Primary Equipment 38,287,500 38,738,000
Terminal Equipment 2,593,150 1,458,000
Pipes 23,950,000 23,905,000
Ducts 8,833,300 3,184,000
Total 73,663,950 67,285,000
The original proposal cost is Rs. 73,663,950 and proposed proposal cost is Rs. 67,285,000. There
is a cost saving for the alternative proposal and it is Rs. 2,576,687.99.
Considering the Life Cycle Costing, the total LCC saving is Rs. 2,576,687.99
Table 20: Summary of LCC cost savings
Original Proposal LCC Alternative Proposal LCC

Total LCC Cost 74,865,458.60 72,288,770.61
LCC Cost Saving 2,576,687.99
Constraints:
However, there should be proper consideration given to structural hanging of the round
ducts into the ceiling. Another constraint is that proper duct joints should designed priorly
to the value engineering approval.
Highlights:
The alternate proposal for installation of round ducts to the entire HVAC system gives
Life Cycle Cost saving of 2,576,687.99 rupees.

5.8 Post Workshop Phase

5.8.1 Plan for Execution
Table 21: Plan for work execution for selected alternative
Activity Work Plan

Procurement of Materials Specify the quantity and specifications of circular
ducts required
Identify suppliers and obtain quotations for materials.
Scheduling and Coordination Establish a timeline for duct installation
Coordinate with other trades to ensure smooth
execution
Site Preparation Ensure necessary permits and permissions are
obtained
Prepare the site for duct installation, including
clearing obstructions
Duct Installation Allocate resources for skilled labor and equipment
Follow industry standards and guidelines for
installation
Quality Assurance Implement checks to ensure proper sizing and sealing
of ducts.
Conduct inspections at various stages of installation.

5.8.2 Proposal for Following Up Activities
Table 22: Proposal for follow up activities
Follow-Up Activity Description

Airflow Testing Conduct airflow testing within the newly installed circular
ducts to ensure that desired airflow rates are achieved without
excessive pressure drops or turbulence.
Pressure Testing Perform pressure testing to verify that the circular ductwork is
adequately sealed and does not leak, which could result in
energy inefficiency or reduced system performance.
Temperature Distribution Analysis Assess the temperature distribution throughout the HVAC
system to ensure uniform comfort levels in all areas served by
the circular ductwork.
Scheduled Inspections Implement a schedule for regular inspections of the circular
ductwork to check for any signs of wear, damage, or
degradation that could affect performance.
Cleaning Regimen Establish a cleaning regimen for the circular ducts to prevent
the buildup of dust, debris, or microbial growth, which can
impede airflow and reduce indoor air quality.
Vibration Analysis Monitor for excessive vibration or noise in the circular
ductwork, which could indicate issues such as loose
connections or improper support.
Energy Efficiency Optimization Continuously monitor energy usage and system performance
to identify opportunities for further optimization, such as
adjusting fan speeds or optimizing duct layout.
Feedback Collection Solicit feedback from building occupants and maintenance
staff to identify any comfort issues or operational challenges
associated with the new circular ductwork.
Ongoing Training Provide training to maintenance personnel on the proper
maintenance procedures and troubleshooting techniques
specific to circular duct systems.
As-Built Drawings Update Update the as-built drawings and documentation to reflect the
changes made to the HVAC system, including the installation
of circular ductwork and any associated modifications.
Maintenance Records Maintain detailed records of all maintenance activities
performed on the circular ductwork, including inspections,
cleanings, repairs, and replacements.
Performance Reports Generate regular performance reports summarizing airflow
measurements, pressure test results, energy consumption data,
and any other relevant metrics to track the ongoing
performance of the HVAC system.

6 Conclusion
Value engineering is a methodical procedure designed to enhance the value of a product and
it emphasizes enhancing value while maintaining affordable costs (Bigrentz, 2020). In terms of the
construction industry value engineering is the most essential concept because of the higher cost of
construction and specially in recent times due to volatile market and price increments. Therefore,
this study was conducted to identify and assess the Value Engineering for the HVAC system in a
building.
The study has identified the HVAC system in detail of components, functions, and all about the
system. Furthermore, has demonstrated the concept of value engineering and how it applies to the
HAVC system through the literature findings including criteria, energy Consumption, CO2
emission, noise level for environmental, ease of maintenance, ease of installation, vendor
availability for technical, capital cost, lifetime, maintenance cost for economical and thermal
comfort, ventilation, indoor volume requirement, outdoor appearance, indoor appearance for socio
functional criteria. Also, identified the methods of VE for the system as replacing air-cooled
chillers with water-cooled chillers, using round ducts, replacing Aluminium grilles with GI grilles,
replace the control panel indoors instead of outdoors. In addition to that, the application of VE for
functional analysis of the system is a major area that has identified techniques such as Function
Analysis System Technique (FAST), Function Tree, Value Index (function cost/function worth)
and function cost matrix.

References
Atabay, S., & Galipogullari, N. (2013, December 8). Application of Value Engineering in
Construction Projects. Journal of Traffic and Transportation Engineering, 1(1), 39-48.
doi:http://dx.doi.org/10.17265/2328-2142/2013.12.005
Barone, A. (2023, August 28). Value Engineering: Definition, Meaning, and How It Works.
Retrieved from Investopedia: https://www.investopedia.com/terms/v/value-
engineering.asp#:~:text=Value%20engineering%20promotes%20the%20substitution,is%
20also%20called%20value%20analysis.
Bigrentz. (2020, August 24). What Is Value Engineering in Construction? . Retrieved from
Bigrentz: https://www.bigrentz.com/blog/value-engineering-construction
Chaoudhary, A. (2017, September 7). Working of HVAC System and Its Function. Retrieved from
Pharmaguideline: https://www.pharmaguideline.com/2017/09/working-of-hvac-system-
and-its-functions.html
Gordian. (2024, January 9). Value Engineering for Construction: A 6 Step Methodology. Retrieved
from Gordian: https://www.gordian.com/resources/value-engineering-for-construction/
Kumar, P., Meenu, & Shubham. (2019, Juune 8). Types of Heating, Ventilation and Air-
Conditioning System. Journal of Emerging Technologies and Innovative Research
(JETIR), 6(6), 44-52. Retrieved from https://www.jetir.org/papers/JETIR1906008.pdf
Miles, L. D. (2022, November 16). Value Engineering in Construction: An In-Depth Guide.

Retrieved from Flex: https://www.flex.one/construction-resources/value-engineering-in-
construction
Moor, T. (2023, August 16). What Are the Key Parts of an HVAC System? Retrieved from
HVAC.com: https://www.hvac.com/expert-advice/key-parts-of-an-hvac-system/
Naderpajouh, N., & Afshar, A. (2008, April 7). A case-based reasoning approach to application of
value engineering methodology in the construction industry. Construction Management
and Economics, 26(4), 363-372. doi:10.1080/01446190801905398

Quantity Surveyor Blog. (2019, September 23). 6 Steps of Value Engineering Methodology.
Retrieved from Quantity Surveyor Blog: https://quantitysurveyor.blog/2019/09/23/6-steps-
of-value-engineering-methodology/
Rad, K. M., & Yamini, O. A. (2016, June 7). The Methodology of Using Value Engineering in
Construction Projects Management. Civil Engineering Journal, 2(6), 262-269.
doi:10.28991/cej-030986
Ramzy. (2023, March 7). HVAC System Components Made Easy. Retrieved from linquip:
https://www.linquip.com/blog/hvac-system-components/
Trane Company. (2024, January). What is HVAC? Retrieved from Trane:

https://www.trane.com/residential/en/resources/glossary/what-is-hvac/
Twain, H. (2023, October 9). What Are The Main Functions Of An HVAC System? Retrieved from
Jetairco Medium: https://jetairco.medium.com/what-are-the-main-functions-of-an-hvac-
system-9a27d28d246f
Zhen, Y. C. (2024, January). HVAC Value Engineering Ideas (10 Tips). Retrieved from Air
Condlounge.com: https://aircondlounge.com/hvac-value-engineering-ideas/

Appendices
Idea Simulator Checklist

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BE4407

Construction Economics III

Conducting Value Engineering Workshop for MEP

Student Name(s) Reg. No.

Aberathna P.G.S.A. 192601T

Module Lecturers: Dr. Thanuja Ramachandra

Date of Assignment : 04.01.2024

Department of Building Economics

Degree programme title BScHons in Quantity Surveying

BE4407 - Construction Economics III

Dr. Thanuja Ramachandra, Dr. Sachie Gunathilake, Dr.

Module Moderator Dr. Menaha Thayaparan

Conducting Value Engineering Workshop for MEP

Students names / Signatures (Signatures not needed for Moodle Submissions)

Stamp for date receipt of the assignment (if applicable)

Conducting Value Engineering Workshop for MEP Services

1. To enhance students’ theoretical knowledge with respect to the value engineering

• Pre-Workshop (selecting the team, reviewing the scope of work, determining

Interim Evaluation-Role Play

• Students shall work in groups of a maximum of five (05) members in each.

ROLE PLAY FEEDBACK SHEET

Distribution of Role Play activities

Knowledge and comprehension

Presenting and acting skills

Maximum marks 10 20 15 05 20 30 100

Coverage of Value Engineering Approaches

Comprehensive plan for execution)

Organization and Structure of the Report

Citation and Referencing

Use of appropriate body

talking in front of the audience

Presentation without reading from

Dr. Thanuja Ramachandra

Moderated by Dr. Menaha Thayaparan

Signature MT Date 12.01.2024

Plagiarism, Cheating and Collusion

RULES WILL BE STRICTLY ENFORCED

Department of Building Economics i

Table of Contents ...................................................................................................................................... ii

Table of Figures ........................................................................................................................................ iv

List of Tables ............................................................................................................................................. v

2 Overview of the HVAC System ........................................................................................................ 2

2.1 Purpose of Value Engineering (VE) .......................................................................................... 4

2.2 Value Engineering Proposals for HVAC System ...................................................................... 6

2.2.1 Replacing air-cooled chillers with water-cooled chillers. ................................................. 6

2.2.2 Using Round Ducts ........................................................................................................... 7

2.2.3 Replacing Aluminium Grilles with GI Grilles .................................................................. 8

2.2.4 Placing the Control Panel Indoors Instead of Outdoors .................................................... 8

3 Value Engineering Criteria for HVAC System ................................................................................ 10

4 Value Engineering Techniques Used for Functional Analysis ........................................................ 13

4.1 Function Analysis System Technique (FAST) ........................................................................ 14

4.1.1 Function Tree................................................................................................................... 15

4.1.2 Function-Cost Matrix ...................................................................................................... 17

4.1.3 Value Index (function cost/function worth) .................................................................... 18

5 VALUE ENGINEERING CASE STUDY – HVAC SYSTEM ....................................................... 20

5.1 Pre-Study Phase....................................................................................................................... 21

5.1.1 Project Overview & Scope Selection .............................................................................. 21

5.1.2 Value Engineering Team Members ................................................................................. 22

5.1.4 Cost/Worth Ratios for HVAC Systems ........................................................................... 24

5.1.5 Proposed Time Frame for Work Sjop .............................................................................. 26

Department of Building Economics ii

5.2 Workshop Phase ...................................................................................................................... 28

5.2.1 Information Stage ............................................................................................................ 28

5.2.2 General Project Details.................................................................................................... 28