Value Engineering is a conscious and explicit set of disciplined procedures designed to seek out optimum value for both initial and long-term investment. First utilized in the manufacturing industry during World War II, it has been widely used in the construction industry for many years.
Value Engineering (VE) is not a design/peer review or a cost-cutting exercise. VE is a creative, organized effort, which analyzes the requirements of a project for the purpose of achieving the essential functions at the lowest total costs (capital, staffing, energy, maintenance) over the life of the project. Through a group investigation, using experienced, multi-disciplinary teams, value and economy are improved through the study of alternate design concepts, materials, and methods without compromising the functional and value objectives of the client.
At the Planning stage of development, there are additional benefits to be derived from a Value Engineering Workshop. An independent team can:
- Review the program
- Perform a functional analysis of the facility
- Obtain the owner/users definition of value
- Define the key criteria and objectives for the project
- Verify/validate the proposed program
- Review master plan utility options (e.g. Central Utility Plant versus individual systems)
- Offer alternative solutions (square footage needs per function, adjacency solutions, etc.)
- Verify if the budget is adequate for the developed program