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Value Engineering

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Value Engineering

Загружено:

Leon Fourone
Авторское право
© © All Rights Reserved
Мы серьезно относимся к защите прав на контент. Если вы подозреваете, что это ваш контент, заявите об этом здесь.
Доступные форматы
Скачать в формате PDF, TXT или читать онлайн в Scribd

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Volume 1 Introduction and Overview �
Volume 2A GeoHazard Assessment Table 2-1 Worldwide Development of Value Methodology ..................................................................................... 2-1
Table 2-2 Examples of VE Study Outcomes (FHWA3)................................................................................................. 2-4
Volume 2B Engineering Surveys
Table 2-3 Weighting Evaluation ......................................................................................................................................... 2-10
Volume 2C Geological and Geotechnical Investigations
Table 2-4 Ranking Ideas ........................................................................................................................................................ 2-11
Volume 3 Water Engineering Projects Table 2-5 Example Using a Weighting Matrix .............................................................................................................. 2-27
Volume 4 Highway Design Table 2-6 Evaluation Scorecard.......................................................................................................................................... 2-28

Volume 5 Bridge Design


Volume 6 Public Buildings and Other Related Structures Figure 1-1 Opportunity – Cost – Time Schematic ........................................................................................................... 1-3
Figure 2-1 Generic FAST Diagram ......................................................................................................................................... 2-8

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A Examples of Value Engineering � �
B Examples of Functions and Modifiers
C Examples of FAST Diagrams
D Discounted Cash Flows and Recurring Cost
E Checklist
F Creative Blocks
G Reason for Unsatisfactory Result
H Terms of Reference for Hiring Value Engineering Consultants

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Abbreviation� Definition� Acronym  Definition 

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1� Introduction 1.2  Definition of Value Engineering and Methodology


Value Analysis was conceived during the Second World War, initially to tackle the
1.1  The Purpose of Value Engineering problem of shortages of strategic materials.

This Guide draws on the content of the NEDA Value Engineering Handbook Products were examined and options to replace materials in shortage with
(NEDA, 2009) and maintains consistency with the requirements of that different materials were developed. This soon led to real VA and the concept of
handbook, whilst focusing on activities relevant to DPWH and other agencies value:
involved in infrastructure and building works. The GOAL Value Methodology Value = Function/Cost
Pocket Book (GOAL, 2008) has also been drawn on in drafting this Guide.
From this simple equation we can see that value can be increased by:
VE is the most effective technique known to improve value, and eliminate
unnecessary costs in product design, testing, manufacturing, construction, a)� removing any part or activity which does not contribute to the intended
operations, maintenance, data, and processes and practices. While its application function
to processes and practices is less well known, effectiveness in this area has been b)� providing the same functionality for less cost
highly successful.
c)� improving the functionality for the same cost
Saving money and, at the same time, providing better value is a concept that
From VA the ideas of VE were developed and have become fully institutionalized
everyone can support. The benefits of optimizing infrastructure expenditures,
in the United States in the subsequent decades. Elsewhere in the world the term
constructing more with less money, increasing efficiency and reducing the
VE was considered less suitable to encourage adoption and the use of Value
amount of resource use must be recognized today and pursued in the future.
Management or VM has become more common. American practice is now to refer
In the constant battle to find a better way to fight inflation, validate cost estimates, to VA/VE, and also more broadly to Value Methodology or VM. This Guide adopts
and assure all stakeholders that the solutions being proposed are cost effective, SAVE terminology and the use of the term VE.
the application of VE comes to the forefront, for both government and private
VE, as defined by the Society of American VE International, is "the systematic
decision-makers. VE is a proven technique used to combat runaway costs and is
application of recognized techniques by multi-disciplined team (s) that identifies
a process proven by countless owners, manufacturers and government entities.
the function of a product or service; establishes a worth for that function;
More specifically, VE is defined by an international certification body (SAVE
generates alternatives through the use of creative thinking; and provides the
International) as: "the systematic application of recognized techniques by multi-
needed functions, reliably, at the lowest overall cost".
disciplinary team(s) that identifies the function of a product or service;
establishes a worth for that function; generates alternatives through the use of VE may be defined in other ways, as long as the definition contains the following
creative thinking; and provides the needed functions, reliably, at the lowest three basic precepts:
overall cost". � An organized review to improve value by using multi-disciplined teams of
Section 1 of this Guide provides an introduction to VE and Section 2 provides a specialists knowing various aspects of the problem under study.
discussion on fundamentals of VE including history, benefits, techniques, and a � A function-oriented approach to identify the essential functions of the system,
complete procedure for conducting a Value Study. Section 3 describes the phases product, process or service being studied and costs associated with those
of a project and how VE can be applied in each phase. Section 4 deals with the functions.
selection of projects for VE. Section 5 provides a procedure for hiring and � Creative thinking, which uses recognized techniques to explore alternate
managing of VE Consultants. ways of performing the functions at a lower overall cost or otherwise improve
the design, process, service, or product effectiveness.
The Guide provides specific guidance for analyzing VE studies to assure that the
studies have been accomplished in accordance with internationally accepted VE is predicated on the proposition that people spend their money on
standards and practices. Most importantly, the information included in these accomplishing functions rather than simply obtain ownership. Concern for our
chapters provides basic guidance in certifying that the study was accomplished environment, energy and rising costs, requires that the functional needs of safe
under the direction of a qualified expert, was accomplished by a multi- and efficient project implementation be carefully analyzed to obtain these
disciplinary and certified team of bona fide experts, and was performed following functions in the most economical manner, with minimal disturbance to the
the Job Plan. The Job Plan is an internationally defined and accepted analytical environment.
process for VE. VE is often considered a management tool for cost control. In practice, however,
it really is a step-by-step process used in problem solving or in improving a
product or process.

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then tasked with developing the alternative ideas and costing them. Whole Life
Costing approach is incorporated into the VE system.
The details of the workshop, the involvement and background of the facilitator,
the scope of the VE and other detail varies both by country and by individual
project. However the fundamental requirement is a facilitated structured
engineering by an appropriate knowledge group, adequately briefed on the
project, with clear goals and identified outcomes.
In order to deliver VE successfully there needs to be a culture within the
organization and its consultants of “no blame”. It must be understood before the
VE process starts that the benefits of VE outputs come from the combined efforts
of the whole team, and that the original concept or detailed designs will change
during the VM process. If the original designer is considered blameworthy for
failing to identify the potential improvements, then the system will be resisted
and its success will be compromised.
Where external consultants are involved in the design process, they must under
their contract:
� Be required to take part in value workshops.
� Be required to undertake assessments, redesigns and costing of the
alternatives identified during the VM process.
� Accept responsibility for the revised design.
� Be recompensed for the additional work they undertake.
If the outcome of the VE process identifies that the original design was below a
reasonable standard then that issue should be dealt with completely separately
and subsequently, so as not to damage the positive approach required in the VE
process.

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2� Fundamentals of Value Engineering


2.1  History of Development
Lawrence D. Miles, an engineer who was employed in the Purchasing
Department at General Electric, conceived VA in the 1940s. He focused on the
functions of manufactured components and created the process of function
engineering, which evolved into a formal practice called VE.
The benefits of VA became readily apparent and the technique was adopted by
many organizations and government agencies during the 1950s. Many
applications beyond product design were developed during the early growth of
the Value Methodology.
The Society of American Value Engineers was incorporated in 1959. The name of
the value society was changed to SAVE International in 1996 to reflect the
worldwide growth of the field of Value Methodology. The Value Methodology
spread out from America in two ways: through the private sector (initially the
car industry to Japan, Korea, India) and through public sector infrastructure. An
estimated chronology of the spread is shown on Table 2-1.

Table 2­1  Worldwide Development of Value Methodology  

    Country  Year 

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Many individuals and corporations have contributed greatly to the practice of VE


by developing related techniques. These include:
� Function Analysis System Technique (FAST) Diagram, which was created by
Charles Bytheway during the 1960s.
� Target Costing, which originated at Toyota in 1959.
� Quality Function Deployment which was introduced by Yoji Akao in 1966.
� Zero and First Look VE in new product development.
� VA/VE Tear-down, which General Motors and others developed as a
competitive-engineering during the 1960s and Isuzu further refined during
the 1970s.

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reduce non-essential features and lessen the life cycle costs of the projects
without sacrificing the quality and integrity of the structure, while maintaining
its essential function, performance, and safety.

The Philippine Development Plan 2011-2016 states:


……. the following policy reforms shall be implemented:
� Strengthening the capacity of NEDA and other government agencies in VE /
VA and Risk Engineering and Management to ensure that infrastructure
projects are not over-designed or over-specified and to minimize cost-
overruns, project implementation delays, and changes in scope of works;
� Incorporation of VE/VA and Risk Engineering in the guidelines and processes
of the NEDA ICC;
These reforms were recommended under the 2009 Philippines-Australia
Partnership for Economic Governance Reforms (PEGR)-funded Reform Agenda
006-07 on Institution Strengthening of the NEDA and other oversight agencies
on VE, contract preparation, and performance monitoring of infrastructure
projects.
It also notes that:
Development initiatives across infrastructure subsectors shall be coordinated
and integrated. Intended outcomes are better realized if there is a coordinated
and integrated strategy for infrastructure initiatives.
The development and institutionalization of VE within DPWH will therefore
clearly contribute to the development goals of the country.

2.2  Benefits of Value Methodology to an Organization


Benefits of the VM process are normally expressed in terms of cost savings,
though this should not be the only measure.
Experience in the United States is that a VE study can generate recommendations
to eliminate between 10% and 30% of the project's construction costs. The
designer/ user usually accepts about half of these recommendations, providing
a cost avoidance of at least 5% (FHWA, 2007). Historically, the cost of a VE study
is usually less than 10% of the implemented savings, giving a benefit/cost ratio
of around ten.
The FHWA in the United States collects information annually on VE
accomplishments achieved within the Federal-aid Highway Program, including
the projects administered by Federal Lands Highway. For VE studies conducted
during the design phase of projects, the FHWA tracks the number of studies
conducted; proposed and implemented recommendations. A summary of the VE
study outcomes for the period 2008 – 2012 is shown in Table 2-2. Additionally,
similar information is compiled for the VE change proposals (VECP) that are
submitted by contractors during the construction of the projects. For 20122, the
average savings reduced to 3.8%; however, the most notable statistic is the
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� The system of defining a function in two words, a verb and a noun, is known
as two-word abridgment. This abridgment represents a skeletal presentation
of relative completeness. Advantages of this system are that it forces
conciseness and avoids combining functions or attempting to define more
than one simple function at a time.

2.3.3.3  Modified Definition of Function(s)


The definition of a function as a two-word abridgment is standard practice.
However, there are cases when functions may be defined in more than two words,
provided that a clear definition of the function is the end result. It is permissible
to use a compound or a combination of adjectives, participles, or nouns if they
result in better understanding of the function by the team members.
Examples of the uses of modifiers are shown below:
� Adjective: Generates electrical power
� Participle: Protects recording mechanism
� Noun: Measures hydraulic flow rate
Further examples of appropriate verbs and nouns are given in Annex B.

2.3.3.4  FAST Diagram


In 1964, Charles Bytheway developed a system for function analysis that has
become known as the Function Analysis System Technique (FAST). This
diagramming technique has been widely used since 1965 by value engineers
throughout the world as a tool to correctly identify the interrelationship of the
functions under study.
As in the case with most VE tasks, the development of a FAST diagram is best
accomplished as a team effort. The interplay of different viewpoints leads to
deeper thinking about the subject and, therefore, a more thorough conduct of the
information phase in the Job Plan.
The preparation of a FAST diagram of, at least, the first choice alternatives during
the Design Development Phase, allows for a re-examination of the solution.
Rethinking at this point can identify areas for additional savings that may have
been overlooked. A comparison of the FAST diagram for the original design and
that of the proposed alternative can be a valuable sales tool during the
presentation phase. A FAST diagram has great value as a communication tool,
because it is stated in functional terms that almost everyone can understand, no
matter how technical or complex the item may be.
As shown on Figure 2-1, the FAST diagram identifies the breakdown of functions
starting on the left with HOW a function is achieved, and on the right with WHY it
is required. The scope of the problem needs to be defined at an early stage so that
the analysis does not wander outside its required boundaries.

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conditions versus lower costs, but increased safety over the minimum Prepare a scoring matrix as shown on Table 2-3. 
required safety versus cost.
� Cost may be a criterion, but it is not recommended since all proposals must Table 2­3  Weighting Evaluation 
also pass a business case evaluation.
2.� Define the criteria so all team members understand them. SCORING MATRIX
� The more elements of criteria that are compared to each other, the better. This
reduces the chance that one or two elements will receive such weight that they
swing or govern the decision regardless of how the other elements score. B C D E F G H
3.� List all the criteria on the evaluation form, assigning each a letter of the A A-2 A/C A-2 A-3
alphabet as shown in the Table 2-3.
B B/C B-3 B/E
4.� Use a paired comparison to determine the weight to be used for each criterion.
Paired comparison is a technique based on the understanding that any person C C-3 C/E
or group of people can select between any two items or, if they cannot choose,
can call them equal in importance. D E-3
� Compare each criterion to another in turn. First, ask which is more important,
E
A or B. In the example of initial cost versus maintenance, the answer is A.
� Next, ask how much more important that answer is, rating it major, medium,
F
or minor - that is, giving it three, two, or one points. Again, in the example,
initial cost A is medium in being more important than maintenance and is thus G
recorded in the scoring matrix as A-2.
� Continue to compare A with C, then A with D, and so on, until all criteria are
compared with each other and recorded in terms of their importance. Note
that, in the example, when B is compared with C, a choice cannot be made DETERMINATION OF WEIGHTS 
between them, so the selection is recorded in the scoring matrix as B/C.
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maximum performance levels, or between needs and desires, with the intent � � �
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or make tradeoffs.
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5.� Add the total number of each letter of the alphabet recorded in the scoring
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matrix. This is the raw score of the weight for each of the criteria selected. For
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example, on the first row of scoring matrix, criteria A have scored 2, 1, 2 and ������������������� �� ��
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3 giving a total of 8. So the number 8 is transferred to the Weighting ����������������� 1  ��
Evaluation Table under column ‘Raw Score’ against the row ‘A Initial Cost’. ������������������������������ �� ��
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If one criterion receives a zero score, it means that the attribute is not �� �
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important to the team in evaluating the idea, and it can be dropped from
further consideration. If, however, the team disagrees with this automatic
conclusion, giving it a raw score of one can save the evaluation criteria. This is
demonstrated in Table 2-3. Notice the Raw Score for criterion D “Aesthetics”
has a value of “1” even though “D” does not appear in the scoring matrix.
6.� Reviewing the raw score, determine the weight of importance of each of the
criteria on a scale of one to ten, with ten being the highest and one being the
lowest. Remember that not all criteria are created equal.

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Construction cost is simply the cost to construct the item. Identify this during the
investigation phase of a VE study, usually from the construction estimate. If an
item is purchased rather than constructed, use the purchase cost of the item.
Operation and Maintenance (O&M) costs are the costs associated with owning,
maintaining, operating, and using an item, or system. There are two types of O&M
costs, recurring and non-recurring. Recurring O&M costs are ordinary, routine,
repetitive maintenance expenses. On a highway, they include grass-cutting,
replacing traffic markings, and the cost of electricity for lights, drainage
maintenance, and guardrail maintenance. Consider these costs as a lump sum,
annual payment. Non-recurring O&M costs include replacement or irregular
activities, such as resurfacing a highway, re-decking a bridge, and crack and joint
sealing. Consider these costs individually.
Salvage Value is the value of selling or re-using items and material at the end of
the life cycle. For example, some items with salvage value are guardrail, recycled
pavement, bridge beams, rails, etc.
Another type of salvage value occurs when a highway’s life cycle is completed, and
a major reconstruction is undertaken. The salvage value of the old road would be
the right of way, grading, sub-base, etc., that will not have to be purchased or
performed for the reconstruction.
Perhaps the most difficult part of life cycle cost engineering to understand is the
time value of money. Put simply, money in the future is not as valuable as money
today. This has nothing to do with inflation, but with the flexibility of having the
money now, and the opportunity costs of not having the money now. The adopted
discount rates vary considerably from country to country; NEDA uses 15%. That
means that the value of a peso decreases by 15% for every year in the future. For
example, one peso in one year is worth PHP0.85 today.
Over the life cycle of different items or systems, costs are incurred at different
times. Because of the time value of money, it is not fair or consistent to compare
these costs at face value. For a fair comparison, refigure costs to today's pesos, by
applying a discount rate to bring future costs back to their value today.
To find the Life Cycle Cost of an item or system, the following steps are generally
followed:
� Identify the expected life of the project element. This can be based on
background information, experience, policy, or by arbitrarily selecting an
expected life.
� Identify construction costs of all alternatives. In most cases, this information
will be provided. If not, find it during the investigation phase of the VE study.
� Identify recurring maintenance costs by year. This information is available
from maintenance staff, repair records, material usage, or accounting records.
� Identify non-recurring maintenance costs by year. This information is also
available from maintenance staff, repair records, material usage, or
accounting records.
� Identify salvage values, if any. For items such as right of way, grading, etc., the
initial cost can be used for the salvage value. Other items may require an
estimate on the part of the VE study team.

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when. They keep their finger on the pulse and know when to move on or bring
closure. Most important, facilitators help members define and reach his/her
goals.
When someone takes up the challenge of facilitating, they’re stepping into a very
clearly defined set of roles and responsibilities. These roles are:
� To help the group define its overall goal, as well as its specific objectives.

� To help members assess needs and create plans to meet them.

� To provide processes that help members use their time efficiently to make
high quality decisions.
� To guide group discussion to keep it on track.

� To make accurate notes that reflect the ideas of members.

� To help the group understand its own processes in order to work more
effectively.
� To make sure that assumptions are surfaced and tested.

� To support members in assessing their current skills as well as build new


skills.
� Using consensus to help a group make decisions that take all members’
opinions into account.
� To support members in managing their own interpersonal dynamics.

� To provide feedback to the group so that they can assess their progress and
make adjustments.
� To manage conflict using a collaborative approach.

� To help the group communicate effectively.

� To help the group access resources from inside and outside the group.

� To create an environment where members enjoy a positive, growing


experience while they work to attain group goals.
� To foster leadership in others by sharing the responsibility for leading the
group.
� To teach and empower others to facilitate: working oneself out of a job.

The main theory underpinning facilitation concerns the difference between


process and content. This theory states that in any interaction between people,
there are always two dimensions, the content and the process.
The content of any meeting is what is being discussed. It’s the task at hand, the
subjects being dealt with, and the problems being solved. The content is expressed
in the agenda. The content is the verbal portion of the meeting. It is obvious and
typically consumes the attention of the members.
The other element of any interaction is the process.
The process is how things are run. It refers to the methods, the procedures, the
format and the tools used. The process also includes the style of the interaction,

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actual arrangement of the room may be flexible based on the type of study, table
shape and size, and room shape. Generally, however, tables arranged at a forty-
five degree angle to the front of the room are useful because the team members
can easily see information projected on a screen or wall and face each other. In
all cases, it is useful to have natural lighting/ windows, computer Internet access,
and temperature control. It is the facilitator's responsibility to arrange the room
prior to the workshop to accommodate the group and visitors.

2.4.4.3  Required Materials and Logistics


In order to properly facilitate a VE study, materials and logistical support are
required, including:
� Computer
� Projector and screen
� Flip charts, stands, pads and marker pens
� Tape and thumb tacks
� Sticky notes
� Extension cords
If they are not available, the VE facilitator will provide these items. Inquire what
will be allowed on the walls of the workshop room so the paint or wall coverings
are not damaged.

2.4.4.4  Facilitation Skills


A certified value professional should be chosen to facilitate a VE workshop since
he/she has the training and experience to manage the team, implement the
methodology, and maximize the benefits to the client and customers. During the
pre-workshop coordination meeting, the facilitator will establish the workshop
guidelines, which may include items such as:
� Requiring workshop attendance at agreed-upon times (some team
members' participation may not be necessary for the full workshop).
� Requesting that non-workshop related e-mail, Internet, and phone usage
occur during breaks and lunch.
� Eliciting participation and consensus from all team members.
� Maintaining the agenda and being punctual about starting times.
� Encouraging the team members to contribute to the preparation of the
management presentation and participate in the presentation of results.
The VE facilitator should follow each step of VE. The effectiveness of the study
will be enhanced if each phase is implemented. Activities and tools that should
be included in a VE study include:
� Reviewing competitive products, processes, or projects for comparative
purposes.
� Reviewing other value models, such as time study, cost, life-cycle cost, space,
quality, risk, and sustainability models.
� Performing functional analysis.
� Preparing FAST diagrams.
� Creating a cost/function diagram or similar relational technique.

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The basic function of a design element satisfies the user's need for having an
action performed. The secondary function may or may not support the basic
function. An aesthetic or esteem function fulfills a desire to form something more
than what is needed.
These functions are not mutually exclusive and are frequently present in designs.
Good value occurs when the user is provided with the essential functions, and
the unessential ones he desires, at a reasonable cost.
An outline of the Information Phase is given in Checklist 1 and further checklists
on information gathering, general information, engineering and design, methods
and processes, material and procurement and function and worth are given in
Checklist 2 to 8 in Annex E.

2.4.5.3.1  Understand the Item, System, or Operation Under Study


There are three important actions to take in order to fully understand the VE
study that must be done:
� Gather all Types of Information
� Get the Facts
� Get all Available costs
Gather all Types of Information. The VE team should gather all relevant
information, regardless of how disorganized or unrelated it may seem when
gathered. The data should be supported by credible evidence, where possible.
Where supported facts are not obtainable, the team should obtain the opinions
of knowledgeable persons. The information sought is seldom found in
comprehensive form in one place. The by-word for any VE study is "Record
Everything."
Information gathering may be subdivided into separate tasks and assigned to
individual team members. Various types of data, which may be obtained, are
listed in Checklist 2 in Annex E.
The team should obtain information from credible sources. There are two basic
principles in this area. The first is to seek information from multiple sources, and
the second is to seek the best source for the information desired. The following
are typical sources from which the required information might be obtained:
People Source. Project managers, designers, operators, maintenance, architects,
contractors, fabricators, suppliers, and expert consultants.
Data Source. Planning documents, drawings, computations, design analyses and
calculations, specifications, material lists, cost estimates, schedules, handbooks,
engineering and maintenance manuals, commercial and government standards
and codes, test and maintenance reports, user feedback, catalogs, technical
publications, previous study data flies, management information systems,
conference and symposium proceedings, and universities.
Complete, Pertinent Information. The type of data available will depend upon
the status of the design in its overall life cycle that is whether it is in preliminary
or final design or under construction.

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A set of design objectives and a statement of requirements may be all that is essential to good value. Value engineers look beyond initial cost. The costs of
available early in a project cycle. For an older, standard design, such useful data operation, maintenance, and disposal or replacement must also be considered.
as performance under use, maintenance characteristics, failure rates, and
A complete life cycle cost model should include an engineering of the following
operational costs may be available. In addition to specific knowledge of the
items calculated in terms of present value:
project, it is essential for the team to have all relevant available information
concerning the technologies involved, and to be aware of the latest applicable � Capital cost - initial cost of construction, design, land, legal fees, other related
technical developments. The more that factual information is brought to bear on costs.
the problem, the higher the possibility of a substantial cost reduction. � Maintenance cost - the cost of regular maintenance patrol, repair, salaries of
maintenance personnel, and maintenance contracts.
Get the Facts. Get specific information about the item. Avoid generalities, which
� Rehabilitation / replacement cost - the cost of replacing materials,
serve only to protect the status quo. Work on each function individually before
equipment or other elements during the life cycle of the entire facility.
attempting to combine them into a single multi-functioning project. The danger in
a generalized statement is that if one exception can be found, the statement is Refer to Checklist 8, Annex E for detailed requirements of the Information on
proven wrong. If the proposal depends upon a generalized statement, the validity Function and Worth.
of the entire study could be compromised.
2.4.5.5  Phase 3: Creativity Phase
Get all Available Costs. To make a complete analysis of any project, the total cost
of the item, the cost of each component and a breakdown of the cost of each design The objective of the creativity phase of the VE job plan is to "brainstorm" the
component that are needed. functions of design elements identified in the Information Phase, and develop a
number of alternatives to each. An outline for the Creativity Phase is:
The team should obtain accurate and itemized cost estimates for each proposed
design to determine the alternative offering the greatest cost reduction. � Understand and control the positive and negative factors in creative
thinking.
� Plan for creative sessions.
2.4.5.4  Phase 2: Function Analysis Phase
� Select the creative techniques to be used.

2.4.5.4.1.1  Determine Functional Cost And Worth


2.4.5.5.1  Positive and Negative Factors
Functional Cost The results achieved through the use of creative thinking, especially
brainstorming techniques, will vary with the creative ability of the individual.
Functional cost is the method chosen to perform the function under consideration.
However, one can enhance one's creativeness through conscious effort toward
Where an item serves one function, the cost of the item is the cost of the function.
the development of attributes such as those listed below:
However, where an item serves more than one function, the cost of the item
should be pro-rated to match each function. � Observation: Alertness and awareness of conditions that exist.
� Problem Sensitivity: The ability to recognize when there is a problem.
Functional Worth � Constructive Discontent: An attitude of questioning the status quo.
Worth is the most inexpensive way to perform a function. Once all functions are � Motivation: Willingness to expend the time and energy to reach a given goal.
identified as basic or secondary and unnecessary functions discarded, the team � Flexibility: Adaptability and openness to change.
establishes the worth of a function, without considering where or how the � Originality and Resourcefulness: The ability to conceive a great number of
function is used. Functional worth determination is perhaps the most difficult step new and unique ideas that reaches beyond everyday solutions.
in VE, but it is an indispensable step. There are also factors that inhibit the creative process. One should recognize
It is a highly creative endeavor because worth is a subjective rather than absolute such mental blocks and make an effort to eliminate them from one's thinking.
or objective measure. Skill, knowledge, and judgment play a major role in These blocks to creativity are outlined in Annex F.
determining the quantitative aspect of worth, in terms of pesos.
2.4.5.5.2  Plan for Creative Sessions
Life Cycle Cost Model During the creativity phase of the job plan, direct the team's creative effort
Throughout the VE job plan, the team should keep in mind that value is towards the development of alternative means to accomplish the needed
maximized when performance is reliably achieved for minimum total cost. Thus, functions. Do not begin consideration of alternative solutions until the team
satisfactory performance throughout the desired life cycle of the product is thoroughly understands the problem. All members of the VE task group should
actively participate, for the greater the number of ideas conceived, the more
likely that better quality, less costly alternatives will be among them.

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� Challenge the present method of performing a function. Technology is Refer to Checklist 9, Annex E for detailed requirements of the creative phase.
changing so rapidly that the rules of a few years ago are probably obsolete.
Create new ways (alternatives) for performing the necessary function(s) 2.4.5.6  Phase 4: Evaluation Phase
more efficiently (lower total cost) or effectively. Take advantage of new The objective of the evaluation phase of the VE job plan is to analyze the results
products, processes, and materials. of the creativity phase and, through review of the various alternatives, select the
� Use Creative Techniques. Use as many creativity techniques as necessary to best ideas for further expansion.
get a fresh point of view. Adopt a positive mental approach to any problem. In
developing ideas, do not allow negative thoughts or judicial thinking. Evaluation Phase Outline:
Concentrate on creating as many ideas as possible on how the function can be � Perform preliminary screening to separate the best ideas.
performed. After writing down all ideas, consider all possible combinations to � Evaluate the alternatives to aid development of solutions.
determine the best method of performing the function. � Determine criteria and objectives.
� Make every attempt during this phase to depart from the ordinary patterns, � Weight the alternatives.
typical solutions, and habitual methods. Experience indicates that it is often � Weight the criteria and objectives of the project.
the new, fresh, and radically different approach that uncovers the best value � Compute the numerical rating.
solution(s). � Rank the alternatives.
� Select the best alternates for development.
2.4.5.5.3  Creative Thinking Techniques During creativity, the group makes a conscious effort to prohibit any judicial
Several techniques are available for use to the value engineer during the creativity thinking so as not to inhibit the creative process. Now the ideas produced must
phase. Use them singularly or in combination, depending on the project under be critically evaluated for acceptance.
study and the preferences of the team leader. Some of the more widely known and
Use the key questions listed below as the basis for a set of evaluation criteria to
used techniques are outlined below:
judge the ideas:
Free Association Techniques. Free association of ideas is the fruit of both the
� How might the idea work?
conscious and subconscious mind. In fact, the subconscious mind is the most
� Can it be made to work?
creative portion of the brain, but the conscious portion forms the input.
� What is the cost?
Brainstorming. This creative approach is an uninhibited, conference type, group � Will each idea perform the basic function?
approach, based upon the stimulation of one person's mind by another's. A typical � Which is the least expensive?
brainstorming session consists of a group of four to eight people spontaneously � Can it be modified or combined with another?
producing ideas designed to solve a specific problem. The objective is to produce � What are the chances for implementation?
the greatest possible number of alternative ideas for later exaltation and � Will it be relatively difficult or easy to make the change?
development. Observe these rules during brainstorming: � Will the users' needs be satisfied?
Critical critiquing must be withheld. This means controlling the natural tendency � What is the savings potential, including life cycle costs?
to evaluate ideas instantaneously:
2.4.5.6.1  Preliminary Screening Techniques
� Criticizing by word of mouth, tone of voice, shrug of shoulders, or other form
of body language that indicates rejection is not permitted. Come and Several techniques are available to evaluate alternate ideas. Examples are as
encourage "free-wheeling". The wilder the idea, the better; it is easier to tame follows:
down than to think up. � Comparison Technique. This technique is a method of comparing the
� Applying the technique of "hitchhiking" or "piggybacking" to expand on the various features of all of the alternatives under consideration.
ideas of others by offering many variations (synergism). � Advantages Versus Disadvantages Technique. In this technique, list the
� Combining and improve ideas. advantages and disadvantages of each alternative. Then sort the ideas based
� Setting a goal in number of ideas, or time, to force hard thinking. on the number of advantages and disadvantages of each. Choose those ideas
The brainstorming process involves holding a freewheeling group discussion, with the greatest total advantage for further evaluation.
with the group leader questioning, guiding, and occasionally supplying problem- � Ranking Technique. The ranking technique allows the evaluators to assign
related information. All ideas are listed so that all members of the group can see a numerical rating to the alternates. Start this process by judging an excellent
as well as hear the ideas. The use of a flip chart and crayons, or felt tip pens, is idea to be worth 5 points; a good idea, 4 points; a fair idea, 3 points; a poor
preferable. The filled sheets can be taped to the walls so that they are constantly idea, 2 points; a very poor idea, 1 point. Group all 5-point ideas and evaluate
in view.

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further. Use the same method on all 4-point ideas, and, if necessary, on the 3- determine the best value of three automobiles being considered. In order to
point ideas. accomplish this, the individual identifies the criteria he/she wishes to consider
� Probabilities Technique. In this technique, assign subjective probabilities of and records them on the matrix sheet. For this example the criteria are: cost,
success to the implementation of acceptable ideas. A probability close to one appearance, comfort, performance, and safety.
means that the idea has a good chance of being implemented. A probability Next, the individual weighs each criterion against the other. In this example the
close to zero means the idea has little, if any, chance of being adopted. decision is that cost is better than appearance by a factor of "2" same for cost
� Estimating Alternatives. Rank the remaining alternatives according to an versus comfort; and cost is better than performance by a number of "1". This
estimate of their relative cost-avoidance potential. Base the ranking on process is continued until each criterion is compared to all other criteria.
relative estimates comparing each of the alternatives against the original
design method for providing the function. Develop the surviving alternative Next, each of the Letter scores is added and the sum recorded below as a "Raw
further to obtain more detailed cost estimates. Proceed to more detailed cost Score" and then weighted as described above. Finally it is shown that Automobile
estimates only if the preceding step indicates that the alternative is still a good A is favored by a score of 86 over B (80) and C (77).
candidate. The example of a Weighing Matrix uses information to illustrate the method. The
actual information for a project should be used in the Weighting Matrix.
2.4.5.6.2  Weighting Criteria and Objectives
The method most commonly used for the evaluation process is the criteria scoring
matrix. By comparing each criterion against the other and assigning a measure of
importance.
Table 2-5 shows an example of a "weighting matrix" used in this method.
Measures of importance may be as follows:
4 = Very Major Preference
3 = Major Preference
2 = Minor Preference
1 = Slight Preference
In the case of ties, each criterion is assigned 1 point.
It is seldom that "objectives" or "criteria" will be of equal importance; some should
have greater influence on the final decision than others. A weight factor or weight
of importance can then be introduced. Weights from 1 to 10 are often used with
the highest number given to the criteria with the most importance and the other
raw scores are adjusted in proportion (rounded off).
Following the development of "Weights of Importance", an analysis matrix is used
to analyze each alternative option being considered is initially judged on a 1
(Poor) to 5 (Excellent) basis and that score is recorded in the lower portion of the
square. This number is then multiplied by the "Weight of Importance" number
and recorded in the upper quartile of the square. Finally the sum of these numbers
is recorded as a "Total".
Do not arbitrarily discard any idea; give a preliminary evaluation, as objectively
as possible, of each idea to determine whether or not there is some way the idea
can be made to work. These totals are then used as a tool to aid the team in
arriving at the "Best" alternative but should not be considered as totally
conclusive.
In this example an individual is considering the purchase of an automobile and
wishes to utilize the "Matrix-Weighted Evaluation" process to objectively

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2.4.5.7  Phase 5: Design Development Phase -� Direct the specialist’s efforts.


The objectives of the Design Development Phase of the VE job plan are to collect -� Give credit for his/her contribution.
additional data, analyze thoroughly those best alternatives selected during the -� Ask him/her to identify other specialist or sources of assistance.
evaluation phase, and prepare cost estimates and initial designs that will ensure � Consult Suppliers. Each industry employs a unique group of suppliers,
acceptability and ultimate project implementation. particularly in the structural field, including personnel with the latest
information on structural shapes, pipe culverts, cements, chemical additives,
Design Development Phase Outline:
etc. Encourage your suppliers to suggest alternatives, other materials, design
� Determine sources for additional information. modifications, etc., to learn from their experience. In design, do not demand
� Ascertain technical feasibility of the selected alternatives. unnecessarily stringent requirements just to be on the safe side. Over-
� Determine economic feasibility of the selected alternatives. specification may be safe and easy, but it is an expensive shortcut. Solicit
� Present findings in detailed change proposals. suggestions for improvement from the suppliers, and ask what there is about
� Develop implementation plan. the design that causes high cost. In early planning, thoroughly describe the
This phase is an objective appraisal of the alternatives that provide the best value functional and technical requirements of the project, indicating those that are
for reliably performing the required functions. During this phase the most critical and those where some flexibility exists. Keep abreast of the services
promising alternatives selected during the evaluation phase will be further your suppliers have to offer, and maintain an up-to-date file of new services
developed into detailed alternative designs. The intent is to obtain and present as a potential source of ideas leading to tangible cost savings in future
convincing data regarding design changes and costs for presentation to planning and design.
management.
2.4.5.7.2  Procedure
The best alternatives are completely developed, with the assistance of experts and
specialists, as required. Recommended design changes, materials, procedures, � General. Subject each alternative to: (a) careful engineering to insure that the
new forms, changes to standards and policy, all costs, and implementation user's needs are satisfied; (b) a determination of technical adequacy; (c) the
requirements have to be documented. Develop each alternative until enough data preparation of estimates of construction and life-cycle costs; and (d) a full
has been accumulated to prove it is the best choice. If there are other similar consideration of the costs of implementation, including redesign and schedule
alternatives that are also options to the existing situation, develop the next best changes.
idea enough to prove its potential. If management rejects the team's preferred � Develop Specific Alternatives. Follow those alternatives that stand up
alternative the second alternative may serve as a fallback recommendation that is under close technical scrutiny to the development of specific designs and
still an improvement over the existing design. recommendations. Prepare sketches of alternatives to facilitate identifying
problem areas remaining in the design. Perform a detailed cost engineering
2.4.5.7.1  Design Development Phase Techniques for proposed alternatives to be included in the final proposal.
� Testing. Perform any tests required to demonstrate technical feasibility
� Use Search Techniques. Develop a list of the names of specialists and
before the alternative is recommended for implementation. Often the desired
suppliers who have the knowledge needed in developing the proposals, using
tests have already been conducted by another agency. Ask for a report on
references and phone communications.
those tests. If not available, the VE team may arrange for the necessary testing
� Consider Alternate Products and Materials. In developing ideas one should
and evaluation. Required testing should not delay approval of a proposal
give consideration to all possible design solutions, including different
when: (a) Risk is low; (b) Consequences of less success would involve nothing
products, and materials, as applicable.
more serious than less cost avoidance; (c) The element being tested involves
� Consult Specialists. To obtain better value in design, consult the most
an intangible or subjective factor; and (d) The test is normal confirmation
knowledgeable specialists available to answer questions on technical and
procedure after an action is taken.
construction problems. If the functions have been defined correctly, using
precise verbs and measurable nouns, the area of knowledge needed for value
2.4.5.7.3  Develop Implementation Plans
can be identified. For example, "support weight" would indicate that a
material specialist or structural engineer/designer could contribute. While Anticipate problems relating to implementation and propose specific solutions to
consultation can be done by telephone or mail, having a personal meeting with each problem. Particularly helpful in solving such problems are conferences with
the specialists is usually more desirable. Effective use of specialists can specialists in areas such as: inspection, environmental, legal, procurement,
remove many potential roadblocks. The value analyst must be able to: materials, and planning. Develop a specific recommended course of action for
-� Define the required functions and the cost problem. each proposal that details the steps required to implement the idea, who is to do
-� Indicate the importance and priority of the problem. it, and the time required. Refer to Checklist 10, Annex E for detailed requirements
-� Make the specialist a part of the project. of the Design Development Phase.

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2.4.5.8  Phase 6: Presentation Phase toward two audiences. The first audience, which is technical, requires
The objective of the presentation phase of the VE job plan is to put the sufficient detail to demonstrate the feasibility of the proposed change. The
recommendations before the decision-makers with sufficient information that the second audience, which is administrative, is one for whom the technical
decision-makers will accept the proposals. The checklist requirements for the details can be summarized, while the financial implications are emphasized.
presentation Phase (Checklist 11) are referenced in Annex E. Long-range effects on policies are usually more significant to the manager
than to the engineer.
Presentation Phase Outline:
� Prepare progress reports. The manager who makes an investment in a VE
� Anticipate roadblocks to be overcome study expects to receive periodic reports with estimates of potential
� Prepare written proposal outcomes. These reports assure top management awareness, support, and
� Summarize study participation in the VE program. Managers are seldom motivated to act by a
� Identify expected benefits / disadvantages one-time exposure at the final presentation, no matter how just the cause.
� Make recommendation of specific action � Warn the value engineering team of objections early on. Early disclosure
� Suggest an implementation plan of action of potential changes can serve to warn the VE team of any objections to the
A VE recommendation is a challenge to the status quo in any organization. It is a proposal. This early warning will give them an opportunity to incorporate
proposal for improving value and providing a beneficial change. The success of a modifications to overcome objections. lf management has been kept
VE team is measured by the cost avoidance and value improvement achieved from informed of progress; the VE presentation may be only a concise summary
implemented recommendations. Regardless of the merits of the recommendation, of final estimates, pro- and-con discussion, and perhaps formal management
the net benefit is zero if they are not accepted and implemented. Presenting a approval.
recommendation, and subsequently guiding it to implementation, often requires � Relate benefits to organizational objectives. VE recommendations that
a greater effort than the proposal's actual generation. represent advancement toward an objective are most likely to receive
favorable consideration from management. Therefore, ensure that the
The initial presentation of a recommendation must be concise, factual, accurate, presentation exploits all of the advantages that a VE recommendation may
and conducted in such a manner that it creates management's desire to accept and offer toward fulfilling organizational objectives and goals. The objective may
implement the change. Selling a recommendation depends to a large extent on the not only include cost avoidance but also the attainment of some other
use of good human relations. Present the recommendation in such a way as to mission-related goal of the manager.
avoid any personal loss or embarrassment to those related to the study item. Give � Support the decision-maker. The cost avoidance of the recommendations
proper credit to those who contributed and to those responsible for is likely to be improved if the proposal is promptly implemented. Prompt
implementation. The information contained in the VE recommendation will implementation, in turn, depends upon the expeditious approval by the
determine whether the proposal will be accepted or rejected. Although sufficient individuals responsible for a decision in each organizational component
information may be available to the team, this information must be documented affected by the proposal. Identify these individuals and conduct the entire VE
in the proposal. effort under their sponsorship. Like any other well-prepared staff report,
Since management must base its judgment on the documentation submitted with each VE report should:
a proposal, sufficient data must be provided to the reviewer to reach an informed -� Satisfy questions the decision-maker is likely to ask.
decision. -� Permit him/her to preserve his professional integrity and authority.
-� Imply assurance that approval would enhance management’s Image.
2.4.5.8.1  Written Proposal -� Include sufficient documentation to warrant a favorable decision with
Always complete the VE study with a written report detailing the VE reasonable risk factors (both technical and economic).
recommendations. Supplement the written report with an oral presentation of � Adequate Return. To gain serious consideration of VE proposals by
study results. The systematic approach of the VE job plan includes the careful management, include adequate evidence of satisfactory return on the
preparation of a written report, from which a more concise oral presentation will investment. Often, current contract savings alone will assure an adequate
evolve. return. In other cases, life cycle or total program savings must be considered.
Either way, evidence of substantial benefits will improve the acceptability of
a proposal.
2.4.5.8.2  Gaining Value Engineering Acceptance
� Show Collateral Benefits. VE proposals often offer greater value benefits
Several hints that appear to be most successful in improving the probability of
than the immediate cost improvements specifically identified.
acceptance are discussed in the following paragraphs:
Some of the benefits are collateral in nature, and difficult to equate in monetary
� Consider the reviewer's needs. Use appropriate terminology to the
terms. To increase the likelihood of acceptance of VE recommendations clearly
organization and position of the reviewer. Each proposal is usually directed

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identify and completely describe all collateral benefits. Some typical collateral � Write within your reader's experience.
benefits are reduced maintenance, energy conservation, improved aesthetics, � Use variety in expressions.
better environmental quality, lower replacement cost. � Write to express; not impress.

2.4.5.8.3  The Value Engineering Workbook 2.4.5.8.6  Visual Aids


The workbook documents all actions and efforts expended during the study. It Good graphic illustrations can translate a large mass of numbers into a simple
should be a complete and ready document to facilitate preparation of the understandable management language. But entirely different yardsticks measure
summary report and support the team's recommendations. the documentation on which a presentation is based, and the visuals that
The VE team compiles a workbook throughout the life of a study, starting with the interpret that documentation.
information phase. If properly maintained during the project, the workbook will Documentation is based on detailed findings. The facts, figures and statistics that
require no additional preparation. make up the documentation should be as complete, up-to-date, detailed,
The type of information that should be recorded in the project workbook for each authentic, fully organized, and thoroughly indexed as possible. The visuals
project is listed in Checklist 12, Annex E. summarize the situation at a glance. The charts, graphs or other visuals used in a
presentation should be as few in number and as significant, simple and free of
detail as it is possible to make them, pinpointing the high spots that the briefing
2.4.5.8.4  Reasons for Rejection of Value Engineering Recommendation
seeks to identify, clarify and establish.
Failure to provide adequate documentation is a major cause for proposal
rejection. Some typical reasons for rejection are indicated below. Further details
2.4.5.9  Phase 7: Implementation Phase
of reasons given for unsatisfactory outcomes are described in Annex G and form a
basis for risk analysis and mitigation during the value study. The objective of the Implementation Phase of the VE job plan is to ensure that
approved proposals are rapidly and properly translated into action in order to
� Failure to Maintain Project Integrity. It is safe to assume that any approval achieve the savings or project improvements that were proposed.
authority will want positive assurance that the integrity of the project is
maintained. Implementation Phase Outline
� Technical Supporting Information Incomplete or Inaccurate. Provide all � Develop an implementation plan
salient technical information. Accompany it with proof of previous successful � Execute the plan
use or tests supporting the change proposal. � Monitor the plan to completion
� Cost Engineering Incomplete or Inaccurate. Credibility of cost information
Even after formal presentation, the objectives of a VE study have not been fully
is of major importance. Erring on the conservative side with cost estimates
attained. The recommendations must be converted into actions; hence, those
tends to gain more favorable consideration than presenting inflated claims of
who performed the study and the manager who requested the study must all
savings. Although approval authorities know that cost information must
maintain an active interest until the proposal is fully incorporated into the
usually be estimated, reveal the basis and sources of the team's estimates.
design or plans. A poorly implemented proposal reflects discredit on all
concerned. Where unexplained delays are encountered, a polite follow-up note
2.4.5.8.5  Written Reports may serve as a reminder to the responsible authority, pointing out that those
Clear communications should be the basic function of all writing. No matter what who made the study are available for assistance. An approved VE proposal
the purpose of the writing, the result should be the transfer of thought. The idea should not be permitted to die because of inaction in the implementation
you have may be top-rate, but until you've explained it clearly to others, neither process.
your organization nor you will gain from it.
One of the ways to improve upon your written reports is to observe these ten rules 2.4.5.9.1  Implementation Investment
of clear writing: The team needs to emphasize the need to invest time or funds in order to save
� Keep sentences short. Long sentences make reading difficult. money when submitting value change proposals. Managers must provide funds
� Present simple thoughts and expressions. or personnel time for implementation to achieve the benefits of VE.
� Use familiar words. Successful implementation depends on placement of the necessary actions into
� Avoid using unnecessary words. the normal routine of business. Progress should be reviewed periodically to
� Put action in your verbs. insure that any roadblocks that arise are overcome promptly.
� Write the way you talk. The written word sometimes gets "stuffy".
� Use terms your reader can picture.

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2.4.5.9.2  Expediting Implementation


3� Project Phase Approach
The fastest way to achieve implementation of an idea is to effectively utilize the
knowledge gained by those who originated it. Whenever possible, the VE team Projects go through a number of phases:
should be required to prepare initial drafts of documents necessary to revise � Planning (including feasibility studies)
handbooks, specifications, change orders, drawings and contract requirements. � Design
Such drafts will help to assure proper translation of the idea into action, and will � Construction
serve as a baseline from which to monitor progress. � Maintenance
� Decommissioning
Each of these stages is capable of being analyzed using the VE approach. However
the initial focus should be on the Planning and Design phases, since VE can be
introduced to these stages within the current structure and regulations of DPWH.
VE at Planning Phase (feasibility stage) is known in SAVE terminology as the
Zero Look. It would examine the nature of the project, space and functionality of
projects, rather than detailed engineering options.
VE at Design Development Phase (Second Look or the 40 Hour Study) is the
major focus of VE and identifies through FAST approach the individual functions
of every part of the project. At this stage alternative engineering options are
considered and adopted when appropriate. This has to be conducted at the early
stages of the design (around 30% completion stage).
VE at Detailed Design Stage (The 95% or Audit) is generally undertaken only if
the project is not proceeding satisfactorily, either through budget estimate
overrun or technical problems. It is intended to identify a way forward that can
achieve the functionality of the project and overcome the identified problems.
This VE Stage is not a standard option.
VE at Construction Stage offers a number of possibilities; the workshop can be
undertaken during the procurement process to identify ways in which Tenderers
can minimize their costs. Alternatively the process can be built in to the contract,
which allows the Contractor to submit Change Proposals developed using VE
techniques; the savings can then be shared between the Client and the Contractor
in a manner set out in the contract. These approaches would require changes to
procurement regulations and laws, and should be considered as part of the long-
term strategy once VE is established. Introduction into Design and Build and PPP
projects would have similar potential benefits and be included for consideration
at that time.
Post Completion Audit differs from the normal VE workshop in that it does not
aim to add value to the project under consideration but rather to learn lessons
from the VE undertaken previously in the project for the benefit of future projects.
It should always be undertaken by the Value Unit for projects for which VE
workshops have been undertaken, and can consist of a simple questionnaire to
the stakeholders, interviews with major players, or a full workshop, depending
on the nature and outcome of the project.
VE during Maintenance offers opportunities in maintenance savings on complex
infrastructure, by means of the standard VA methods, and can be considered once
VE is well established in the Department.

����� ����
��������������������������� ���������������������������

VE for Decommissioning would be applicable for complex decommissioning


such as a chemical plant, port or other major infrastructure. At present, DPWH
4� Project Selection
does not become involved in significant decommissioning of this nature but it The key to project selection is to identify candidate projects for a VE study. The
should be included in long-term strategy for assistance to other agencies, if projects should have the potential to achieve maximum cost avoidance, energy
required. savings, or other benefits, such as a shorter construction schedule through a
complete VE. It is also important that the right team members are chosen for the
study.
Proper selection is vital to the success of the entire VE program. As VE resources
are limited, a major criterion in project selection should be the potential benefit
from the resources invested.
There are certain qualities or aspects of a proposal that serves as indicator for
possible VE. The following areas of high cost or causes of high cost, which may
indicate poor value, should receive the majority of the VE effort.
Projects appropriate for undertaking VE are those that are of sufficient size to
justify the costs of the VE study, sufficiently complex that they require the analysis
and will provide benefits from the study, and where the stakeholders will support
the undertaking of the study, which might result in some time delay in completion
of the stage under study to provide benefits in the overall delivery.
Project selection in DPWH requires a short-term and a long-term strategy.
Starting with the larger and more complex whilst resources are limited and
moving towards a more comprehensive approach in the longer term when
resources are more plentiful would be the recommended way forward. A final
target of all projects over PHP100m has been recommended; this can be reviewed
as the VE Unit develops; however it will always be the case that very small
projects will not provide value for money from the VE activity, and should be
improved by trickle-down from lessons learned from larger projects.
The Champion in consultation with the VE Unit Head and with relevant
stakeholders should select projects.
Since the value of a project has been used as the guide to selection for VE the
status of packaged and split projects needs to be addressed. Packaged projects
are those where small projects are grouped together for procurement purposes.
Unless there is a common thread in the package, which would be worth examining
using VE, these projects would be classed for selection according to the value of
the individual package.
Split projects are those where one major project is divided into parts to provide
resources, or for procurement purposes. This division is not relevant to the
consideration of VE process and the total project value should be considered in
selection.
Notwithstanding the comments above regarding packaged and split projects, the
decision on selection of projects should finally be taken taking account of all
factors, not just the value of a project

���� ����
��������������������������� ����������������������������

5� The Hiring and Managing of Value Engineering 6� References


Consultants Barry A J, Understanding your Client using Value Drivers, Value Magazine, October
2009.
5.1  Requirements Barton R, Back to Basics – an Overview of Value Management, HKIVM International
For any value study, a qualified value specialist is required to achieve the aims of Conference, November 2000.
VE. Where an experienced person is not available in-house then they should be Barton R, Entities, Attributes and Value: Unpacking the Australian Standard
procured externally either for single value studies or on a term-contract for Definition of Value, Value Times, June 2007.
studies over a period.
Barton R, More on the New VM Standard - Defining Value Management Studies,
The external value specialist can make use of in-house subject-matter experts or Value Times, 2008.
can provide their own team. The latter approach ensures a level of independence
Barton R, Value, Values and Value for Money, CPG Learning Seminar, 2009
but the benefit of in-house members is their knowledge about the organization.
Best Management Practice: Management of Value (MOV) Toolbox, UK Government
A standard Terms of Reference for the appointment for external consultants is
2011.
included in Annex H, taken from the SAVE document.
Bohon J D et al, Value Methodology: A Pocket Guide to Reduce Cost and Improve
5.2  Selection of Consultants Value Through Function Engineering, GOAL/QPC, 2008.

Since no local companies are believed to have CVS qualified persons in the Certification Examination Study Guide, SAVE International, September 2011.
Philippines, procurement of consultants will need to be undertaken Dallas M, Innovations in the Management of Value, APM Group Ltd.
internationally. A list of appropriate companies is provided on the SAVE website.
Department of Defense Instruction Number 4245.14: DoD Value Engineering (VE)
Program, October 26, 2012.
FHWA Value Engineering Policy, Order 1311.1A, 11pp, May 25, 2010.
Fisk E R and Reynolds W D, Construction Project Administration: Chapter 16 Value
Engineering, 9th Edition, Jul 24, 2009
Government Circular on Value Management.
Guidebook for VE Activities – A Basic VE Manual, (VE Katsudo No Tebiki, Society of
Japanese Value Engineering, August 1971) English translation 1981.
Guidelines for Value Engineering, AASHTO, March 2010.
Handbook for Logical Framework Engineering, Economic Planning Unit, Prime
Minister’s Department, Malaysia, 2010.
http://www.neda.gov.ph/progs_prj/Handbook/Value%20Engineering%20Han
dbook%20-%20June%202009.pdf.
Implementing Lean in Construction: Overview of CIRIA’s Guides and a Brief
Introduction to Lean, RP978, and CIRIA London, 2013.
Invitation to first Philippine Association of Value Engineers Conference.
Life-cycle Cost Engineering Procedures Manual, California Department of
Transportation, 150pp, November 2007 (updated August 2010).
Male S, Kelly J, Gronqvist M and Graham D, Reappraising Value Methodologies In
Construction For Achieving Best Value, Value Solutions, 2005.
Male S, Kelly J, Gronqvist M and Graham D, Managing Value as a Management Style
for Projects, Value Solutions, 2006.

���� ����
��������������������������� ����������������������������

M.Saifulnizam, V.Coffey and C.N. Preece, Value Management: An Extension of Value Management Guideline, TAM04-14, New South Wales Treasury, 26pp,
Quantity Surveying Services in Malaysia, International Construction Business and September 2004.
Management Symposium (ICBMS2011), 2011.
Value Methodology Standard and Body of Knowledge, SAVE International, June
NDD Value Management Strategy, Network Delivery and Development 2007.
Directorate, Highways Agency, UK, 2012.
Project Development Procedures Manual, Chapter 19 Value Engineering,
California Department of Transportation, June 2013
http://www.dot.ca.gov/hq/oppd/pdpm/pdpmn.htm.
Proposed Revision to OMB Circular A-131 Value Engineering, Office of Management
and Budget, USA, 2012.
Rains J A, Creating and Maintaining an Effective and Successful Value Management
Program, Advanced Value Group, LLC
Saifulnizam M and Coffey V, Implementing Value Management as a Decision-
making Tool in the Design Stages of Design and Build Construction Projects: A
Methodology for Improved Cost Optimization. �

USACE Value Engineering Manual of Practice Draft, US Army Corps of Engineers, �

2012.
Value Engineering Guidelines, Idaho Transportation Department, July 2010.
Value Engineering in the Federal-aid Highway Program, Report MH-2007-040,
Federal Highway Administration, March 2007.
Value Engineering Handbook, National Economic and Development Authority,
Philippines, 219pp, June 2009.
Value Engineering Manual, West Virginia Department of Transportation, Division
of Highways, 187pp, January 2004
Value Engineering, Philippine Institute of Civil Engineers, October 2008.
Value Engineering Program Administration Manual, Virginia Department of
Transportation, 12pp, November 2012.
Value Engineering Report Guide, California Department of Transportation, 1999.
Value Engineering Team Guide, 3rd ed, California Department of Transportation,
180pp, 2003.
Value Engineering Team Member Guide, California Department of Transportation,
2013.
Value Engineering and Value Management – Is there any Difference, KPK Research
Digest, July 2012.
Value Management, Australian Standard AS4183-2007.
Value Management, European Committee for Standardization, 2000.
Value Management (VM) Concept and Implementation, Unit Perancang Ekonomi
Malaysia, 2011 (presentation).
Value Management In The Government Projects (Part I), Cawangan Kontrak and
Ukur Bahan JKR, June 2011.

���� ����
� ���������������������������

�������������������������������

The two examples provided are from Value Analysis prepared by the group of DPWH staff members who participated in 
the  training  and  workshops  conducted  in  the  year  2006.    The  particular  examples  were  provided  by  Engr  Yacob  N 
Mambuay, Head of Technical Division of UPMO. 

VALUE ANALYSIS EXAMPLE 1 

FUNCTION: Provide Transportation


TITLE: Buy used vehicles (less than 3 year old models) in lieu of rental

A.� ORIGINAL DESIGN:

Rent, operate, and maintain two service and four utility vehicles.
�������� Examples of Value Engineering � B.� ALTERNATIVE DESIGN:


� Buy six used vehicles (less than 3 year old models) to be operated and maintained during the
� execution of the project. Immediately following completion the vehicles will be turned over to


the government to be bid out with a minimum asking price of 50% of the purchasing price.



C.� SAVINGS DUE TO:

� Change from rental to purchase.

D.� ADVANTAGE:

* Reduce initial cost.


* Salvage Value of the vehicles is returned to the project.

E.� DISADVANTAGE:

* It will increase maintenance cost.

F.� ESTIMATED REDESIGN TIME: Minimum

G.� TECHNICAL JUSTIFICATION:

Since the vehicles are to be sold at the end of the project, there will be no future maintenance
costs for the government as required by the Department of Budget and Management.

The vehicles could be purchased in urban environments to guarantee a less harsh treatment and
better condition of the unit.

COST SUMMARY INITIAL COST LCC TOTAL COST


Original Design PHP 22,699,962 P PHP 22, 699,962
Alternative PHP 10, 192, 169 P PHP 10, 192, 793
Savings PHP 12, 597, 793 P PHP 12, 597, 793


� ����
��������������������������� ���������������������������

Item A(5)b PHP 14,230,149.21


CALCULATIONS _______________
Sub-total PHP 21,266,594.00
ORIGINAL PLAN: COST
Mark-up 6.74% PHP 1,433,368.00
ITEM A(5)a - Provide, operate and maintain 2 units (rental basis) PHP 7,036,444.80 Total PHP 22,699,962.00
at PHP 97,728.40/per month for 72 months

ITEM A(5)b - Provide, operate and maintain 4 units utility vehicles PHP 14,230,149.21 2.� VA Alternative
at PHP 98,820.48/per month for 144 months
________________ Item A(5)a PHP 3,682,800.00
Total Cost of Original Plan - PHP 21,266,594.00 Item A(5)b PHP 8,035,200.00
_______________
ALTERNATIVE PLAN (Value Engineering) Total PHP 11,718,00.00

ITEM A(5)a - Purchase 6 slightly used Frontier 4x2 used PHP 2,700,000.00 INITIAL SAVINGS PHP 21,266,594.00
(3 year old) Double cab pick-up (Year model Direct (-) 11,718,000.00
2003) at PHP 450,000.00/per vehicle Cost _______________
Sub-total PHP 9,548,594.00
24% of 4% overhead expenses/4% Contingencies of direct cost PHP 648,000.00
Direct Cost 4% miscellaneous expense, 12% contractors profit
Mark-up 6.74% PHP 643,575.00
10% VAT (Direct Cost to Mark up) (3.348M) PHP 334,800.00 Total PHP 10,898,594.00
________________
Sub-total of A(5)a PHP 3,682,800.00
FINAL SAVINGS AFTER PHP 9,548,594.00
ITEM A(5)b - Operate and maintain 6 slightly used frontier 4x2 PHP 6,480,000.00 6 VEHICLES WERE SOLD AT 1,350,000.00_
Direct Double Cab pick-up (year model 2003) at (PHP 1,350,000.00) PHP 10,898,594.00
Cost PHP 30,000.00/month for 216 months

24% mark-up of Direct Cost PHP 1,555,200.00


________________
Sub Total of A(5)b PHP 8,035,200.00

GRAND TOTAL of Item A(5)a and A(5)b PHP 11,718,00.00

IMMEDIATE SAVINGS due to Value Engineering PHP 21,266.594.00


(-) PHP 11, 718,000.00
________________
Savings Upon Completion of Project, PHP 9,548,594.00
Projected Total Sales after 6 Vehicles
Sold to a bidder at minimum accepted bid
50% of Purchase Value PHP 1,350,000.00
________________
GRAND TOTAL of Savings PHP 10,899,594.00

COST SHEET

ITEM REFERENCE
1.� Original Design

Item A(5)a PHP 7,036,448.80

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���������������������������

VALUE ANALYSIS EXAMPLE 2 

FUNCTION: House Engineers’ Office/Quarters
TITLE: Construct, operate, and maintain one building to serve as Office, Laboratory, and Living
Quarters inside the nearest Public School.
A.� ORIGINAL DESIGN:

Construct, operate and maintain two separate buildings, one building for office and laboratory
and one building for quarters inside a lot to be purchased and secured.

B.� ALTERNATIVE DESIGN:

Construct, operate and maintain one single building, longer than the original, to serve as office,
laboratory and quarters inside the nearest Public School.

C.� SAVINGS DUE TO:

Reduce number of structures and eliminate cost of land.

D.� ADVANTAGES:

* Reduce initial cost


* Reduce maintenance cost
* Eliminate cost of land

E.� DISADVANTAGES:

* School yard gets noisy during school hours.

F.� ESTIMATED REDESIGN TIME: Moderate

G.� TECHNICAL JUSTIFICATION:


The idea proposed here has been and is being adapted in other projects in the Philippines. The
combination of the structures allows for a net reduction of 24 m2 area of building.

The idea to use land provided by a school for their future use, or as in other projects, land from
the local town to provide the structure for a future clinic is a win-win situation both for the local
government and DPWH. DPWH has plenty of office space and does not need to accumulate any
more, while the local governments may be in need of new structures such as schools for the
growing population.

COST SUMMARY INITIAL COST LCC TOTAL COST


Original Design PHP 17,490,283 P PHP 17,490,283
Alternative PHP 7,572,563 P PHP 7,572,563
Savings PHP 9,917,720 P PHP 9,917,720

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CEBU TRANSCENTRAL ROAD


SUMMARY OF UNIT PRICES OF CONSTRUCTION PAY ITEMS
���� � � ������ ����������� �
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����������������������������–��������������������������������
������ Construction of Engineer’s Field Office Compound� ����� ����� ����������� �����������
������ ������������������������������������������ ����� ������ ���������� �������������
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��������������������
������ Construction of Engineer’s Quarters (Floor Area = ����� ����� ������������� �������������
�����������
� ����������������������������������������������� � � � �
Engineer’s Quarters, Schedule F�
������ ����� ����� ����������� �����������
������ Operation and Maintenance of Engineer’s Quarters� ����� ������ ���������� �������������
������� �������������������������������������������������� ����� ����� ����������� �����������
� �������������������������������������������������� � � � �
���������������������������������������������
������� ����� ������ ���������� �����������
���������
� ������������������������������������������������� ����� � � �
���������������������
������ ������ ���������� �������������
� ����������������������������������������������� ����� � � �
������������������������
������ ������� ���������� ��������������
� ��������������������������� � � � �
�����������������������������������������������
������ ����� ����� ������������� �������������
������ ������������������������������������ ����� ������ ����������� �������������
���������������

��� ��������������������� ����� ����� ����������� �����������


� ����������������������������������������Sub­Total A  � � � 52,265,046.36 

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COST SHEET

ITEM REFERENCE
1. Original Design

1) Building (Quarters) Construction/Operate/Maintain PHP 4,633,425.15


2) Building (Office and Lab) Const./Operate/Maintain PHP 9,111,900.24
3) Office Compound (Acquire/develop/Maintain) PHP 2,640,550.00_
Sub-Total PHP 16,385,875.39

Say PHP 16.39 Million

Mark-up 6.74% 1,104,408.00


Total PHP 17,490.283.00

2. VA Alternative

1) Construction/One Building PHP 1,934,000.00


As Office/Lab/Living Quarter

2) Operate and Maintain One Building PHP 4,960,000.00_


As Office/Lab/Living Quarter
Total PHP 6,894,400.00

Say PHP 6.89 Million

3. Site Development/Fencing PHP 200,000.00

Sub-total PHP 7,094,400.00

Mark-up 6.74% PHP 478,163.00


Total PHP 7,575,563.00

Savings PHP 9,917,720.00

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� �

Examples of Functions and Modifiers


Procedures

Verbs Nouns
Allocate identify alternative material
Allow improve awareness option
analyze increase concept order
Audit Inform control part
authorize maintain coordination performance
certify measure criteria personnel
compile monitor data plan
confirm obtain decision priority
copy organize design process
create procure deviation record
decrease protect direction regulation
develop provide documentation request
�������� Examples of Functions and Modifiers � distribute receive facility resource
enter reconcile funds schedule
establish record goal shipment
evaluate report history source
facilitate set information staff
forecast specify instruction standard
generate test inventory status
guide transmit limit trend

Projects

Verbs Nouns
absorb heat air material
alter illuminate appearance objects
amplify impede balance oxidation
change improve beauty parking
circulate increase color people
collect induce communication power
condition insulate compression preparation
conduct interrupt convenience prestige
connect modulate current protection
contain prevent ego radiation
control protect enclosure sheer
convey provide energy sound
cool rectify environment space
create reduce features structure
distribute reflect feeling style
emit repel fire symmetry
enclose resist flow temperature
enjoy separate fluids tension
establish shield force texture
exclude smell form one
extinguish support heat torque
feel taste image utilities
filter think landscape view
finish transmit light voltage
generate ventilate load weight

� ����

�������� Examples of FAST Diagrams�













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���������������������������������������������������������

FUNCTION ANALYSIS 
BASIC FUNCTION: PROVIDE SHELTER   � � �
No  COMPONENT                         VERB+NOUN  TYPE           
COST 
�� ����������������������������� ��������� ��������� �� ���������
��� ��������������������� ������� ����������� �� �����
��� ������������������ ����������� ����������� �� �����
��� ������������������ ��������� ������ �� �����
��� Engineer’s Quarters� ���������� ��������� ��� �����
��� ����������������������� �������� ������ �� �����
��� Engineer’s Communication � ������������� �������������� �� �����
��� ���������������������� ��������� ����������� �� �����
� � � � � �
� �   TOTAL  � 56.87 
BASIC FUNCTION: IMPROVE COMMUNICATIONS  � � �
No  COMPONENT                       VERB+NOUN  TYPE               
COST 
�� ���������������������������� ��������� ������� �� �����
���� ������������������ ��������� ������� �� �����
��� ��������������������������������� ��������������� �������� �� �����
��� ������������������������� ��������� �������� �� �����
� � ������� ��������� �� �
���� �������� ��������� ������������ ���� � ����������� �� �����
��������������������������
� � ������� ���������������� �� �
��� � ��������� ����������� �� �����
� � � � � �
� � � TOTAL� � 19.20 
BASIC FUNCTION: CLEARING GROUND     � �
No  COMPONENT                       VERB+NOUN  TYPE              
COST 
�� ����������� ������� ����������� �� ������
� � ����������� ������������ �� �
��� ��������������������������� �������� ����������� �� �����
���� ������������ ������������� ����������� �� �����
��� ��������������������������������� ��������� ������������ �� �����
��� ��������������������� �������� ����������� �� �����
��� ����������������������� ������� ����� �� �����
� � � � � �
� �   TOTAL   � 25.43 
BASIC FUNCTION: TRANSPORT GOODS  � � �
No  COMPONENT                         VERB+NOUN  TYPE               
COST 
�� �������������������������� ��������� ���������� �� �����
��� ��������������������������� ��������� ������������� �� �����
��� ����������������������� ��������� ���������� �� �����
��� ������������������� ������������ �������������� �� �����
� � � � � �
� � � TOTAL� � ������
BASIC FUNCTION: SPAN OPENING     � �
No  COMPONENT                           VERB+NOUN  TYPE              
COST 
�� ��������������������� �������� ���������������� �� ������
� � ��������� ���������� �� �
� � ���������� ���������� �� �
��� ���������������� ��������� ����������� �� ������
��� ������������������� ����������� ���������� �� �����
� � ������������ ���������� �� �
��� ���������������������������� ������������ ���������� �� �����
� � � � � �
  � � TOTAL   � 51.80 
  � �   �  
  � �   �  
  � �   �  

� ����
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BASIC FUNCTION: SUPPORT VEHICLES  � � �
No  COMPONENT                       VERB+NOUN  TYPE             
COST 
�� ���������������� �������� ��������� �� ������
���� ����������������������������� ��������� ���������������� �� ������
��� ����������������������� ������ ������ ��� �����
��� ���������������������� ��������� ��������� �� �����
� � � � � �
� � � TOTAL� � 27.00 
BASIC FUNCTION: DRAIN WATER   � � �
No  COMPONENT                      VERB+NOUN  TYPE           
COST 
�� ������������������������������� ��������� ��������� �� �������
��� ��������������� ��������� ������� �� ������
���� ���������������������� ������� ������� �� ������
���� �������������������������������� ��������� ������� �� ������
���� ��������������������� ��������� ������� �� ������
��� ��������������� ��������� ������� �� �����
��� ��������� ��������� ������� �� �����
��� ���������������� ��������� ������� �� �����
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�������� Discounted Cash Flows and Recurring
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Cost (Example)�
��� ���������������������������������� ������� ������� �� �����
� � � � � �
� �   TOTAL   � 328.83 
BASIC FUNCTION: PROVIDE SAFETY   � � �
No  COMPONENT                      VERB+NOUN  TYPE               
COST 
�� �������������������������� ��������� ���������� �� �����
��� ���������������������� ��������� �������� �� �����
��� ����������������������� ��������� ������� �� �����
� � ��������� ��������� �� �
���� �������������� �������������� ������� ���������� �� �����
����������
���� ��������� ������������ ������� �� �����
��� �������������������������� ��������� ������ �� �����
��� ������������ ��������� �������� �� �����
����� ���������������������������� ��������� ������������� �� ������
� � �   � �
� � � TOTAL  � 14.56 

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Discounted Cash Flows and Recurring Cost (Example)


YEAR Total
A: Investment Cost 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 Civil Works 513,946 1,541,838 - - - - - - - - - - - - - - - - - - 2,055,784
- Foreign Cost Component 256,973 770,919 - - - - - - - - - - - - - - - - - - 1,027,892
- Domestic Cost Component 256,973 770,919 - - - - - - - - - - - - - - - - - - 1,027,892

2 Mechanical and Equipment - - - - - - - - - - - - - - - - - - - - -


- Foreign Cost Component - - - - - - - - - - - - - - - - - - - - -
- Domestic Cost Component - - - - - - - - - - - - - - - - - - - - -

3 Environment and Social Mitigation - - - - - - - - - - - - - - - - - - - - -

4a Consultants - International 14,699 - - - - - - - - - - - - - - - - - - - 14,699


a. Project Management - - - - - - - - - - - - - - - - - - - - -
b. Technical Expertise 14,699 - - - - - - - - - - - - - - - - - - - 14,699
c. Capacity Development - - - - - - - - - - - - - - - - - - - - -
-
4b Consultants - National 132,288 56,695 - - - - - - - - - - - - - - - - - - 188,983
a. Project Management 13,229 5,669 - - - - - - - - - - - - - - - - - - 18,898
b. Technical Expertise 119,059 51,025 - - - - - - - - - - - - - - - - - - 170,084
c. Capacity Development - - - - - - - - - - - - - - - - - - - - -
Subtotal (A) 660,933 1,598,533 - - - - - - - - - - - - - - - - - - 2,259,466

B. Recurrent Cost (by government)


1 Salaries - - - - - - - - - - - - - - - - - - - - -
2 Accomodation - - - - - - - - - - - - - - - - - - - - -
3 Civil Works & Eqpt Operation and Maintenance - - 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 1,069,012
- Foreign Cost Component - - 20,558 20,558 20,558 20,558 20,558 20,558 20,558 102,789 20,558 20,558 20,558 20,558 20,558 20,558 20,558 20,558 20,558 102,789 534,506
- Domestic Cost Component - - 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 1,069,012
Subtotal (B) - - 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 1,069,012
-
Total Base Cost 660,933 1,598,533 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 41,116 205,578 3,328,478
NPV @ 12% 2,172,085

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�������� Checklists�





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Checklists Project                                                                                                      Project ID 
Checklist 1 Information Phase Outline  
Checklist 1. Information Phase Outline ................................................................................................ 1
• Understand the item, system, or operation under study� � � ���
Checklist 2. Information Gathering ....................................................................................................... 2 • Gather all types of information from the best sources� � � ���
• Obtain complete, pertinent information� � � ���
Checklist 3. General Information........................................................................................................... 3
• Get the facts� � � ���
Checklist 4. Information on Engineering and Design .......................................................................... 4 • Get all available costs� � � ���
• ���������������������������������������������� � � ���
Checklist 5. Information on Methods and Processes ........................................................................... 5
• Identify and define functions� � � ���
Checklist 6. Information on Materials and Procurement .................................................................... 6 • Develop a Function Engineering System Technique � �
�������� ���
Checklist 7. Information on Maintenance ............................................................................................. 7 �����������
• Classify functions� � � ���
Checklist 8. Information on Function and Worth ................................................................................ 8
• Determine function relationships� � � ���
Checklist 9. Creative Phase .................................................................................................................... 9 • �������������������������������������������� � � ���

Checklist 10. Design Development Phase ........................................................................................... 10 • Determine cost of each function and overall project� � � ���
• Identify high���������������� � � ���
Checklist 11. Presentation Phase......................................................................................................... 11
• Determine the function worth and overall project worth� � � ���

Checklist 12. Value Engineering Workbook ....................................................................................... 12 • Determine function value� � � ���
• Determine value opportunity index for each function� � � ���
Checklist 13. Selection Phase ............................................................................................................... 13
• Determine overall value opportunity index� � � ���
• Identify areas of poor value� � � ���
Prepared By:   Date:   �
These checklists provide general guidance on requirements. They are available
in Excel format for direct entry of checks.
�  
As DPWH develops the VE process and capabilities some of these checklists
may be replaced with separate versions to suit specific project types or stages.

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Project                                                                                           Project ID  Project                                                                                Project ID                                                                
 
Checklist 2 Information Gathering � Checklist 3 General Information 

Physical Data   � Performance Data �   • What is the objective of the project?� � ���

������ � ��� (requirements and needs)�   • Why is it needed?� � ���

������������ � ��� ������� � ���


• Are the functions listed?� � � ���

���������� � ��� ����������� � ���


• Are �������������������������������������������� � ���

����������������� � ��� ������������� � ��� • Does the team completely understand the functional requirements?� � ���

������ � ��� �������� � ��� • Has the team reviewed the specifications and requirements?� � ���

������� � ��� ��������� � ��� • Are the specifications realistic? (That is, are all ������������������������������� �
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�������� � ��� � �
• ��������������������������������������������������������������� � ���
����������������� � ��� � � ��������������
������������������� � ��� Restrictions   �
• Will a modification of the specification simplify design and construction?� � ���
����������������� � ��� (on detailed specifications)  �
• Are the ������������������������������������������������������ � ���
���������������������� � ��� ��������� � ���
• Does the report state that all performance and environmental requirements �
���������������������� � ��� ������������ � ��� ������������������������������ ���

�������������������� � ��� ������������ � ��� • Has the planner and the designer interpreted the specifications correctly?� � ���

� � ������������ � ��� • Does the report identify what special performance or operating characteristics �
���
��������������
� � ���������� � ���
Prepared By:   Date:   �
Methods data – How it is:  � ������ � ���

���������� � ��� � �  
������������ � ��� � � �  
����������� � ��� Cost data  �
����������� � ��� (detailed breakdown)  �
������������ � ��� ������� � ���

���������� � ��� ����������� � ���

� � �������� � ���

� � � �
� � � �
� � Quantity Data   �
� � ��������������������� � ���

Prepared By:  Date: 

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Project                                                                                   Project ID                                                                                                  
Project                                                                                   Project ID                                                       
   
Checklist 4 Information on Engineering and Design   Checklist 5 Information on Methods and Processes  
• Does the ������������������������������������� � ��� • Can we combine, simplify, or eliminate any functions?� � ���
• Who designed the project? When?� � ��� • Are any non������������������������������������������������ � ���
• Who determined the requirements?� � � ��� • How is construction performed?� � � ���
• Who must review a change?� � ��� • Why is it performed that way?� � ���
• Who must approve a change?� � ��� • Are there high direct labor costs?� � ���
• Who must approve implementation funding?� � ��� • Has the team identified high���������������������� � ���
•�������������������������������� � ��� • What is the schedule?� � ���
• Does the design do more than required?� � ��� Prepared By:   Date:  �
• What alternates did the designer consider?� � ���

• Why were alternates rejected?� � ���

• Are any changes to the design planned?� � ���

• Do drawings reflect ������������������������� � ���

• How long is it designed to last with normal use (design life)?� � ���

• What is its normal use?� � ���

• What is the measure of life (time, traffic volume, and cycles)?� � ���

• What are the life cycle costs?� � ���

Prepared By:   Date:   �

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Project                                                                                Project ID                                                                                                       
Project                                                                                   Project ID                                                       
   
Checklist 6 Information on Materials and Procurement   Checklist 7 Information on Maintenance   
• Has the team identified any special, hard��������������������������������������� � • Has the team observed the item in ����� � ���
���
�����������������
• Has the team solicited the people who use or maintain it for ideas?� � ���
• What alternate materials were considered?� � ���
• What is normal maintenance?� � � ���
• Why were they rejected?� � � ���
• What is frequency of maintenance?� � ���
• Are the materials used hazardous or difficult to handle?� � ���
• What is level of maintenance?� � ���
• When was the material specified?� � ���
Prepared By:   Date:  �
• Have new materials been developed that would perform the function for less � ���
������
• Has the team interviewed the present suppliers to ascertain any problems � ��� �
��������������������������������
• ����� ���� ��������� ��� ����������� ����� �� ������ ������������ ������� ��� ���� � ���
����������
• Has there been any price, delivery, or quality problem?� � ���

• Is this a single source item?� � ���

Prepared By:   Date :  �

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Project                                                                                         Project ID         Project                                                                                        Project ID       
Checklist 8 Information on Function and Worth  Checklist 9 Creative Phase 
• Has the team assigned costs to each function?� � � ��� • Has the team used creative thinking techniques?� � ���

• Has the team ��������������������������������������� � � ��� • Has the team provided an ����������� ����� ����������� ���� ��������� ���� �
������� ���
• Has the team d������������������������������������������ � � ���
• Has there been cross�������������� � � ���
• Are designs requirements established which do not require any function to be �
���
����������� • Have all members of the team participated?� � � ���

• Are functional requirements exceeded?� � � ��� • Did you set an output goal?� � � ���

• Are unnecessary features called for?� � � ��� • Has the team recorded all the ideas?� � � ���

• Is there a better way to perform the function?� � � ��� • Has the ������������������������������������� � � ���

• Can any function be eliminated?� � � • Has the team reached for a large quantity of ideas?� � � ���
���
• Can we do without it entirely?� � � ��� • Has the team generated ideas without all the constraints of specifications and �
���
���������������������
• Does it cost more than it is worth?� � � ���
• Has the team made a thorough search���������������������������������������������� �
• Has the ���������������������������������������������������������������������� � ��� ���
��������������������������������������������������
��������������������
• Has the team identified all basic functions for this � � � ���
• Do the potential cost savings appear sufficient to make further value engineering � ���
������������������������������������������������� • Has the team mad e a separate creativity phase worksheet available to be filled �
���
�����������������������������������������
Prepared By:  Date:  �
• Has the team dismissed from your thoughts the present way/method of �
���
����������������������������������
�   • Has the team explained the techniques, method of ����������������������������� �
���
�������������������������������������������
• Has the team provided for a sufficient incubation period to permit later addition �
���
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• Has the team made provisions for a follow��������������������������������������� �
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• Has the team ���������������������������������������������������������������������
������������������
Prepared By:   Date:  �

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Project                                                                                         Project ID        Project                                                                                      Project ID     
 
Checklist 10 Design Development Stage  Checklist 11 Presentation Phase 
• Has the team planned the steps required to "sell" the � � ��� • Is the need for a change clearly shown?� � � ���
�������
• Is the problem defined?� � � ���
• Has the team determined the time required for engineering/drawing changes?� � ��� • Is the proposal concise?� � � ���
• Has the team determined when the change��������������������������������� � ��� • Are all the pertinent facts included?� � � ���
• Has the team satisfied the user's needs?� � � ��� • Are dollar savings included?� � � ���
• Did the team have all supporting data available?� � � ��� • Is your value engineering workbook complete and accurate?� � ���
• Did the project meet the operational requirements?� � � ��� • Has the team ��������������������������������������������������������� � ���
• Did the project meet the safety �������������� � � ��� • Is your information complete?� � � ���
• Are the maintenance requirements met?� � � ��� • Has the team prepared back���������������������������������������������� � ���
• Has the team estimated the Life�������������� � � ��� • Can use of vu�������� ������� ����������� ����� ������� ��� ����������� ����� ����� � ���
• Has the team’s��������������������������������������� � � ��� �������
• Has the team identified the type of people who can help ����������������������� � • Has the team established a plan of action that will assure implementation of a �
��� ���
���������������������������������� ��������������������
• Has the team solicited and recorded from specialists?� � � ��� • Is the change described?� � � ���

• Has the team considered all available solutions?� � � ��� • Are there pictures or sketches of before����������������������� � ���

• Has the team considered locally available materials?� � � ��� • Has the �������������������������������������� � � ���

• �������������������������������������������������������������������������������� � ��� • Have all the constraints been considered?� � � ���

• Has the team developed the estimated net savings?� � � ��� • Has the recommendation been presented to the most appropriate responsible �
���
���������������������������
• Has the team examined the alternates for environmental impact?� � ���
• Has the implementation plan been developed?� � � ���
• Has the tea m consulted �������������������������������������������������� � ���
• Have the recommendations been extended to all areas of possible � ���
• Has the team made all the other organizational functions a part of the team and� �
��� �������������
����������������
• Has the improved value design been considered for a standard or preferred � ���
• Does the re����������������������������������������� � � ���
����������
• Has the team reviewed the ���� ������� ��� ������� ����� ���� ������ ���������� ��� �
��� • Has credit been given to all participants?� � � ���
�������������
• If you ��������������������������������������������������������������������� � ���
• Has the team made a strong attempt to overcome roadblocks?� � ���
����������
• Did the team require any additional information?� � � ���
Prepared By:   Date:    
• Has the team consulted all the best reference ����������� � � ���

Prepared By:   Date:   �
 

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Project                                                                                         Project ID        Project                                                                                     Project ID      
Checklist 12 Value Engineering Workbook  Checklist 13 Selection Phase 
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Prepared By:  Date:   

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Creative Blocks
1.� Habitual Blocks

a)� Continuing to use or approve "tried and true" procedures when new
and better ones are available
b)� Lacking a positive outlook; lacking determined effort; conforming to
custom, and relying on authority
2.� Perceptual Blocks

a)� Failing to use all the senses of observation


c)� Failing to investigate the obvious

�������� Creative Blocks � d)� Having difficulty in visualizing remote relationships

� e)� Failing to distinguish between cause and effect



� 3.� Cultural Blocks

� a)� Needing to conform to "proper" patterns, customs or methods

b)� Placing overemphasis on competition or on cooperation
c)� Needing to be practical, above all things
d)� Having confidence and faith only in reason and logic
4.� Emotional Blocks

a)� Fearing making a mistake or appearing foolish


b)� Fearing supervisors and distrusting colleagues and subordinates
c)� Being over-motivated to succeed quickly
d)� Refusing to take any detour in reaching a goal
Probably the single most important factor affecting one's creative
accomplishments is the environment in which he or she must live and work. A
creative atmosphere, characterized by mutual respect for one another's ability
and the encouragement of individual thinking can spur a mind of even average
expressiveness to great heights.

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Reasons for Unsatisfactory Results


This section describes the numerous reasons why a VE study may lead to
unsatisfactory results. These reasons are as follows:
� Lack of Information. The amount of accurate and up-to-date information
limits the effectiveness of VE. Failure to get sufficient and relevant facts can
be due to a misunderstanding of the full requirements of the original
project or a lack of knowledge about available resources.
� Wrong Beliefs. Decisions that are based on erroneous beliefs, rather than
facts, compromise the effectiveness of VE. For example, planners who make
decisions on what a design should accomplish might not properly sense the
public's needs. Another example is that of a designer that holds an
inaccurate prejudice against a specific resource, and thus might make an
�������� Reason for Unsatisfactory Result improper choice of the best technological alternative.
� Habitual Thinking. It is essential that the VE team keeps up with the state-
of-the-art technology and methodology because thinking and doing things
in the same way is a frequent cause of poor value. Most people have a
tendency to re-use what worked the last time, or to copy the standard set
by others without considering the situation. Habitual thinking is also
inadvertently promoted by management, through rigid use of a given set of
standard designs, procedures, and customs.
� Risk of Personal Loss. The tendency of risk averse decision-makers to
stick with previously successful methods, as opposed to more relevant
methods, reduces the effectiveness of VE. When decisions are based on past
experience of "nearly-related" data rather than on something new or
unfamiliar, it is difficult for best new ideas generated in a VE study to be
chosen.
� Reluctance to Seek Advice. Designers and planners are often very
reluctant to seek advice from others because they fear it may be seen as a
sign of incompetence. Architects, planners and engineers should seek the
advice of other competent experts, as they may be able to provide
additional insight into the problem. By consulting others, they will be
better able to achieve maximum design value.
� Time Constraints. When a project appears on a long-range or annual
construction program, there is often a critical demand that the project stay
on schedule. Frequently, the time pressure is so great that it is impossible
to consider properly, if at all, the value of the design approach in
development. In cases like these, the designers usually find it necessary to
accept the first workable solution to a problem in order to complete the job
on time. Seldom is there time to contemplate ideas, or to design for value
by developing alternative approaches. When designs are developed under
these conditions, they are normally good candidates for a value study.
� Negative Attitudes. VE will not work when decision makers are reluctant
to make a change of any kind regardless of the merits of the proposal,

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especially if the change directly affects their plan or design. The same is
true when value teams feel they always provide the best value in their
approach, even when only a few of the VE techniques and procedures were
used in their studies.
� Changing Technology. When a Value Team fails to recognize and consider
rapid strides in the development of processes, products, and materials, it
limits the potential for uncovering higher-value adding alternatives. The
team must remain cognizant of the constantly changing, and many times
more inexpensive, ways of performing necessary functions.
� Strict Adherence to Requirements. Requirements and published
standards are often unrealistically specific regarding performance,
materials, safety or procedures. Sometimes the planner or designer
assumes requirements are specified when they are not. Traditionally,
designers have concentrated on developing designs that exceed all known �������� Terms of Reference for Hiring Value
and assumed requirements. The net result is over-design, with attendant
waste of taxpayer funds. The VE team must challenge the requirements to Engineering Consultants�
determine if they best meet a need of the project, or just satisfy the
published standards.


� Performance At Any Cost. When a problem is identified, the natural �
reaction is to develop a design that will solve it completely. However, this �

may lead to a solution with a cost that far exceeds its value. The cost of �

solving 95% of the problem may be within reason, but solving the �
remainder can unreasonably increase the cost. Solving 95% of the �

problem, and using the remaining funds to solve other critical problems �
may be a more prudent approach. �


� Poor Human Relations. If the various specialists on complex projects do �
not work together, they are likely to work at cross-purposes, wasting a �

great deal of effort, with a final product that lacks value. Lack of good �
communications, misunderstanding, jealousy and normal friction between �

human beings is a frequent source of unnecessary costs. Infrastructure �

projects require the talents of many people, and good human relations are �
especially critical. �



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1.0 INTRODUCTION.................................................................................................................................. 1

2.0 SCOPE OF WORK..................................................................................................................................1


Pro Forma
3.0 REQUIRED QUALIFICATIONS.................................................................................................2
Terms of Reference
4.0 SPECIAL REQUIREMENTS .................................................................................................................3
for
5.0 PROPOSAL FORMAT ..........................................................................................................................3
Hiring Value Engineering Consultants
6.0 SELECTION PROCESS.........................................................................................................................3

List of Exhibits

EXHIBIT “A”-Scope of Work (Optional)


This document is based on a TOR provided by
SAVE International, which is available, no
charge to organizations and Agencies considering
the retention of a Value Engineering Consultant.
The document is provided as a guideline only. This
document will require modifications to suit
individual circumstances .

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1.  INTRODUCTION iv.� Conduct a validation of the estimated project, product, system or study object
Insert Name of Client (“the Client”) is seeking a qualified value engineering consultant costs.
to provide value analysis, value engineering, value enhancement, value management 4.� Workshop(s) i s/ are to be conducted using a job plan consistent with SAVE
(SELECT ONE) services related to Insert name of project, product, system or study object. International guidelines for value studies. The workshop(s) will be conducted in
Describe project, product, system or study object. The objectives of the value engineering the location identified in this Request for Proposal. The facility in which the
consulting assignment are: workshop(s) will be conducted will be provided and paid for by the Client or
Consultant (INSERT ONE). Each value engineering workshop will consist of the
1.� To identify potential changes to the project, product, system or study object
following six phases conducted over a period of Insert Number consecutive days:
design that would satisfy the essential functions of the project, product, system
or study object at a lower (capital or life cycle) cost. i.� Information Phase
2.� To identify potential changes to the project, product, system or study object design ii.� Function Analysis Phase
that would better accomplish the essential functions of the project, product, system
iii.� Creativity Phase
or study object while providing better overall value.
iv.� Evaluation Phase
3.  To improve confidence in the effectiveness of the design (if applicable).
v.� Design Development Phase
4.� To provide additional input into selected project, product, system or study object
vi.� Presentation Phase
decisions (if applicable).

5.� (Other objectives as appropriate). 5.� Following each value engineering workshop, conduct the following activities:

i.� Submit a preliminary value engineering report in electronic and hard copy
2.  SCOPE OF WORK format, consisting of the workshop work products within fourteen (14) days
of the completion of the value engineering workshop.
It is intended that the selected value engineering consultant will conduct Insert Number
value workshop(s) to be conducted in Insert Location over a period of Insert Number ii.� Review the design team written responses to the preliminary value
month(s). engineering report.
The work will consist of the following individual tasks: (or as detailed in Exhibit “A” Scope
iii.� Consult with the Value Team members as necessary, and prepare for a
of Work:)
decision-making meeting.

1.� Communicating with the Client’s project manager either in person or by iv.� Attend the decision-making meeting and provide information to the
telephone, and reaching a decision about the details of the value study including decision-makers at the meeting relative to the pros and cons of each value
the duration of each proposed workshop. recommendation. Respond to the concerns raised by the design team and
others, and assist the designer, design project manager and the Client project
2.� Communicating with the Client’s project manager either in person or by telephone manager in reaching decisions about whether to incorporate each value
to review the project, product, system or study object and the project, product,
engineering recommendation into the project design.
system or study object issues and reach an agreement regarding the date for the
value workshop (s) and the team members to be provided by the Client, if any, v.� Prepare a draft final report within fourteen (14) days following the decision-
and by the Value Engineering Consultant, if any. making meeting that documents the entire VE study, including the decisions
made.
3.� Prior to the value workshop accomplish the following activities:
vi.� Make appropriate revisions to the draft final report based on comments
i.� Coordinate workshop logistics. from the Client project manager, and provide an electronic and Insert
ii.� Review the design documents and other documents about the project, Number hard copies within fourteen (14) days following receipt of
product, system or study object provided by the Client with the Value Team comments from the Client project manager.
members.
iii.� Using information provided by the Client and by the design team, prepare
cost, energy, life-cycle cost, space and/or other models as appropriate.

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3.  REQUIRED QUALIFICATIONS Electronic copies may be transmitted by e-Mail to: Insert e-Mail Address
The value engineering consultant shall provide the following team members: Proposals received after the date and time specified will not be considered.
1.� A value team leader who is certified by SAVE International as a Certified Value
Specialist (CVS). Inquiries During the Proposal Preparation Period
2.� An assistant team leader who, at minimum, is certified by SAVE International as an Inquiries during the proposal preparation period may be addressed to:
Associate Value Specialist (AVS). Insert Name
3.� Technical specialists with appropriate qualifications (List Required Specialists Insert Title
including quantity surveyors if required).
Address Line 1
4.� Supporting clerical and administrative staff to participate in the workshops and
assist with the study documentation. Address Line 2

The value engineering consultant shall demonstrate corporate experience pertinent to Any City, Any Country
the subject matter of the value engineering study. Insert Telephone and Facsimile Numbers
Insert e-Mail Address
Answers provided to proposer questions are intended to improve the proposer’s
4.  SPECIAL REQUIREMENTS understanding of the requirements of the request for proposal and the project
The selected value engineering consultant will be invited to enter into a contract in the requirements. No verbal information provided to proposers will in any way change
standard SAVE International Form of Contract for Value Consulting Services and to begin the requirements or provisions of this request for proposals. Any changes to the
work within fourteen (14) days of notification to proceed. Request for Proposal will be made in writing in the form of an addendum that will be
sent to all holders of record of the Request for Proposal.
Insert special conditions of contract, if any, including expectations of the Value Engineering
Consultant related to venue, equipment and related matters.
Evaluation and Selection Procedures

5.  PROPOSAL FORMAT All proposals will be evaluated on the basis of the following technical criteria:

Proposals are requested in the following format: Criterion Weighting


Understanding and Approach 25%
1.� Cover Letter
VE Team Leader Qualifications 25%
2.� Table of Contents VE Team Member Qualifications 25%
3.� Introduction/Understanding of Scope of Work Previous Experience and Performance 15%
4.� Proposed Methodology and Delivery Schedule Availability and Schedule 10%
5.� Corporate Qualifications and Experience (including client references) Brief
Biographies of Key Personnel Depending on the results of the evaluation of proposals, interviews may be conducted
6.� Fee Proposal (include under separate cover) Other Considerations with a short list of the proposers to make the final selection of the firm to conduct this
work. If interviews are required, the shortlisted proposers will be advised of the date
and time for their interview. Each firm will have one hour for their interview process.
Please include detailed resumes and additional corporate information, if so desired, in The first 30 minutes will be spent in a formal presentation by the firm expanding on the
appendices. All Proposals shall be clearly marked on the outside with the following: information provided in their proposal. The second 30 minutes will be spent responding
“Proposal for Value Engineering Consulting Services for Insert Project, Product, System or to questions from the interview panel. The final selection will be based on the same
Study Name”. criteria listed above, and will use the same weights as indicated for the proposal
evaluation.
Once the highest rated firm has been selected, Insert Name of Client will endeavor to
6.  SELECTION PROCESS negotiate a contract with that firm. Should the two parties not be able to successfully
negotiate a contract for the services, negotiations with the highest rated firm will be
Submission Deadline terminated and negotiations will be opened with the second highest rated firm and so
Proposals are due by Insert Date and Time at the following address: on.
Address Line 1 Insert Name of Client reserves the right to reject any and or all proposals.
Address Line 2
Any City, Any Country

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SCOPE OF WORK FOR VALUE STUDY


The Client will distribute the project documents and materials to be studied to the study
EXHIBIT team members at least five working days prior to the workshop start. All team members
“A” except the cost estimator are to spend _ (4-16) hours reviewing the project documents
and materials prior to the start of the workshop. The cost estimator will spend (12-24)
The Value Engineering Consultant will provide the following services in accordance hours reviewing the documents and validating the cost estimate provided by the Client.
with this scope of work and the terms of the Agreement:
WORKSHOP
CONSULTANT STUDY TEAM
The Value Engineering Consultant will conduct a - hour value engineering workshop
The Value Engineering Consultant will provide the study team members identified below: using a six-step job plan that is consistent with the best management practices
recognized by SAVE International. The workshop will include an Information Phase, a
Function Engineering Phase, a Creative Phase, an Evaluation Phase, a Design Development
Name Required Qualifications Phase, and a Presentation Phase. A (site, plant or facility) visit for the team members will
_________/Team Leader be conducted on the first day of the workshop. (optional)
_________/Asst. Team Leader (if applicable)
_________/ Team Assistant (if applicable)
_________/ Subject Matter Specialist (if applicable) The workshop will be initiated by presentations from the Client, who will describe the
_________/ Subject Matter Specialist (if applicable) objectives of the Assignment and any constraints that will be placed on the study team.
The designers will explain specifically how the design accomplishes the Client’s objectives
_________/ Subject Matter Specialist (if applicable)
and the details of that design. The workshop will include a detailed function engineering
_________/ Subject Matter Specialist (if applicable)
of the major project elements. The team will generate a list of ideas for project
improvement followed by an evaluation of those ideas. This evaluation will include input
from key Client decision makers before proceeding with development of
recommendations. On the last day of the workshop, a presentation of the
recommendations will be provided to the Client decision makers and key representatives
of the design team.

__________/Cost Estimator
The workshop will be held at , in .
The Client will provide all other team members, at no cost to the Value Eng i nee ri ng The cost of providing the workshop refreshments and all other costs associated with the
Consultant. The Value Engineering Consultant will communicate directly with all study meeting facilities, including telephone, photocopying, and sending fax will be borne by
team members as needed relative to scheduling, pre-workshop, workshop and post ___________.
workshop activities.
To ensure that the study team has complete information about the project criteria, the
Client will provide at a minimum, the Client Assigned Manager and appropriate key
PRE-WORKSHOP ACTIVITIES members of the design team for the first day and last day presentations as well as the mid-
point review meeting.
The Value Engineering Consultant will perform pre-workshop activities to include those
tasks that must be accomplished in order for the study team to be able to efficiently and
effectively perform in the workshop. POST WORKSHOP

These activities will consist of: The Value Engineering Consultant will conduct a four-hour post-workshop study Decision/
Implementation Meeting at ____________ location in the _______ area following receipt by the
1.� Scheduling study tasks.
study leader of the written designer responses to the Preliminary Report. The purpose of
2.� Scheduling and coordination with study team members. this Decision/Implementation Meeting is to assist the Client in making decisions regarding
3.� Assisting the Client with scheduling study participants. acceptance or rejection of the individual value proposals. Attendees will consist of key
4.� Coordinating necessary project documentation on the project for distribution by Client staff, key designer staff and the study team leader.
the Client to the study team members document review by Value Engineering
Consultant-supplied team members.
5.� Preparing cost, energy, life cycle cost, space models, etc. contingent on supply by
Client of the information needed for their preparation.

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SCHEDULE

The work will be performed in accordance with the following schedule:

Pre-Study Activities Upon receipt of a signed contract and notice to


proceed
Workshop(s) ***Insert workshop dates****
Preliminary VE Study Report Fourteen (14) days after completion of the
Workshop
Decision/Implementation Meeting On a date to be determined by The Client, The Value
Engineering Consultant, and the designer
Draft Final VE Study Report Fourteen (14) days after the
Decision/Implementation Meeting
Final VE Study Report Fourteen (14) days after receipt of CLIENT
comments on the draft report

DELIVERABLES

This value study effort will include the following deliverables, all of which are related to
the results of the workshop. These deliverables are:
1.� Study Team Presentation Handout
2.� Preliminary Value Study Report
3.� Draft of the Final Value Study Report
4.� Final Value Study Report

The Preliminary Report will be prepared in the Value Engineering Consultant report
format, and will be a compilation of the handwritten products developed in the workshop.
The draft Value Study Report will be prepared in the Value Engineering Consultant report
format. The purpose of this draft report is to give the Client and other appropriate
reviewers the opportunity to check the final Value Study Report prior to its final issuance.

The final Value Study Report is the final documentation of the VE study. The report is a
finalized version of the Draft Report including the incorporation of the Client’s comments.
The submittal of the final report concludes the Assignment.
THE CONSULTANT will provide the Client with the following number of copies of each
report:
1.� Preliminary VE Study Report (fill in # of copies desired)
2.� Draft of Final VE Study Report (fill in # of copies desired)
3.� Final VE Study Report (fill in # of copies desired)

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