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Value Engineering Activity Guide Design
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Overview  Value Management and Value Engineering are recognized construction
industry terms which describe the process of driving best Value into the
project by reviewing the project costs versus the required objectives and
performance of a development.
 This is to target and achieve the optimum solution and achieve ‘value for
money’ through the project design and construction period avoid
unnecessary costs to the Client.
 The processes of value management and value engineering start at the
beginning of the project where the benefits of decisions can have the
greatest impact. This is when the most important cost drivers can be
steered to achieve best value, including for example the proposed design,
building form and efficiencies, structural and architectural solutions and
construction methods and materials, specific site and project
considerations and limitations along with desired performance and
specification and quality levels.

Input  Value Engineering (VE) criteria defined by Stakeholders

 Elemental analysis of the project.
 Prioritisation and weighting criteria for VE alternative options for
consideration.
 Narrative and information about alternative proposals including their effect
of the costs and operation of the building.
 Client direction on the acceptance or not of alternatives VE options.

Timing  Value Engineering studies are most effective in the early project stages
before serious design and structural solution decisions are finalised and
developed in detail. During construction value engineering can also be
utilised however typically this will be limited to cost cutting of costs relating
to finishes and fittings elements rather than large scale design and
structural changes.

Roles and  Sector Leads– Responsible for determining the value objectives,
Responsibilities approving the prioritisation and weighting of the alternative solutions and
approve the proposed solutions
 Stakeholders – Input into the determination of value objectives
 Contractors - Input into the functional analysis of the project and propose
alternative solutions, to provide a cost estimate for the design at the
relevant design stages, to identify value engineering opportunities and to
implement the value engineering process and is to update the design with
alternative solutions identified
 Design Teams – Input into the functional analysis of the project and
responsible for providing alternative technical solutions
 Sector Commercial Lead – Responsible for the review and commercial
analysis of the proposed solutions
 Project Manager - Responsible for acting as a facilitator for the Value
Level 0 Policy/Articles
Level 1 Management Plans Technical and
Level 2
Level 3
Process Maps
Activity Guides
Value Engineering Activity Guide Design
Level 4 Tools Assurance
A Always refer to the online version for current practice

Home TDAAG11

Management and Value Engineering exercise and inputs into the

functional analysis of the project
 Cost Manager- Responsible for allocating costs to the alternative solutions

Tools and
References 
1. Identify the main elements of the project.
Steps and
2. Analyse the functions of those elements.
Requirements
3. Develop alternative solutions for delivering those functions
4. Assess the alternative solutions.
5. Allocate costs to the alternative solutions
6. Develop in more detail the alternatives with the highest likelihood of
success.
7. Prepare a list with the proposed solutions and the associated benefits
Output Output 1: List of alternative solutions
Output 2: Evaluation/assessment report/note of the various
solutions proposed
Output 3: Drawings/sketches and associated cost for shortlisted
solutions
Output 4: Value Engineering Report – an updated
evaluation/assessment report describing the rationale behind the
final choice

Quality Checkpoints  VE Solutions proposed from the Contractors are reviewed by the
Project/Design Team
 Project Manager reviews the proposed VE solutions in line with the defined
value objectives and criteria
 Sector Commercial Lead reports on commercial aspects of the proposed
VE.

Contact  For further information, please contact: