As an engineering function, Value Engineering uses a process of function cost analysis to identify features that can be changed to reduce cost without affecting the quality of the facility.
Value Engineering is also known as function analysis of Value Analysis. Ideally, it is applied during the design process, and not after the submission of bids.
Objectives and Goals
- The main objective is to reduce project cost, without reducing the quality.
- Cost reduction can be achieved by taking advantage of the existing streets and utilities, or the prevailing winds and available solar heat.
- There may be cost savings in removing unneeded features such as insulation in walls and roofs in unheated spaces.
- There may be value in simply changing the shape of the sewer pipe from round to oval, based on availability of the specific type.
- The required depth of excavation may be reduced as a result of change.
- Value Engineering changes should produce a facility that still performs the same functions as it did before the change was made.
- The value of the facility should remain undisturbed without cost savings.