Value Engineering can be defined as a systematic method for improving the value of goods and services using an evaluation of the required function to establish its worth.  Value is the ratio of the worth to cost so value can be increased by either increasing the worth or decreasing the cost.  The primary tenet of Value Engineering is that the quality (function) not be reduced as a consequence of pursuing value improvements.

Value Engineering began at General Electric Co. (GE) during World War II. Because of the war, there were shortages of skilled labor, raw materials and component parts. Lawrence Miles and Harry Erlicher of G.E. searched for acceptable substitutes. They noticed that that these substitutions often reduced costs, improved the product, or both. What started out as an accident of necessity turned into a systematic process. Miles and Erlicher dubbed their technique, “value analysis.” As others adopted the technique, the name gradually changed to Value Engineering.

Information from Wikipedia, the free encyclopedia, http://en.wikipedia.org.

There are four steps to primary value analysis within the Value Engineering process:

1.  Information gathering and function analysis

2.  Creativity and idea generation

3.  Evaluation and development of viable ideas into detailed alternatives

4.  Presentation of alternatives for selection and implementation

There are four customary phases of a design project established by both the Engineers

Joint Contract Documents Committee (EJCDC) and the American Institute of Architects (AIA).   

I. Study and Report Phase (AIA Schematic Design Phase),

II. Preliminary Design Phase (AIA Design Development Phase),

III. Final Design Phase (AIA Construction Documents Phase),

IV. Construction Phase, including Bidding or Negotiating

Professional Engineering Associates, Inc. (PEA) looks for opportunities to implement the systematic value engineering process at each of these project phases, though for many aspects of the project the primary value analysis occurs in the study and report and preliminary design phases.  The Study and Report phase lends itself well to the information and functional analysis through the creativity steps of the value analysis process while Evaluation, Development and Presentation steps should occur during the Preliminary Design phase.  The selected ideas are implemented at the Final Design phase.

The Preliminary Site Assessment report is the hallmark of PEA’s value engineering program.  Through discussions with the client, research and meetings with the jurisdictional agencies and a field investigation occurring at the Study and Report/Schematic Design phase, PEA determines the required function, the governmental permit requirements and the physical conditions affecting the project development. 

The Preliminary Site Assessment report is instrumental in identifying potential roadblocks or delays to the development at the earliest possible stage so solutions or adjustments in scope can be implemented in time to keep the project on schedule.  This allows more ideas to be evaluated in seeking value in the development with less necessary redesign.

PEA can also review existing geotechnical and environmental reports for the property as part of the Site Assessment Report to help identify potential construction issues and recommend solutions or additional study as needed to keep the project on track.  PEA can conduct a geotechnical investigation using in-house staff or, for some out-of-state sites, coordinate the services of a local expert where conditions merit it. 

Our firm can use Autodesk land desktop to analyze earth change and slopes for the proposed development.  Using the Autoturn program, PEA can evaluate truck accessibility when necessary for the development.  When conducted at the Preliminary Design phase this allows for adjustments to the geometry and grading design as needed to help meet the client’s objectives while improving value in the final design.

Value at the Final Design/Construction Documents phase can be created by considering future maintenance in the grading of pavements and placement of site utility structures.

Services to evaluate contractor suggested substitutions can help improve value during the Bidding/Negotiation phase and the Construction phase.