Value Engineering - Design-Build for Water and Wastewater Projects - page 247

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Value Engineering
John P. Mitchell, PE, Burns & McDonnell Engineering Inc.
Contributing Authors: Mary Ann W. Lewis, FSAVE, Black & Veatch Corporation, and
Jeffrey L. Raffensperger, Gannet Fleming Inc.
INTRODUCTION
Value engineering (VE) is a proven method of providing alternative design concepts or
materials that will meet project requirements at reduced cost. The process can occur dur-
ing any stage of design but is typically implemented during the early stages to minimize
the adverse effects of redesign. In the municipal environment, VE can be performed for
any project but has gained popularity for designs for water and wastewater facilities due
to their complexity, risk, and cost.
A design review, oftentimes within a workshop environment with experts from vari-
ous disciplines, is conducted to identify design modifications to save equipment and/or
construction costs. The methodology for VE is basically the same for DB and DBB proj-
ects; however, the timing of VE is different for DB. For DB projects, VE is often part
of the proposal development when price is part of the selection criteria (i.e., best-value
selection or price-based). Design-builders strive to achieve the most cost-effective designs
to give them an advantage for selection, and VE is a tool to be more competitive. In a
qualifications-based selection and progressive DB project, where the project's price is not
included in the selection criteria, VE would occur during development of the design and
price, which can be open book (i.e., cost development is shared with the owner).
This chapter explains how VE is accomplished in DB projects and provides examples
of efficiencies that were realized on DB projects.
DEFINITION AND GOALS OF VALUE ENGINEERING
Value engineering is defined as a systematic and structured approach that improves proj-
ects, products, and processes. VE is used to analyze manufacturing products and pro-
cesses, design and construction projects. VE helps achieve balance between required
functions' performance, quality, safety, and scope with the cost and other resources
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