Value Engineering - Design-Build for Water and Wastewater Projects - page 249

Planning Design Construction Commissioning

Operation

Project Life Cycle

Figure 20-1. The benefit of VE throughout the life of the project
In the planning and analysis phase (Figure 20-1), the owner formulates its needs for
function and establishes budget limitations for the project. In the schematic design phase,
the key project requirements and issues are identified and validated, and conceptual cost
components are developed and refined.
In the design development phase, the project is developed to 30 percent, 60 percent,
and 90 percent completion levels. At 30 percent design, design concepts and costs are
validated. At 60 percent design, the major systems are evaluated, and construction and
life-cycle costs are refined. At 90 percent design, systems and costs are refined, life-cycle
costs are validated, and constructability concerns are addressed.
Conducting VE during the construction or commissioning phases of a project enables
the owner and the design-builder to consider alternative concepts, materials, equipment,
and processes that may arise during these phases. The objective analysis offers a disci-
plined approach to analyze the appropriateness of the proposed change to the design and
construction. It is beneficial to apply VE principles and practices to changes in scope that
might occur during construction, in an effort to minimize cost and schedule impacts to
the project.
Value engineering concepts do not change based on the project delivery method. VE
is conducted any time during the project development and delivery time line. Best prac-
tices include conducting VE analysis at each major deliverable design and sometimes a
construction milestone.
The timing and stakeholders involved in the VE process for DB projects vary based
on the DB procurement model pursued by the owner. Although there can be many vari-
ants, the owner's typical procurement model usually falls into one of two types:
1. A best-value selection (i.e., with technical- and price-based selection criteria)
2. A qualifications-based selection followed by negotiation of project details and
price