Value Engineering - Design-Build for Water and Wastewater Projects - page 250

Value Engineering for Best-Value Selection
In the case of a best-value selection, the VE process begins in the proposal development
phase. Using this procurement model, each prospective design-builder develops and pres-
ents a technical approach to the project on which the price proposal is based. The appli-
cation of VE in the proposal development phase provides a competitive advantage to the
design-builder that most efficiently uses VE to meet the owner's needs.
Note that in this approach the owner is absent from the VE process because the tech-
nical approach is developed by the design-builder for their proposal.
Value Engineering for Qualifications-Based Selection
For qualifications-based selection with negotiation of scope and price, the design-builder
is selected on the basis of qualifications, ability to deliver the project on time, and experi-
ence in DB delivery, all of which are critical attributes of a design-builder. The owner and
design-builder then work in concert to develop the project details, scope, and cost. Using
this process, the owner is afforded the maximum opportunity to participate and come to
a full understanding of how each individual decision affects function and cost, which are
the two variables that define value.
The advantage of this method of procurement is that it engages the owner in the VE
process during development of the technical approach and price, which is critical to the
project.
STEPS TO PERFORMING VALUE ENGINEERING
IN DESIGN-BUILD PROJECTS
The following discussion focuses on VE for a qualifications-based selection, where the
owner can be involved in the process. SAVE International has developed a general three-
step approach to conducting VE analyses, and it can be adapted easily to DB projects.
Step 1: Define the Value Engineering Program
The first step in performing VE is outlining or defining the VE program. This is always
an owner-based decision and is based on the owner's perception of return on investment
(ROI) for the VE effort. Several agencies have documented cost savings resulting directly
from the application of VE to their projects (Table 20-1). These agencies have provided
cost/benefit ratios associated with their programs that clearly illustrate the benefits of
their VE programs.
Outlining the VE program includes decisions regarding when to conduct the VE
analysis and if multiple analyses with progressively different focus points are desired. It
also includes decisions regarding who should conduct the VE analysis.
Step 2: Assemble the Value Engineering Team
Formal VE studies should be led by a trained facilitator (i.e., a Certified Value Specialist;
CVS). The CVS assembles the VE team. For DB projects, VE analysis is most effective