Value Engineering - Design-Build for Water and Wastewater Projects - page 252

• Function analysis —This step in the analysis involves the VE team identifying
and understanding the project's basic functions, goals, and constraints. It also
includes some level of needs assessment focused on developing or separating the
owner's primary needs from secondary needs or wants.
• Creativity —Brainstorming is the process in which project alternatives or enhance-
ments are identified. It is important that the VE team remain open to a broad
range of ideas and concepts. Although only a few ideas may be advanced for fur-
ther analysis, this is the most critical part of the study because it is the first step
in defining the outcomes of the VE study.
• Analysis —Analysis is the process by which the ideas and concepts put forth in the
brainstorming exercise are culled and reduced to a number of alternatives that
have the potential to reduce cost or enhance functionality.
• Development —In this phase, the alternatives that advance from the analysis step
are further developed in terms of feasibility, functionality, construction cost, life-
cycle cost, schedule impacts, and risk allocation.
• Cost schedule and risk analysis —When VE analyses are conducted subsequent to
the selection of the design-builder, it is critical that the design-builder be engaged
in the cost schedule and risk analysis, as unilateral changes are not possible with-
out changes in the cost, schedule, and risk profile of the project.
• Presentation of results —This step includes documenting the activities of the VE
team, quality assurance, in terms of cost and functionality validation, and effec-
tively communicating the alternatives of the VE team to the project delivery team.
• Implementation —The goal of the VE analysis in a DB setting is to achieve con-
sensus on incorporation of VE enhancements to the project.
The application of VE in a DB setting can derive the following benefits:
• Encourage the development of effective project delivery teams by building a col-
laborative environment in which the stakeholders (i.e., owner, design-builder, and
VE team) work together to enhance value.
• Generate savings for the owner while enhancing profitability for the design-
builder. A true win-win.
• Minimize risk to the design-builder and owner by leveraging the VE process to
build consensus on project scope and validate costs.
• Increase owner satisfaction and performance of the project by increasing the like-
lihood that the project will meet the owner's expectations.
EXAMPLES OF VALUE ENGINEERING
In this section, several examples of VE outcomes are presented.
Water Plant Example
Westminster, Colo. was faced with the urgent need to increase water production and ini-
tiated plans to construct the Northwest Water Treatment Facility. After completing con-
ceptual (i.e., 10 percent design completion) design, Westminster programmed a 10-mgd