Value Engineering Trends in the Construction Industry

Abstract

Value Engineering (VE) was developed during World War II as a method to find alternative methods and materials for processes and products that were limited and challenged by rationing. Since its creation, the use of the VE process has extended to the construction industry as a way to maximize the value of a project. This research is being conducted to aid future VE brainstorming efforts by studying past VE studies and looking for trends. 14 VE studies from four construction companies were obtained. One significant finding was that electric, HVAC, plumbing and wall finishes are the best categories to propose VE in because they had a large sample size (20 or more VE items), and the percent of VE items approved in these categories was around or above 70%. This success rate was consistent when looking at the quantity of approved VE items and at the dollar value of the items. The categories that are not recommended for VE are elevators, fire protection, foundations, roof openings, canopies, stair construction, fixed furnishings, general and specialties. One reason for this conclusion is that the monetary value of these categories is less significant. Also, for elevators, fire protection, foundations, canopies, roof openings, canopies and stair construction, they are often specially engineered systems and specialized so there is little that is able to be changed. Fixed furnishings, general and specialties cover so many different topics that there is little consistency among VE items.