Value Engineering in Preconstruction and Construction

TRB's National Cooperative Highway Research Program (NCHRP) has released Synthesis 78: Value Engineering in Preconstruction and Construction. The results of value engineering (VE) applications to preconstruction and construction operations in eight states and the experiences of the U.S. Army Corps of Engineers are reviewed. The results indicate that the application of VE concepts, principles and techniques is effective enough to warrant increased use by state highway and transportation agencies. Best opportunities for initial application appear to exist in preconstruction, with emphasis on application to standard plans and specifications and on design criteria and guidelines. Data also indicate that savings from the implementation of a value engineering incentive clause (VEIC) program for contractors can be significant. Also VEIC programs can be expected to field ongoing benefits for a one- time sharing. This study found that problems in implementing and managing VE programs are more behavioral and organizational than technical. Top management support and middle management understanding and support are essential to the success of a VE program. This synthesis presents guidelines in preconstruction which relate to project selection, timing, participation, standard plans and specifications and design criteria, and the team approach. Guidelines for VEIC programs are presented which focus on the VEIC clause, contractor participation, opportunities for participation, objective appraisal, and the expeditious processing of change proposals.