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Rethinking Value Engineering
Summary Value Engineering is defined as an organized effort to analyse a project to achieve essential functions at the lowest life cycle cost (GSA, n.d.). Even though a lot of research has gone into successful implementation with examples highlighted in this essay, a survey showed, when uncontrolled, it is “one of the biggest risks” to the built environment (Construction Management, 2021). Therefore, we will discuss if VE is a risk to the industry or redefining it’s use in line with changes in the practice can help it be utilized successfully. Subject Background Figure 1 outlines a systematic VE process developed by both research and experience, with the project component values having to be understood by all stakeholders so that ideas created are viable with the proposed targets. Basic and secondary functions are the focus of VE (SAVE, 2015) and must be defined at the start, with basic functions leading to project failures if compromised. Evaluation methods such as AHP^1 can then be applied to make the different stakeholder views on each function’s worth quantitative, required to justify comparisons and explaining reasoning for different design changes. However, with risk and uncertainty present in all projects and regulations being generic (Engineering Council, 2011), decisions still involve subjectivity, especially during early stages, when parameters are less defined but the most impact is made, highlighted in figure 2. With Judith Hackitt, leading Grenfell’s enquiry, saying that “VE is just cutting costs and quality” (Gerrard, 2018), figure 4 shows the pressures on companies to reduce costs because of inflation, making this even more tempting to investors, with SAVE’s response is that processes not including function analysis are not truly VE (Bethany, 2018). However, research seen in figure 3 shows the obstacles facing implementation, with (Naderpajouh & Afshar,
- suggesting negligence is often due to limited access to information and experience, with teams not willing (^1) Analytical Hierarchy Process Figure 1 - flowchart to show the standardized VE process ( (Designing Buildings, 2021) Figure 1 - flowchart showing the standardized VE process ( (Designing Buildings, 2021) Figure 2 - showing the impact of VE at different project stages (Gordian, n.d.). Figure 3 - graph to show rising construction costs within the UK (Zarenski, 2022)
to risk implementation for consequences of poor execution and documentation, also limiting the ability to present information regarding these changes to guide stakeholders decisions. Developing VE for modern practice Even though investors are on board with lowering embodied carbon (Amiri, 2021), VE is becoming more of a cost-driven process (SAVE, 2015) with less time focussed on the other benefits listed by Humphreys (20 03 ). One alternative target could be to reduce the time of construction processes, which ultimately links to cost. With contractors quoting unrealistic timelines when bidding for jobs (Cornerstone, n.d.), this shows how VE could allow companies to aim towards this, avoiding cutting corners to stay on schedule. By considering alternative methods and materials for each component, this will not only optimize production but improving quality may be more economical over the building lifecycle (Galipoğulları, 2007). Reconsidering human resource management also has time reducing implications on the construction programme improving efficiency and reducing carbon footprint of resources overall. With the carbon budget diminishing, any reduction in embodied carbon is important. The benefit of VE can be seen in a study by Foraboschi et al (2013), where considering alternative RC instead of steel slabs led to an embodied energy reduction of 43%, and a 2,700 tonne carbon reduction on Old Oak Common (Gerrard, 2019) shows the impact preventing over-engineering can have on meeting our CO 2 targets. Figure 3 shows evidence that focusing on carbon savings correlates to economical savings, even when the complete lifecycle was considered to prevent future impact. By challenging standard design approach (Gerrard, 2019), which often assumes the worst case leading to this overengineering, designers can optimize designs whilst maintaining essential function. Making sure that VE utilises a multi-disciplinary team (Humphreys, 2003) is important to increase its viability, with a knowledge base including classified background information enhancing creativity (Naderpajouh & Afshar, 2010) and presenting key parameters to the team. Developments seen in virtual communication such as Teams®, and with 93% of 18 - 29yr olds owning a smartphone (Janssen & Carradini, 2021), this shows how it is now easier for specialists to be contacted so that the process can be better informed. AI technologies can also outline an expert knowledge model, increasing communication efficiency. (Naderpajouh & Afshar, 2010). With 73% of the industry using BIM (Graham, 2021), this also makes information extraction as well as design modifications much easier (Li, et al., 2021). With the risk of considering individual components without considering the whole system, BIM can be used to identify clashes, with 80 days and $87,700 being saved an example (Li, et al., 2021), showing how this allows a deeper focus on individual components with BIM without wider repercussions. Developments within the quantification of BIM also allow allocation of carbon and cost data from different databases, with the impact of interventions able to be clearly analysed (Amiri, 2021), showing how project’s integration within BIM being able to greatly reduce the risk of VE’s negative impact by fully simulating the response of a change. Figure 4 – obstacles facing VE implementation in Iran Figure 6 - correlation between cost and embodied carbon in Sydney case study (Yu, et al., 2020) Figure 5 - possible benefits to using VE ( (Humphreys, 2003)
construction/#:~:text=Value%20engineering%20is%20used%20to,value%20for%20the%20lowest%20cost. [Accessed 13 March 2023]. Gordian, n.d. Value Engineering Risks Design Professionals Must Avoid. [Online] Available at: https://www.gordian.com/resources/value-engineering-risks-design-professionals-must-avoid/ Graham, D., 2021. The rise of BIM in the UK. [Online] Available at: https://www.pbctoday.co.uk/news/digital-construction/bim-news/2020-bim- report/87016/#:~:text=The%202020%20BIM%20Report%20shows,compared%20with%201%25%20in% . [Accessed 14 March 2023]. GSA, n.d. Value Engineering. [Online] Available at: https://www.gsa.gov/real-estate/design-and-construction/engineering-and-architecture/value- engineering#:~:text=Value%20engineering%20can%20be%20defined,quality%2C%20reliability%2C%20and% safety. Humphreys, K. K., 2003. Cost Engineering: a series of reference books and textbooks. New York: Marcel Dekker. Janssen, D. & Carradini, S., 2021. Generation Z Workplace Communication Habits and Expectations. IEEE Transactions on Proffessional Communication, 64(2), pp. 137-153. Li, X., Wang, C. & Alashwal, A., 2021. Case Study on BIM and Value Engineering Integration for Construction Cost Control. Advances in Civil Engineering, Volume 2021, p. 13. Naderpajouh, N. & Afshar, A., 2010. A case‐based reasoning approach to application of value engineering methodology in the construction industry. Construction Management and Economics, 1 September, 26(4), pp. 363 - 372. ONS, 2022. Infrastructure in the UK, investment and net stocks: May 2022, London: Office for National Statistics. SAVE, 2015. About the Value Methodology. [Online] Available at: https://www.value-eng.org/page/AboutVM [Accessed 13 March 2023]. SAVE, 2015. Value Methodology Standard. [Online] Available at: http://www.value-eng.org/pdf_docs/monographs/vmstd.pdf [Accessed 13 March 2023]. Wright, J. D., 2008. Quantification. International Encylopedia of Social Sciences, Volume 2, pp. 655-656. Yu, M. et al., 2020. The impact of value engineering on embodied greenhouse gas emissions in the built environment: A hybrid life cycle assessment. Building and Environment, Volume 168. Zarenski, E., 2022. Construction Inflation 2023. [Online] Available at: https://edzarenski.com/2022/12/20/construction-inflation-2023/
