ABSTRACT
Value engineering (VE) is a structured process used to assess a project design to ensure that project goals are met efficiently and effectively. It is included here as part of the construction process because historically it has been driven by the contractor. This has resulted in the process being condemned as a vehicle for stripping cost out of the project so that contractors can increase profit. It is not unusual for VE to be used as a panic measure once it is realized that a project is going over budget. The principles should be integrated throughout the design process as life cycle or whole life costing. Although VE can be facilitated by the project cost consultant, there are merits in using an independent facilitator at key decision-making stages during the design and procurement processes. However, the later in the process the VE exercises are carried out the less the latitude for making fundamental changes to the design. This is another very powerful argument for the contractor to be involved from a very early stage of the design process (refer to Chapter 4.1 Tendering Process).
