Value Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperationsValue Engineering practical Applications ... for Design, Construction, MaintenanceOperations
Nature release A1 honse ~ePl'~sola, PE Value for Design, Construction Maintenance'& O],pera tions RSMeans RSMeans Copyright 1997 R.S Means Company, Inc Construction Publishers & Consultants 63 Smiths Lane Kingston, MA 02364-0800 (781) 422-5000 www.rsrneans corn R.S Means Company, Inc ("R.S Means"), its authors, editors and engineers, apply diligence and judgment in locating and using reliable sources for the information published However, R.S Means makes n o express o r implied warranty or guarantee i n connection with the content of the information contained herein, including the accuracy, correctness, value, sufficiency, or completeness o f the data, methods and other information contained herein R.S Means makes no express o r implied warranty of merchantability or fitness for a particular purpose R.S Means shall have no liability to any customer or third party for any loss, expense, or damage, including consequential, incidental, special or punitive damages, including lost profits or lost revenue, caused directly or indirectly by any error or omission, or arising out of or in connection with, the information contained herein No part o f this publication may be reproduced, stored i n a retrieval system, or transmitted i n any form o r by any means without prior written permission of R.S Means Company, Inc The editors for this book were: Mary Greene, managing editor, Robin MacFarlane and Suzanne Morris, manuscript editors Book production was managed by Karen O'Brien and coordinated by Marion Schofield; Michele Able supervised electronic publishing Dook designed by Norman R Forgit Printed in the United States of America Library of Congress Catalog Number 98-106185 ISBN 0-87629-463-8 @ ~ e e ~do n s t t u d i o Data n List of Figures Preface and Acknowledgements xiii About the Author Introduction-ABriefing The Objectives of Value Engineering xix The Reasons for Unnecessary Costs XX When to Apply Value Engineering xxii VE Methodology and Techniques xxii Interface With Other Programs xxvii Demonstrated Impact of VE xxxii Part One: Value Engineering: Practical Applications Chapter One-Project Scope and Budget Elements of the Project Budget Prevalent Budgeting Techniques Cost Control Defining Project Scope Parameters and Parameter Cost Chapter Two-The Capitalized Income Approach to Project Budgeting (CIAPB) CIAPB Objectives Measuring Property Value Table of Contents xvii The Meaning of Capitalization The Capitalization Process The Need for Cost Control Chapter Three-Preparation of Cost Models Making Models Construction Cost Models Other Resources Types of Models Chapter Four-Planning for Value Engineering Services VE Objectives Level of Effort VE and Total Project Management Team Selection The VE Job Plan Chapter Five-Function Analysis Classifying Function Defining Functions Project Level Function Analysis System Techniques (FAST) Diagram Chapter Six-Creativity and Interpersonal Skills Creativity and Fixation Interpersonal Skills Human Factors Creativity Throughout the Job Plan The Generation of Ideas Delphi Technique Value Engineering-A Crafted Strategy Chapter Seven-Life Cycle Costing Decision Makers' Impact on LCC LCC and Total Building Costs LCC Terminologyand Examples LCC Methodology Application of LCC to Buildings Chapter Eight-Integrating VE into the Construction Industry Planning and Design Construction Maintenance and Operations (M&O) Tdk of Contents Chapter Nine-VE Applications to Risk Assessment and Analysis Risk Assessment Risk Analysis 163 163 165 Part Two: Case Studies Case Study One Corporate Office Building Case Study Two Hospital and Staff Housing C~mplex Case Study Three Refinery Facility Case Study Four-Master Planning Competition Case Study Five-Application to Design Review Government Headquarters/C:omplex Case Study Six-Highway Project: South Interchange 299 Case Study Seven-Wastewater Treatment Plant 331 Part Three: VE Workbook Introduction List of Forms Phase 1-Information Phase Phase 2-Function Phase Phase Creative Phase Idea Stimulator Checklist Phase 4-AnalysislJudicial Phase Analysishudicial Phase: Analysis/Development Analysishudicial Phase: Analysis/Ev;tluation Phase 5-Recommendation Phase &Presentation & Implementation Appendix Web Site Resources 40 Value Engineering Services for CM/PM: Typical Scope of Work 409 Glossary of Terms 413 Index 423 Part Four: Diskette Life Cycle Cost Program with Linked Database VE Workbook F o m with Supporting Linkages Tabk of Contents Inside Back Cover Figure 1.1 1.2 1.10 1.11 Life Cycle Costs for a Typical Residential/Office Building The Seven Most Significant Factors Responsible for Savings Actions Potential Savings from VE Applications Major Decision Makers' Influence on Facility Costs The Conventional Approach vs the VE Approach VE Methodology & Techniques Value Engineering Job Plan Static and Dynamic Mechanisms Relationship of Current Activities with VE and Other Techniques Results of VE Programs Value Engineering (VE) Integration into Design 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 Program Budget Elements Cost Control FAST Diagram Elements of a Project Units of Measurement Construction Cost Summary-General Hospital Building Perimeter per Linear Foot Configuration FactorSpace Space Efficiency Factors Whole Bay Working Loads Plumbing Fixture Units HVAC-Cooling HVAC Heating Total Energy Budget Levels Conveying System Quantities 2.1 2.2 Imputed Income Economic Impacts of Cost Changes-Hypothetical Office Building 1.3 1.4 1.5 1.6 1.7 1.8 1.9 List of Figures xviii xxi xxiii xxiv XXV xxvi xxviii xxix XXX xxxiii XXXV 34 Work Breakdown Structure Cost Model-Pretrial Service Center Cost Model-Manufacturing Plant Expansion Cost Model-Wastewater Treatment Plant Cost Model-Highway Interchange Project Cost Model-Water Storage Dam Cost M o d e l e s h o r e 0il.Ga.s Platform Cost Model-Air Separation Facility Space Model-Manufacturing Plant A H Area Take-Off Standards Function AnalysisSpace Energy ModelShopping Center Energy ModelLOil-Gas Platform Energy Model-Administration Building LCC (Present Worth Method) Court House Life Cycle Cost Model Court House Quality Model Quality Model-Research Building 48 50 51 52 53 54 56 Level of VE Effort Nomograph Areas of VE Study by Design Stage Approximate Level of Effort Flow Chart-VE Procedures Work Plan Phases Process Data Requirements Typical VE Study ProcessParticipants and Milestones 59 61 62 66 67 69 71 FAST Diagram Procedures FAST DiagramStadium FAST DiagramGontract Information System (Existing) FAST DiagramGontract Information System (Proposed) FAST Diagram-Large Water Reservoir FAST Diagram-Automatic Fare Collection System LCC Model-Automatic Fare Collection System FAST Diagram-Air Separation Facility Cost Model-Air Separation Facility Function Analysis Worksheet-Hospital Cost Model-Hospital FAST Diagram-VE Study 75 77 78 Creative Ability Versus Age Fixation Solution Styles of Leadership Managerial Grid Adjustiv-Reaction Model Participants' Attitudes During VE Study Rules of Brainstorming Delphi Phases & Cycles 36 37 38 39 40 42 43 44 46 47 79 80 81 82 84 85 86 88 89 92 93 94 97 98 99 101 103 106 List of Figures VE Wmkbook Value Engineering Workbook Value Engineering Workbook VE Workbook Value Engineering Workbook Value Engineering Workbook Study Title Date Study No Team VE Workbook Value Engineering Workbook Value Engineering An organized approach! Job Plan Phases Orientation (Project Selection) Information Function Creative Analysis Recommendation - m = = Presentation and Implementation - Time VE Study The purpose of this workbook is to guide you through application of the VE Job Plan while performing your study Feel free to add additional pages of data to the workbook as you collect information The worksheets are to be used only as necessary for the specific projects They may be added to, deleted from or modiied as necessary The list of forms and their projected usage follows: VE Wmkbook Value Engineering Workbook LIST OF FORMS FORM NO WS PAGE NO DESCRIPTION Attendance For initial briefings, interface meetings, and presentation 373 PHASE - Information Phase WS WS WS WS WS WS Value Engineering Team For listing of team members, contributors, and brief description of team study ma 374 Consultation and Document Record For recording all significant input from consultants/outside experts during the workshop 375 Cost Summary For general purpose cost sheet to record cost data for information phase of workshop 376 General Purpose Model For use in modeling: initial costs, life cycle costs, energy, space, etc May be expanded as required 377 Cost/Worth Model - Buildings For use in VE studies for initial cost modeling using the UniFormat System 378 Construction Cost Summary For use in developing building budget or actual estimate using parameter costs in 379 UniFormat Form can be linked to WS CostIWorth Model - PHASE - Function Phase 380 WS Function Analysis For use as a general purpose sheet to a function analysis WS Function Analysis - Buildings For performing a function analysis for buildings using the UniFormat Costing System Form can be linked to WS - Cost/Worth Model 382 WS 10 FAST Diagram - Procedures For guidelines on how to prepare a FAST Diagram WS 11 FAST Diagram For use as a form to a FAST.Diagram VE Wurkbook Value Engineering Workbook DESCRIPTION FORM NO PAGE NO - PHASE Creative Phase WS 12 Creative/EvaluationWorksheet For listing ideas generated during creativityhrainstonning phase 387 Figure Idea Stimulator Checklist For aiding in the creativity efforts PHASE - Analysis/Judicid Phase Analysis/Development Phase 389 390 WS 13 L i e Cycle Cost (Present Worth Method) For a comparative evaluation of the total cost of alternatives over a given 391 life cycle and interest rate WS 13 Example: Life Cycle Cost (F'resent Worth Method) For an example of the use of the form AnalysisfEvaluation Phase 395 WS 14 Weighted Evaluation For selecting the optimum choice of competing alternates using weighted 396 criteria and an analysis matrix for ranking WS 14 Example: Weighted Evaluation For an example of the use of the form - PHASE Recommendation 398 WS 15 Value Engineering Recommendation For writing up proposals WS 16 Cost Worksheet For generating the original design and proposed alternative/s costs 400 WS 17 Summary of Potential Cost Savings For preparing a summary of all the proposals and their costs 401 - PHASE Presentation & Implementation Figure Outline for Team Presentation For assisting the team in preparing the verbal presentation Note: a fully automated version of the forms is included in the attatch~dCD VE Wmkbook Value Engineering Workbook 402 403 Attendance Project: Location: Item: Date: No Page: Name Company Position Telephone Number VE Workbook Value Engineering Workbook Phase Information Phase Key Questions W What is it? W What does it do? W What must it do? W What does it cost? What is the budget? W What is it worth? Procedures W Get all the facts W Identify all the constraints Determine costs, space, quality parametem W Identify functions Develop Models: Initial Costs, Space, Energy, Life Cycle, Quality W Set target worth Select functions for value improvement VE Workbook Value Engineering Workbook Value Engineering Team Projed: Location: Study Title: Team No Study Date: Sheet No I Team Name Position Telephone Number Turn Ixsder Tam Manbsn Ptrt Tune Cantributar 11 Describe Problem To Be Studied(existing procedure, design, system) VE Workbook Value Engineering Workbook Consultation & Document Record InformationPhase Project: Location: Study Title: INFORMATION SOURCE Name, Title, Organuatlon, or Reference Document Phone No of Apphcable) W O R POINTS O F DATA - GET INFORMATION FROM THE BEST SOURCES VE Workbook Value Engineering Workbook Cost Summary Project: Location: Study Title: Check one; use separate sheet for each Conshuction Cost 0 g r ~ ~ o s t P ReplacementCosts New Estimate GET COST FROM THE BEST SOURCES ws VE Wmkbook Value Engineering Workbook VE Wurkbook Value Engineering Workbook CostlWorth Model Legend: Value Engineering Study AcUia~imated VE Target NOTES: TotalCaaWorth Bldg Type: Area: (SQM) Area: (SQM) VE Floors: I I I I I Construction Cost Summary Project Name: Location: Date: : hU ', , ' - , , , % ::ksb , Area: m, > ' ? h * $"\ A A % / i m ~ s l fm[:r& ' t ? I hfntouro- , / , , :~ ,,: , .,-