Application of Value Engineering Methods in Saving Element Construction Costs

Abstract

The construction industry consistently faces pressure to optimize expenditures without compromising project quality and function. Initial project designs, while functionally sound, are often not the most cost-efficient. This research demonstrates the application of the Value Engineering (VE) method to achieve significant cost savings in specific construction elements. The study utilizes the systematic, multi-stage VE job plan, encompassing the Information Phase, Creative Phase, Analysis Phase, and Development Phase. A case study of a multi-story building project is used to identify high-cost elements, such as the foundation, structural frame, and façade systems, which hold the greatest potential for savings. Through functional analysis, the research identifies and challenges unnecessary costs. Alternative materials, designs, and construction methods are generated and systematically evaluated based on performance, quality, and Life Cycle Cost (LCC). The results indicate that the application of VE identified several viable alternatives, leading to substantial potential cost savings from the original estimate, all while maintaining or enhancing the required project functions. This study confirms that the structured application of Value Engineering is a highly effective methodology for optimizing value and reducing costs in key construction elements.