Value Engineering and Value Management

Question 1

What is Value for Money

Answer 1

VFM is achieving the best possible outcome using the resources expended

Question 2

Definition of Value Engineering

Answer 2

Value engineering is a process designed to maximise value through either:
− improved design,
− enhanced function,
− reduced capital cost
− reduced risk
− or reduced whole life cost of the asset being constructed.

Question 3

What is the process for VE?

Answer 3

1) Understand the problem
2) Identify different solutions
3) Evaluate the different solutions
4) Develop the shortlisted solutions in more detail
5) Identify the best solution and make recommendations

Question 4

Can you offer an example of a VE opportunity that you implemented on LTH

Answer 4

Changing aluminium windows to aluminium composite, £800/m2 vs £450/500m2

Question 5

What do you understand by the term VE?

Answer 5

Solve problems, eliminate unwanted cost, while maintaining quality and function

Usually done at S2 - S4 phases

Question 6

What do you understand by the term VM?

Answer 6

Establish early what value is for the client and managing that throughout the design stages
Manage expectations and value for money against quality
Assess clients KPI’s and what is value?

Question 7

When does the VE/VM process occur?

Answer 7

1. Preparation and Briefing 1
2. Concept - VM Workshop
3. Developed design- VE
4. Technical design- VE

Question 8

What are the limitations of VE?

Answer 8

1. Assumes all parties have a common understanding of functions being provided.
2. Assumes all feasible design alternatives provide same level of functional performance
3. THEREFORE assessed on basis of cost alone.