Transcript I-15 Reconstruction

Value Engineering
Definition
Value Engineering (VE) is defined as a systematic
process of review and analysis of a project, during the
concept and design phases, by a multidiscipline team of
persons not involved in the project, that is conducted to
provide recommendations for:
1.providing the needed functions safely, reliably,
efficiently, and at the lowest overall cost;
2.improving the value and quality of the project; and
3.reducing the time to complete the project.
http://www.fhwa.dot.gov/VE/
More Discussion
Value engineering promotes the substitution
of materials and methods with less expensive
alternatives, without sacrificing functionality
or performance. (Cost centric viewpoint)
In addition to cost reduction, value can be
added to a project by improving performance,
safety, and reducing construction time
without significantly increasing cost.
VE on Transportation Highway Projects
This Final Rule modifies Federal regulation, Title 23 Code of Federal
Regulation (CFR) part 627, to reflect the revisions made in Federal law
(Section 1503(a)(3) of Moving Ahead for Progress in the 21st Century Act,
MAP-21). The changes to the regulation are:
• Increases the project thresholds for required VE analyses to;
• Projects on the National Highway System (NHS) receiving Federal
assistance with an estimated total cost of $50,000,000 or more; and
• Bridge projects on the NHS receiving Federal assistance with an
estimated total cost of $40,000,000 or more;
• Removes the VE analysis requirement for projects delivered using the
design/build method of construction; and
• Provides VE analysis guidance for projects delivered using the
construction manager/general contractor (CM/GC) method of project
delivery.
Value Engineering – Return on Investment
What a “Formal” VE study might entail
• This first phase requires an assembling a package to
distribute information to invitees. Plus oral
presentation at beginning of study.
Aug. 22, 2007
Americas CF&S Kick Off Meeting
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The fun part
• Function Analysis Phase- The
purpose of this phase is to clearly
identify the function of the
project and to formulate a
concept from which new
direction can be taken.
• Speculation Phase – The study
team embarks on a brainstorming
session. Quantity and free
wheeling are the goal…Criticism is
not allowed. The product is
ideas.
• Analysis Phase – The analysis
phase reduces the speculation list
by evaluating each idea
Aug. 22, 2007
• A reasonable timeframe would be
a few days to complete this.
• Attendance by project members,
engineers and scientists from
other similar type projects and
folks from industry.
• Strongly suggest getting an
outsider to proctor the process
Americas CF&S Kick Off Meeting
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Fun’s over
• Development Phase -Those
feasible ideas that survive the
analysis phase are then
developed into proposals.
Alternate designs are made,
depiction of “Before” and “After”
is generated.
• Presentation Phase – A
presentation is made to those
who have interest.
Aug. 22, 2007
• Real engineering, real work, is
required in this phase, no more
hand waiving. Impacts on
stakeholders, impacts on costs,
performance, science all need to
be studied.
• Informally presentations can be
made to management, formally
would be submittal to change
control
Americas CF&S Kick Off Meeting
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More on Cost
Life Cycle Cost Analysis
Life-cycle cost analysis (LCCA) is a tool to determine the most
cost-effective option among different competing alternatives
to purchase, own, operate, maintain and, finally, dispose of
an object or process, when each is equally appropriate to be
implemented on technical grounds. For example, for a
highway pavement, in addition to the initial construction
cost, LCCA takes into account all the user costs, (e.g., reduced
capacity at work zones), and agency costs related to future
activities, including future periodic maintenance and
rehabilitation. All the costs are usually discounted and total
to a present day value known as net present value (NPV).
This example can be generalized on any type of material,
product, or system.
http://en.wikipedia.org/wiki/Lifecycle_cost_analysis
VE Example - UTA Light Rail Embankments
West Valley Line
UTA –Light Rail – Salt Lake City, Utah
Light Rail Embankments
UTA –Light Rail – Salt Lake City, Utah
Geofoam for Rapid Construction
Cost and Schedule Information – UTA Trax Project
Salt Lake City, Ut
Geofoam for Rapid Construction
Cost and Schedule Information – UTA Trax Project
Salt Lake City, Ut
Geofoam for Rapid Construction
Cost and Schedule Information – UTA Trax Project
Salt Lake City, Ut
Cost for Rapid Construction
UTA TRAX ground improvement and embankment cost comparison
450
400
350
300
Cost ($ /
cubic
yard)
250
200
150
100
50
0
Surcharge only
Geofoam
Prefabricated
Drains &
Surcharge
Soil Mixing
Stone Columns
Cost and Schedule Information – UTA Trax Project
Salt Lake City, Ut
Schedul for Rapid Construction
UTA TRAX ground improvement and embankment schedule comparison
45
40
35
30
Time
(months)
25
20
15
10
5
0
Surcharge only
Geofoam
Prefabricated
Drains &
Surcharge
Soil Mixing
Stone Columns
Cost and Schedule Information – UTA Trax Project
Salt Lake City, Ut
Discussion
How might the principles of Value Engineering
be applied to the feasibility / alternative
study?