6 Steps of Value Engineering Methodology

Value engineering is also called value analysis in the construction industry, And it is the most crucial step in the value management process. 

The Hard definition of Value engineering is, “Value engineering is the process of optimizing or improving project or product to deliver its maximum functionality or capabilities without spending much cost and without damaging the quality of it.”

In simple example with simple words, A client wants to build an apartment building. This client has a specific budget in their mind. And a particular outcome of the building such as the number of floors, look, facilities etc. In the value engineering process, the client can optimize these expected outcomes according to the available budget without harming the quality required.  

There is a standard methodology followed in the value engineering process by experts. There are six phases or six steps in this process. in this article; We discuss those steps.

Value engineering
Image Credit-pixabay.com/users/moritz320-1260270/

The methodology of value engineering in construction

Gathering of information

The building team (value engineering team) should carefully gather the design information, such as critical elements, each fundamental purpose, cost of the component, the absolute value after build etc. In this phase, the value engineering team can identify the element’s secondary function and the primary function. As an example, the Air condition system of a building. The purpose is controlling the heating and ventilation of the building. HVAC system gives a high value to a building. Also, it has a running cost as well as an initial implementing cost.

Speculation phase

In this phase, the value engineering team identifying the alternative designs to the critical elements. These designs will not be affected by the anticipated purpose and the quality of the component. These alternative design can be a partial adjustment to the initial design. Further to the same example of the HVAC system, different industry systems control a building’s heat and ventilation, such as all air systems, all water systems, etc.


The value engineering team is comparing each alternative design in this evaluation phase. All the alternative design ideas are carefully evaluated to ensure there will no reduce deviations from the original functionality. After justifications, the best solutions are selected to implement. Elaborating the same HVAC system example, There are so many things to compare between HVAC system, cooling capacity, energy consumption, maintenance cost are few of those. But by comparing these functionalities VE team can decide on the best HVAC system price-wise and quality-wise.

Development phase

In the development phase, the value engineering team is developing the selected alternatives to achieve the anticipated purposes and the value of the element. Some small variations will be added to ensure alternative designs are fully capable of achieving their function, similar to the initial design at a reduced maintenance cost and initial cost.

Presentation phase

At this phase, the design team will meet the value engineering team, and they will report their suggestions and recommendations to the design team. The recommended ideas’ worthiness must be communicated to the design team prudent manner to persuade the design team.

Audit phase

In this stage, the design team is doing auditing to the implemented recommended value engineering options. After that, progress or problems will be reported to the value engineering team’s concerned parties.

Case Study for value engineering in construction


The project is an 11 stories apartment housing building worth 52 million which followed the design & building procurement method. The owner of the building more concerned about the durability of the building. Therefore design team has proposed cast place durable concrete with extra reinforcement. Also, to assure the durability design team has decided to change the window thickness. Most of the cabinets and the finishes also changed to guarantee the durability of each element. Energy-efficient light fittings and the appliances like High-Efficiency Aaon, High-Efficiency VRF system, High-efficiency garage lighting, 1.5 GPM showerheads and faucets units.

They also choose to use ENERGY STAR Qualified Refrigerator, Clothes Washer, Qualified Dish Washer (25% Improvement) as appliances.

Apart from that Fixed building shading, self-shading are installed to guarantee low energy consumption of the building.

Value engineering
Figure 4-Square 1400 Energy Model –Courtesy of SB Partners

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