Civil & Site Services Home

Value Engineering

One of the goals of CMT is to incorporate Value Engineering (VE) principles into all of our projects, in an effort to constantly think ‘outside the box’ to achieve the best project value at the best cost.

Value engineering is commonly defined as a systematic method to improve the “value” of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost.

It is a primary goal of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements. In most cases this practice identifies and removes unnecessary expenditures yet maintaining basic functionality.

Value Engineering is not only a good practice, but it is specifically spelled out in Public Law 104-106, which states “Each executive agency shall establish and maintain cost-effective value engineering procedures and processes.”

VE follows a structured workflow and a rational logic technique with an analysis of function to identify relationships as related to value and associated costs.

For example, the Value Engineering process for the Federal Highway Administration (FHWA) utilizes 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
3.  Reducing the time to complete the project

The successful application of the VE process can contribute measurable benefits to the quality of the surface transportation improvement projects and to the effective delivery of the overall Federal-Aid Highway Program.