Value engineering / management theory and application Cost Studies

Acknowledgement
At the outset we greatly indebted to Mr.H.A.E.C Jayasena for the assistance given us of the study and provided deepest and clear understand of Cost Studies subject area. Also necessary leadership & guidelines which helped to complete this project successfully.

Also Our thanks go to the all staff of ICBT for furnishing me with all necessary assistance required for the preparation of this Assignment. Last but not the least we would like to thank everyone who provided the real time environment of the nature of our selected Project area, relevant discussions & cooperated to bring this Assignment success.

Value engineering / management theory and application Cost Studies

Table of Contents

Acknowledgement ........................................................................................................... i Table of Contents ............................................................................................................ ii Members of the group .................................................................................................... iii 1.0 Value Management ................................................................................................... 1 1.1 Value Planning ...................................................................................................... 1 1.2 Value Engineering ................................................................................................ 2 1.3 Value Analysis ...................................................................................................... 2 2.0 Value Management Workshop ................................................................................. 3 2.1 Phases of a Value Management Process ............................................................... 3 2.1.2 Information Phase (Phase 1) .......................................................................... 3 2.2.2 Objective Phase (Phase 2) .............................................................................. 8 2.2.3 Functional Analysis Phase (Phase 3) ............................................................. 8 2.2.4 Creative Phase (Phase 4) ................................................................................ 9 2.2.5 Evaluation Phase (Phase 5) .......................................................................... 10 2.2.6 Reporting and Recommendation phase (Phase 6) ....................................... 11 Reference ...................................................................................................................... 12

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Value engineering / management theory and application Cost Studies

Members of the group

N M Infaz Sachi Randima Amry Azeez Jeeshan Ilahi MadhurangaEdirisingha MalinthaPremachandra IshanChandima - QS/MT/01/05 - QS/MT/01/11 - QS/MT/01/69 - QS/MT/01/08 - QS/MT/01/10 - QS/MT/01/09 - QS/MT/01/54

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Value engineering / management theory and application Cost Studies

1.0 Value Management

A systematic multi-disciplinary directed towards analysing the function of the project for the purpose of achieving the best value at the lowest overall life cycle costing. Value management also refers to a change in a project which is not a change in the basic function but act as an alternative with more options / advantages to the particular function. It also has to ensure not to exceed the basic cost as well as the life cycle cost.

Value Planning Value Management Value Engineering Value Analysis

1.1 Value Planning
These are the value techniques apply during the planning phase of the project. Thus value planning studies are those conducted during the briefing or sketch plan stage. The value planning leads to a highly innovative design and alternative which does not affect the future project cost, quality and delivery of the project.

Value engineering / management theory and application Cost Studies

1.2 Value Engineering

This is the title given to the value techniques applied during engineering phases of a project. Value engineering studies are those conducted during the latter part of the design and during the construction stage. There are provisions in the conditions of contract for the value engineering and clauses mentioning about the outcomes E.g.: according FIDIC conditions of contract when a part of a project runs through value management concepts and if there is any savings found it should be evenly distributed among the client and contractor respectively.

1.3 Value Analysis

Techniques apply to completed projects to analyse the project performance. Therefore value analysis studies are those conducted during the post construction period.

The involvement of the project phases in the value management

Value planning
Inception Feasibility Outline proposal Schematic design

Value engineering detail design tender action construction

Value analysis post construction

Value engineering / management theory and application Cost Studies

2.0 Value Management Workshop

2.1 Phases of a Value Management Process
2.1.2 Information Phase (Phase 1)
Actual details of the project must be provided.

Title
VMTC Coordinator: Mr. Amry Azeez Client Representative : Mr. Jeeshan Ilahi Architect: Mr. Malintha Premachandra

Organization
Value Consultants (pvt) Ltd. Provincial Council, Sabaragamuwa Province Design, Project Management and Consultant Division, Urban Development Authority Design, Project Management and Consultant Division, Urban Development Authority Deputy Chief Secretary (Engineering Services) Sabaragamuwa Provincial Council, New Town, Ratnapura Design, Project Management and Consultant Division, Urban Development Authority

Structural Engineer: Mr. Infaz Najeeb & Mr. Iashan Chandima

Quantity Surveyor : Mr. Maduranga Edirisinghe

Services Engineer/ Secretary : Mr. Sachi Randima

Value engineering / management theory and application Cost Studies As in the selected project the actual details of the selected project as follows Project name : proposed construction of shopping complex and pola at Ratnapura

Client : Provincial council, Sabaragamuwa province

Design consultant:Design project management and consulting division, urban development authority

Site details: site is situated in Ratnapura town, in the existing pola area. Near Pothugal Vihara Mawatha. Approximate area of land is 2500

Building details: this building is stepped building of three storied with a basement. The floor areas are as follows Basement floor area = 2350 Ground floor area = 2200 First floor area = 625

(proposed parking and toilets) (shop and pola)

(common hall)

Duration = 12 months Requirements fundamental requirement which the project must possess to serve the client basic intentions were reviewed under the project requirements. The basic requirement of this project is to solve the problems in existing pola area and increase welfare of the vendors and consumers. The finishing design if the projects cannot be changed because the local authority maintains a uniqueness of their own pola building throughout the island

Constraints: UDA Regulations Have to build within existing pola area Budget is highly limited since this is a public funded project (government project)

Value engineering / management theory and application Cost Studies

The structure of the building has been completed

BOQ SUMMARY B D F G H J K P Q S T V W X Preliminaries Excavation and earth work Concrete work Masonry work Water proofing Structural metal work Metal work Roof structure / roof covering Plumbing / sanitary installation Electrical work Floor / Wall / Ceiling finishes Painting General items External drainage system Rs 695,000.00 Rs 4,082,278.59 Rs 46,832,241.01 Rs 4,882,825,50 Rs 755,000.00 Rs 7,667,196.00 Rs 6,475,420.00 Rs 10,021,313.50 Rs 987,447.08 Rs 1,311,475.46 Rs 15,168,785.60 Rs 3,478,996.79 Rs10,650,000.00 Rs 686,448.01

Grand Total

Rs 122,694,427.54

Value engineering / management theory and application Cost Studies Identification Metal work since the total cost of the metal work is below 5% from the total project cost it cannot be assessed for value engineering. (it was considered that elements of cost exceeding more than 5% of the total project would be selected to the value engineering process)

Since the structure of the building is completed, there can be no changes made in the following elements Preliminaries Excavation and earth work Concrete work Masonry work Water proofing Structural metal work

Floor / wall/ ceiling finishes as per the requirement of the relevant government authority they are verily concerned about the outfit / finishing design of the building. ( They maintain a unique out finish for all their buildings throughout the island ) also as there are all 3 sub elements (wall, ceiling and floor) it cannot be assured it will be evenly distributed among all the sub elements

General items as in the general item, it cannot be specifically note out a single sub element or item where it contains number of items and it most of the part of general items are used throughout the project

External drainage system - since the total cost of the external drainage system is below 5% from the total project cost it cannot be assessed for value engineering

Value engineering / management theory and application Cost Studies Painting - since the total cost of the painting is below 5% from the total project cost it cannot be assessed for value engineering

Electrical work - since the total cost of the electrical work is below 5% from the total project cost it cannot be assessed for value engineering

Plumbing and sanitary installation - since the total cost of the Plumbing and sanitary installation is below 5% from the total project cost it cannot be assessed for value engineering

Roof structure / roof covering as per the evaluations and revisions made the only item can be revised for a value engineering process, since it is a major element of the building and also its cost contains exceeds the 5% of the total cost of the project.

Value engineering / management theory and application Cost Studies

2.2.2 Objective Phase (Phase 2)

Interact with the client representative and identifying the issues and requirements. Since it is going to be a public usage building it should be attractive internally and externally. There shouldnt be any alterations and repairs for 10 years of time, because once again the main reason stands on public usage and it cannot be interrupted.

The time cannot be extended, the work should finish within the given construction time limit

2.2.3 Functional Analysis Phase (Phase 3)

Primary Function Weather resistant especially it must hold up the high pressure wind, since it is a 3 story building and there are heavy winds due to the geographical location of the building site (Ratnapura) Sound due to the situation of a common hall in the top floor it is essential to hold up the sound because the building is situated in a town which is crowded and always high sounds produced. Fire it should be more resistant towards fire because it is going to be a public usage building Durability the durability must last long, because it is a public funded project and according to the client requirement it cannot go under regular repairs or maintenance due to the disturbance to the public Type single pitched roof

Value engineering / management theory and application Cost Studies Secondary Function Inner appearance is important Allowance for installations of other services must be made.

2.2.4 Creative Phase (Phase 4)

Identify the alternative for the element As per the existing design for the project, the roof is clay tile roof and the frame of the roof is wooden frame Frame Timber Steel

Roof material GI Sheets Sandwich Panels (self-supported zinc aluminium coated metal panel with polyurethane rigid foam) Concrete tiles Cement corrugated sheets Concrete slab

Value engineering / management theory and application Cost Studies

2.2.5 Evaluation Phase (Phase 5)

Alternative Material Cost/ (Material + Labor) Total Cost

ROOF AREA = 1,000 GI Sheets Sandwich Panel Concrete Slab Cement corrugated sheets Concrete tiles 8,500 + 3,100 4,500 + 2,100 8,500 + 2,200 7,750 + 1,750 8,200 + 1,700 11,600,000.00 6,600,000.00 10,700,000.00 9,500,000.00 9,900,000.00

Functions Alternative Material GI Sheets Sandwich Panel Concrete Slab Cement corrugated sheets Concrete tiles 3 4 3 3 4 3 4 3 3 2 4 3 Durability 2 5 Fire Sound Thermal Weather appearance 3 4

resistant insulation insulation resistant 4 5 1 4 1 5 2 5

Highest priority starts from 5 and the lowest is 1

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Value engineering / management theory and application Cost Studies

2.2.6 Reporting and Recommendation phase (Phase 6)

Overall Cost Comparison for the Roof Structure

Item No A B C D E F

Description Roof Structure/Roof Covering GI Sheets Sandwich Panels Concrete Slab Cement corrugated sheets Concrete tiles

Cost-Initial / BOQ 10,021,313.50 -

Cost-Estimated 11,600,000.00 6,600,000.00 10,700,000.00 9,500,000.00 9,900,000.00

Cost- Reduction -15.75% 34.14% -6.77% 5.20% 1.21%

According to the evaluation phase it has identifies that the Sandwich Panels (selfsupported zinc aluminium coated metal panel with polyurethane rigid foam) fulfil most of the requirements of the clients and an economical solution for the existing roof structure. Mainly the Sandwich Panel system is comparatively highly durable and comes with thermal insulation built in. Moreover this product doesnt demand any Ceiling after fixing the roof due to its having the ceiling finishes within itself. Also all the lighting and other related accessories can be fixed when the request is made to produce the desired size of the roof. Even according to the estimation this will reduce the BOQ cost for the Roof structure from 35%.

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Value engineering / management theory and application Cost Studies

Reference
Notes and details provided at the workshop by the lecturer Drummond Graham, John Kelly, Steven Male, (2004). Value Management of Construction Projects. London: Wiley-Blackwell. p384. Anonymous. (2009). Value management and engineering. Available: http://www.facilities.ac.uk/j/cpd/61-project-management/106-valuemanagement-and-engineering. Last accessed 04th Feb 2012. JoannC. (2007). Value Management in Construction. Available:

http://www.streetdirectory.com/travel_guide/21647/corporate_matters/value_m anagement_in_construction.html. Last accessed 04th Feb 2012. Anonymous. (2012). Insulated Roof System. Available:

http://www.metecno.com/Product/roof/Traditional/Glamet/glamet_g5.html. Last accessed 05th Mar 2012.

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