Report to the General Assembly (Published)

Document Title

Use of Value Engineering

Author

Secretary of Administration

Enabling Authority

HJR 687 (1995)

Executive Summary

House Joint Resolution No. 687, agreed to by the 1995 Session of the General Assembly, requested the Secretary of Administration (a) study the cost savings that have resulted from the use of value engineering (VE in capital projects costing more than five million dollars and (b) ascertain to what extent, if any, such value engineering may benefit localities.

Study Approach

This study as assigned to the Bureau of Capital Outlay Management (BCOM) of the Department of General Services.

The BCOM developed the policy and procedures for implementing the use of value engineering on state capital projects and receives reports of agency value engineering study recommendations and agency action thereon. The BCOM also provides limited value engineering and cost analysis of capital project proposals as part of the process of developing the administration's capital budget submission.

The study examined recommendations developed by value engineering teams retained to review agency projects and cost data and other information submitted by the agencies related to acquiring the VE studies

II. Summary of findings

Value engineering of state capital outlay projects with an estimated construction cost of more than $5,000,000 began in July 1994. State procedures require that the VE study be conducted at the preliminary design state. The project design is approximately 35 % complete at preliminary design state.

As of October 15, 1995, fourteen (14) of eighteen (18) capital projects subject to VE have been studied. Studies were waived for three correctional facility projects and one site development project. The median estimated construction amount of the projects was approximately $13,300,000. The projects were predominantly college academic and student support facilities. There was one major port facility project.