engleski

Value Engineering in Construction Projects - a Challenge to Contractor

There are many definitions of value engineering. Essentially, it is a combination of technical and economic methods. Value engineering has been developed as a methodology focusing on continuously increasing the value provided by a project and is widely believed to be an important tool in management of construction projects. In short, value engineering methodology can be defined as a systematic and investigative process that strive for accomplishment of value for money by providing all required functions at the lowest cost consistent with essential levels of quality and performance in a project. This objective cannot be achieved unless there is a clear representation of actual situation of the projects in terms of cost, time and quality which are also causes of concern in value engineering method. This paper examines the application of value engineering methodology to construction projects in various stages of the project life cycle and specifically in the execution stage. There have been numerous researches done regarding the application of value engineering by project managers ; however, not much studies have been done exploring the role which contractors can play in this process. Little attention has been given to the basic question which is how to motivate a contractor to put efforts in terms of time and money in order to provide benefits to the project stakeholders. Having examined a number of references, it was found that FIDIC General Conditions of Contract for Construction and World Bank Request for Bids - Plant provide good examples of incentives for contractors to use value engineering for increasing revenue.

Value Engineering ; Life Cycle Cost ; Job Plan ; FIDIC

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