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Value Engineering Made Mandatory on EPA Projects Over $10,000,000

by Harold Tufty, Editor-Publisher; Value Engineering and Management Digest, Washington, D.C.,


Serial Information: Civil Engineering—ASCE, 1976, Vol. 46, Issue 9, Pg. 101-103


Document Type: Feature article

Abstract:

EPA makes VE mandatory on projects over $10 million. Eleven VE teams in five 40-hour workshops. Isolated changes of $1.2 million on typical $4.1 million project which were acceptable to original designer. Total cost savings of $5.2 million are projected to the owner over the 30-year life of the project using $1,223,000 reduction in initial construction; $48,100 in OMR; and simple 7% interest rate. Typical VE savings were distributed as follows: (1)Buildings - initial = $230,000; annual Operations, Maintenance and Repairs = $6,500; (2)Electrical Distribution - initial = $112,000; annual Operations, Maintenance and Repair = None; (3)Plant Layout - initial = $420,000; annual Operations, Maintenance and repair = None; (4) Underground Structures - initial = $92,000; annual Operations, Maintenance and Repair = additional $2,000; (5)Process Changes - initial = $369,000; annual Operations, Maintenance and Repair = $43,600. Total - initial $1,223,000; OMR - $48,100.

Subject Headings: Rehabilitation | Project management | Maintenance and operation | Value engineering | Underground structures | Environmental Protection Agency | Team building

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