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How to Successfully Use Value Engineering on Capital Projects

Instructor

Don H. Stafford, P.E., CVS, CTM, M.ASCE
Mr. Stafford is an internationally-recognized expert in value engineering (VE),having conducted more than 250 VE studies across America over the past 25 years. As a civil engineering graduate of Georgia Tech, he is a registered engineer in four states, and is a Life-Certified Value Specialist, the highest level of VE certification. He is President and co-founder of Robinson, Stafford & Rude, Inc., (RSR) a VE consulting firm. He is a former national board member of SAVE International, the international value engineering society. Mr. Stafford’s VE studies have saved his clients well over a billion dollars. Prior to forming RSR he served as the Planning Manager for the $1.5 billion West Point secondary treatment wastewater program for the Seattle, WA metro area. From 1978 to 1982 he served as City Program Manager for Atlanta’s $200 million, 14- project Three Rivers Water Quality Management Program. He has been teaching VE for more than 20 years, including serving as a guest lecturer at the University of Washington. He has authored more than a dozen papers on VE and has conducted VE studies for more than 60 city, county, state, provincial and federal agencies, in the U.S. and Canada.

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Course Description

Increasing needs for capital projects are placing a greater demand on available funding resources today. We are all finding it necessary to do more with less. Value Engineering (VE) has proven to be a very valuable tool in stretching both capital and operation and maintenance dollars to achieve the required goals for less cost, both in the public and private sector. VE usually results in improvements in facility performance, even at these lesser costs.

Public agencies at all levels of government in the U.S. and Canada, as well as in other countries around the world, are using VE for their larger projects, from the federal government level to the local community and special district level. Likewise, the private sector is also using the process to make their operations more profitable.

Net savings from a successful VE process go straight to the bottom line. Project owners are saving from 5 to 50 percent of individual project capital costs, and getting similar savings in operating and maintenance costs over the project life. VE is applicable to any type of project, from water, wastewater and drainage piping through road, highway and freeway projects, to complex, mechanically intensive facilities such as power plants and wastewater treatment facilities.

This seminar is intended to teach project managers, program managers and design project managers how to use VE as one of the tools to better manage costs and performance of the projects for which you as a project or program manager are responsible.

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    Seminar Benefits

    Agency and owner project managers will learn how to decide which projects will most benefit from value engineering and how to best apply the process to those projects. Design project managers will learn how value engineering can/will be applied to their projects, how to prepare,what will be expected of them, and how to maximize benefits to the project and to their client from the value engineering experience.

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    Who should attend

    Public agency project managers, program managers, public works directors and agency chief engineers with responsibility for any type of capital project. Design firm project managers who expect to have value engineering applied to their projects will also benefit from this seminar. The seminar will be of greatest benefit to those who routinely manage projects with an individual construction cost exceeding $2 million, or programs in which a significant number of the projects are expected to be of similar or larger size.

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      Learning Objectives

      Seminar participants will learn:

      • The nature, origin and history of value engineering
      • Current legislation regarding value engineering
      • The benefits that should be expected from value engineering
      • The details of how and why value engineering works, firsthand
      • A hiring and selection process for value engineering expertise
      • How to scope a value engineering effort and how to select the VE team
      • How to apply VE to your projects as a project manager
      • Key factors for success and potholes to avoid
      • The impacts of VE on the project designer and how to successfully address them
      • How to capture the maximum benefit from VE recommendations

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      Summary Outline

      Day One

      • Definition of Value Engineering
      • Benefits of Value Engineering
      • Why Value Engineering Works
      • Origin of Value Engineering
      • History of Value Engineering
      • Current Value Engineering Requirements in Public Agencies
      • Explanation of the Value Engineering Process
        • Pre-workshop Activities
        • Workshop Activities
        • Post-workshop Activities
      • Explanation and Practice of Detailed Steps in Value Engineering Workshop (includes conducting a mini-Value Engineering study of a sample project)
        • Information Phase
        • Function Analysis Phase
        • Creative Phase
        • Evaluation Phase

      Day Two

      • Explanation and Practice of Detailed Steps in Value Engineering Workshop (continued)
        • Development Phase
        • Presentation Phase
      • Types of Projects Benefiting From Value Engineering
      • Key Factors for Successful Value Engineering
      • How to Successfully Procure Value Engineering Services
      • Explanation of Competence Certification for Value Engineering Practitioners
      • How to Determine Value Engineering Technical Team Size
      • How to Assess the Qualifications of Value Engineering Team Members
      • Sources for Value Engineering Team Members
      • Team Member Selection Exercise
      • Determination of the Number of Value Engineering studies
      • Timing of Value Engineering Studies
      • Determination of the Value Engineering Workshop Duration
      • Developing Terms of Reference for Value Engineering Services
      • Timing of Procurement of Value Engineering Services
      • Elements Needed in Designer Scope to Support Value Engineering Work
      • Selection Criteria for Value Engineering Services
      • Questions and Answers
      • Presentation of Certificates

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