Value engineering helps
to create a project image
to achieve sustainability
to meet future challenges
to create and implement an effective strategy
Author:
Ortfried FRIEDREICH, DI, MSC, AVS, MASCE
Senior Consultant, AXIS Ingenieurleistungen ZT GmbH
Rainergasse 4, 1040 Vienna, Austria
In the course of the development of real estate projects, the development or revitalisation of major construction projects and complex infrastructure projects, the planning of neighbourhoods and the restoration
of industrial wastelands, a change of paradigm is necessary for the definition of the basic-functions.
The achievement of a suitable project image, the implementation of sustainability aspects regarding design and planning, implementation and operation, the development of innovative solutions for mastering
future challenges in the building industry and the development and implementation of efficient strategies
for individual projects, which are usually construction projects, can be worked up with a VE process as an
excellent basis for decision-making.
The sensible use of the method of value engineering, especially the respective adaptations in the information phase, the finding of functions, their breakdown, categorisation and classification and a stakeholderoriented, dynamic FAST-chart with special consideration of the time component make a considerable
contribution to the improvement of the projects.
Contrary to most technical FAST-charts where design objectives, requirements and specifications are not
scrutinised based on the why-how logic, these should be discussed in more detail in the scope of construction projects.
As a rule, no all-time and one-time functions can be given either.
And this is true in particular because modules, functional groups and components that dominate in buildings have different life-spans and life cycles and, in terms of the life cycles of value-judgments of different
stakeholders, are subject to constant change. The half-life period of the value-judgments and expectations in this regard is partly in contrast to the value-change and the behaviour-cycle of the stakeholders.
In former times, a high-order function was formulated after the project task and the primary purpose of the
construction project had been defined, and the project was primarily focussed on this function.
Ortfried Friedreich
Today the investors have to answer the following questions up-front:
What image is the planned construction project to convey?
What future topics will be addressed by the project and what creative solutions should be found
for them during implementation?
For what general and special aspects of sustainability should the project be designed, planned
and built and how should it be used?
What strategy is to be developed, pursued, implemented and also presented in a measurable
way with the project?
In the course of the information phase, all potential stakeholders should be identified and their constraints,
requirements, needs and wishes should be explored, and in addition to that, the following questions
should be answered:
What objectives should be reached?
What characteristics should the project have today, in the short term, in the medium term and in
the long term?
In the course of value optimisation, the following question arises then in connection with the conceived
use: What qualities should the project achieve in addition to the former primary-functions?
In architecture, the following principle used to apply
“Form follows function”
In the past two decades, this was replaced by the principle
“Form follows marketing”
(This may be useful for genuine marketing tasks of an investor, which are usually only valid for a short
period of time, but in most cases it is not useful).
Today, the following principle should apply
“Form follows primary functions”
create a project image
achieve sustainability
meet future challenges
create and implement effective strategy
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As far as the development of construction projects is concerned, it is not the value-analysis that decides,
but the architecture of values.
As it is the case for the formulation of functions, a positive activity (active verb) in connection with a
measurable noun is important. For this reason, the conceptions of qualities, the generating of values are
more important than the certification of characteristics.
An extension of the 4 basic elements in project management is expedient.
Value optimisation from the point of view of project managers differentiates (see Robert B. Stewart) between:
performance - project scope
time
cost
risk
In the future, a composition of values from the project leaders’ point of view will have to be realised in
construction projects. The basic elements of successful leadership, which are now 4 as well, are:
project image
sustainability
future focus
effective strategy
Yesterday and today, the following formula applied and applies
Value =
=
Taking into account the fact that all buildings are three-dimensional, the fourth dimension, namely the
time of consideration, will have to be considered in the future.
Value t =
However, the consideration of individual aspects could be described in more detail based on the terms of
sustainability value (social, ecological, economical) and future value.
In the above-mentioned development processes for construction projects, it is useful to ask new questions in the course of the information phase concerning future options for use and lifestyle habits to be
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expected in the future and the changes they undergo as a basis for the subsequent creativity phase and
its improvement.
After the formulation of the respective functions, their classification and categorisation according to the
usual procedure in the course of the job plan, the duration of the functions and the change of their characteristics have to be scrutinised in addition to the evaluation of the functions and their relationships with
costs, time and risk. What functions deliver what future values for the customers, the stakeholders and for
society?
There is no low and no high performance. The performance derived value is primarily expressed by the
degree to which a desired image is achieved, future challenges are mastered, and by the sustainability of
all activities and the implementation of the defined strategy.
According to the customer-oriented FAST chart, the triangle of performance, costs, acceptance (plus risk)
at the time of planning and implementation used to be decisive. With a view to the 4 leadership basic
elements and the risk, the time component will be decisive for the consideration in the future. The leadership aspects change over the years.
Above all things, it is the constraints, requirements, needs and wishes that change over the years. The
required flexibility of construction projects has a major influence on its value optimisation.
A dynamic leadership construction-project FAST-chart has been developed considering the aspects of the
technical FAST-chart, the conception of the customer-oriented FAST-charts1, which are rigid charts at the
time of preparation for the observer. It has been developed based on several stakeholder-oriented FASTcharts which are developed for a construction project from the point of view of investors, users, and society.
The perspective of the project leaders does not replace the one of the project managers. Project managers build upon the results of the leadership FAST chart for construction projects.
In the course of the presentation, descriptions and developments for interesting construction projects will
be explained and demonstrated by way of example. On the one hand, explaining how the stakeholder
aspects are considered, and on the other hand, how the future aspects can be evaluated (with measurable results) using a balanced scorecard.
An effective strategy for a construction project is not to be confused with the implementation strategy of
the results of a value-engineering process.
1
Refer to “Function Approach to Transportation Projects”, Muthiah Kasi)
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The adaptation of the information phase and the function analysis suggested by us and already implemented as such several times, and the categorisation and evaluation in this regard foster in particular the
brainstorming phase, the phase in which solutions are developed, and consequently improves decisionmaking for the investors.
The deliberations above could make a contribution towards architects’ assisting their clients during the
composition of their construction tasks based on the described value architecture.
Vienna, 2013-11-29
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