Value engineering is now relatively common within the construction industry but is often misused as simply a cost cutting exercise. Cost cutting without proper analysis is likely to lessen the value of a project and not provide the client and stakeholders with what they want. When applied correctly, in a systematic approach, it optimises the whole life cost without detrimentally affecting the quality performance or reliability of a project. There are also wider benefits to value engineering which include;

• Clarification of the brief

• Multi-disciplinary teamworking

• Identification of risks

• Identification of alternative designs and solutions

Value engineering can be used at all stages of a project from inception, where client and stakeholders needs are identified, through detailed design and reviews of possible alternatives to the construction phase where site issues are resolved.

The importance of value engineering is recognised by the majority of clients, contractors and design team members. HM Treasury Central Unit''s Procurement Guidance No. 54 states ''The philosophy and techniques of value management provide a structured approach to the examination and development of a project which will increase the likelihood of achieving these requirements at the optimum value for money." In order to gain the greatest benefit from value engineering, however, the process should be structured and auditable.

Usually value engineering is undertaken through workshops that can be internally or externally facilitated. The appointment of the facilitator requires careful consideration in order to achieve the desired outcome. Internal facilitators will have a familiarity with the project but may not have as many ideas as an external ''new set of eyes''. Often the structure of the workshop and the choice of facilitator will be dependent on the value of a project and its level of risk to the client. In either case it is imperative that the key requirements of the client and stakeholders are outlined and that ideas are generated in a ''criticism-free'' environment.

The correct use of value engineering will avoid the potential risks that many in the construction industry will recognise;

• inadequate information from, or participation by, the client and stakeholders

• inadequate support from senior management

• exercise undertaken too late in the design process

• resistance to change and personal conflicts

Correctly used, value engineering can improve the final product and enhance the working of the project team. Often the aim of the exercise is to reduce cost, and this can be successfully achieved without compromising quality or programme.

Construct Wales can offer facilitators to assist in successful value engineering exercises to provide best value for all parties concerned. The programme can help realise the benefits of value engineering whilst avoiding the risks that are all too common in the industry at present.