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Application
              of
Value Engineering Methodology
              to
 Roads and Highway Projects

                 By Muhammad Ajmal Khan
                 Senior Engineer
                 Roads Planning and Design Section
                 Roads Department

                                         January 2011
Value Engineering / Value Analysis / Value Methodology

VE / VA / VM is the systematic method to improve the “value” of a product or service
by using an examination of function.
                                    V (value) = F (function) / C (cost)
VE uses a combination of creative and analytical techniques to identify alternative ways to achieve
objectives. The use of Function Analysis differentiates VE from other problem solving approaches.
 VE never compromises on basic function but reduces the cost or increases the function at same
cost. “Basic Functions” mean the functions that users require for products or services.

For any Civil Engineering project:
              VE is the systematic application of recognized techniques by a multi-disciplinary team for
generating alternatives through the use of creative thinking that accomplishes the original purpose (basic
function) of the project at the lowest life-cycle cost without sacrificing
                            safety,
                            necessary quality
                            and environmental attributes

Application of Value Engineering mainly:
                                                - Solves problems
                                                - Decreases costs
                                                - Improves value, quality & performance
                                                - Uses resources more effectively
                                                - reduces the time of project completion
Value Engineering Definition:


Value Engineering is not:

A Design Review
        It is not planned to correct omissions in the design, nor to
        review drawings, BOQ, Estimates etc. made by designers.

 A Cost Cutting Process
        It does not cut cost by sacrificing needed quality, reliability or
        performance.

Routinely Done by all Design Engineers
        It is not a part of the normal design process, but a formal
        cost and function analysis.
Value Engineering Definition:



What Value Engineering Can Do?
                Focus on the “big picture”
                  Improve decision making
                  Develop realistic budgets
                  Ensure required functions / project scope
                  Enhance understanding of total project
                  Challenge paradigms
                   Accelerate the design process
                   Encourage cross-discipline communication
                   Identify and remove unnecessary costs
Value Engineering Process
    How Does the Value Methodology Work?
    The value methodology works through a VE / VA / VM study that brings together a multidisciplinary team of
    people who own the problem and have the expertise to identify and solve it. A VM study team works under
    the direction of a facilitator who follows an established set of procedures - the VM job plan - to review the
    project, making sure the team understands customer requirements and develops a cost-effective solution.
                                                                                            -- SAVE International

                      VE Process →           Team Leader + Multidisciplinary Team + VE Job Plan

                                                         VM / VE / VA Job Plan

                        Function                                                                                                  Implementation
 Information                                Creative              Evaluation          Development             Presentation
                        Analysis                                                                                                   & Monitoring
     Phase                                   Phase                   Phase               Phase                   Phase
                         Phase                                                                                                        Phase
Project Initiation,    Project Scope,     Creative                Critical judgment   The VE Team             The team leader
Requirement,           TOR, Policy,       Brainstorming to        of VE application   develops the            develops a
Existing Condition     Design Criteria,   identify other ways     for value           selected alternatives   report and/or
Budget,                Standards,         to perform the          improvement         / proposals with        presentation that
Project Stage          Specifications     project’s function(s)   while delivering    sufficient              documents VE
                                                                  the project’s       documentation to
etc.                   etc.
                                                                  scope/function(s)   allow decision
                                                                  and considering     makers to determine
                                                                  performance         if the alternative
                                                                  requirements and    should be
                                                                  resource limits     implemented
When should a Value Engineering Study should be undertaken?


                                   The cost of making changes to a project depends
                                   on when VE is introduced. Early changes are
                                   naturally practical and cost effective than later
                                   ones, as shown in the diagram below:
                               Savings and Costs of Value Engineering
                                                  Time
         Concept                 Preliminary Design      Final Design           Construction




     Best VE cost-saving
     opportunities occur
       early in project




                   Constructive VE Opportunity                          Destructive Intervention

                           Cost of Project                Saving Opportunity by VE
Value Engineering – Who Manages the Costs




                         Mainly Policy Makers and
                         Designers are responsible for
                         savings in life cycle cost of a project
Value Engineering – through Flexibility in Design

                   Application
                        of
       Value Engineering Methodology
                        to
        Roads and Highway Projects
                        at
     Project Initiation and Design Stages

                                By Muhammad Ajmal Khan
                                Senior Engineer
                                Roads Planning and Design Section
                                Roads Department

                                                        January 2011
Achieving Flexibility in Design
   ―Green Book‖              A Guide for
     (AASHTO)           Achieving Flexibility
                         in Highway Design
                           (AASHTO, 2004)




                    This book bridges Design Standards
                    with ―Flexibility in Highway Design‖
Value Engineering – through Flexibility in Design

       Main Message - No Save without Flexibility

 Designers have flexibility!




                                      Experience counts
Designers have flexibility!

Without flexibility, we cannot go for Value Engineering.
 Now, What is Flexibility in Design?

    It is the use of sound engineering judgment rather than
    strict adherence to design standards and criteria


      It addresses safety, mobility and preserves natural
      and historic resources and community values.


        It provides joint use for motor vehicles, public transit,
        cyclists and pedestrians.


           It is a reasoned, well thought out, justifiable design that
           balances goals, project needs and community/stakeholder
           interests.
Flexibility in Using Design Criteria

    Flexibility decreases as we advance through the design process
Flexibility in Design Elements
Roadway Cross Section - For Local Urban Streets
       as per AASHTO Green Book & Guidelines for Geometric Design of Very Low-Volume Local Roads (ADT≤400)

     Widths: 3.3 m in Residential and 3.6 m in Industrial areas
           Lanes 3.0 m wide are acceptable on low speed facilities Lanes
           2.7 m wide are appropriate on low volume roads in rural and residential areas
     Parking lanes:
            in Residential areas, parallel parking 2.1 m – 2.4 m on one or both sides

     Buffer for parking:
             not required – rarely used in any country, contributes a lot of cost
Flexibility in Design Elements
                     Make urban junctions as compact as possible




       Abu Dhabi Urban Street Design Manual
       Abu Dhabi Urban Planning Council

       AASHTO




Corner Radius: 3m and 4.5m
As per AASHTO Green Book “Guidelines for right-
turning radii into minor side streets in urban areas
usually range from 1.5 to 9 m [5 to 30 ft] and most
are between 3 and 4.5 m”
An Example of flexibility in Design

How many different ways can we design a 4-lane road by
applying Design Standards:
 Lane Width     • 3.00m to 3.65m



  Shoulder      • 0.60m to 3.00m
   width
 Side Walk /    • 1.20m to 3.50m
 Cycle path
                • 0.60m to 12.00m
   Median       • Raised or flush


                • Street Lighting, Landscape, Service
   Others:        Road, Parking Lanes etc.



             Highway designers have choices (not mandates)
             Designers should understand the functional
              basis of design criteria and standards
             AASHTO Green Book is flexible
Cost consuming “Design Elements”:

                                       Wider lane width           •2.7 to 3.3 m is sufficient for local streets

                                       Wider shoulder             •For low volume two lane roads, not required
                                       width
                                       Too wide side walk / •1.8 m is wide enough for two persons to
                                       footpath              walk side by side and 1.20 for one person

                                       Roadside                   •use of curb, barriers, fences etc.
                                       development
                                                                  •as per Green Book minimum 4.5 m but in
                                       Too big corner radii        Dubai it is 15m

                                                                  •constructing more than required parking in
                                       Too much parking            residential areas


                             •This is the most cost consuming
  Extra buffer for parking    element, used in Dubai
  Excessive traffic signs,   •use of excessive traffic signs are also
  markings etc.               dangerous for safety

                             •Passenger cars do not contribute any
 Pavement thickness           load effect on road, else providing higher
                              pavement thickness
Reduce Kerb Return Radius




Corner Radius: 3m and 4.5m
As per AASHTO Green Book “Guidelines for right-
turning radii into minor side streets in urban areas
usually range from 1.5 to 9 m [5 to 30 ft] and most
are between 3 and 4.5 m”
Eliminate Unnecessary Design Elements

Eliminate Buffer for Parking
    Cost consuming, Not required
    Drivers park behind the parked cars and create congestion




                           Ultimately an increase in project cost
Eliminate Unnecessary Design Elements

 Eliminate Unjustified Traffic Signs and advertising signs



 Stop, go, yield, right of way, school ahead, slow
 down and toll ahead can cause confusion to most
 any driver. Too many traffic signs can be
 conflicting and dangerous, and may lead to
 fender benders or more serious crashes, argues
 Duke University psychology professor John
 Staddon in a 2008 Atlantic article "Distracting
 Miss Daisy."



     Ultimately an increase in project cost
Eliminate Unnecessary Design Elements

Eliminate Local Street Landscaping
No international practice for providing Landscaping in Local Streets.
Authorities only make legislation and provide guidance to the residents for
making landscape in front of their houses.




  Ultimately an increase in project cost
Now we analyze VE for R853 – Roads in Al Barsha 1, 2 & 3
Now we analyze VE for R853 – Roads in Al Barsha 1, 2 & 3

By Reducing Local Street Road width 7.0m to 6.6m
We saved AED 6 million,
if we go for 6.0m road width we will save about AED 5 million
Project R853 has 180 T-Junctions
If we use radius 7m, we will save about AED 1.5 million
It will also promote calming measures on all over Al Barsha
1.8 m is wide enough for two persons to walk side by side
Introducing 1.8m Sidewalk in all residential area, we can save about AED 5 million, if we go for 1.2 m
sidewalk, we will save additional AED 5 million.
Asphalt Paving on Sidewalk
We can further reduce the cost by asphalt paving on sidewalk instead of block paving, if authority
approves.
Buffer for Parking
By eliminating buffer for parking, we already saved AED 16 million
Local Street Landscape
By eliminating Local Street Landscape, we already saved AED 14 million
By Cost Cut for R853 – Roads in Al Barsha 1, 2 & 3




        Off Street Parking    AED 10 milliom
        Kerb & Side walks     AED 75 million
        Paving of Sikka       AED 20 million
        Drainage Work         AED 10 million
        Irrigation Works      AED 23 million
Value Engineering – Analyzing Construction Materials :




Saving through Construction Materials
  Analyze High Cost / High Volume Items of a Project.

Remember:

80% of a project’s cost can be found in 20% of the items
                                            Pareto Principle (80-20 rule)
Value Engineering – Analyzing Construction Materials :

High Cost / High Volume Items of any Road Project:

Earthworks (Two items generates 80% Cost)
       1. Excavation
       2. Filling of Embankments by imported material
Value Engineering – Analyzing Construction Materials :

High Cost / High Volume Items of any Road Project:




                          ROADS AND PAVINGS
                          (7 items generates 90% Cost)

                                  Granular sub base
                                  Wet mix macadam road base
                                  AC Wearing course
                                  AC Base Course
                                  Block paving (60mm & 80mm)
                                  Up stand kerb / heel kerb
                                  Concrete barrier
Value Engineering – Analyzing Construction Materials :

High Cost / High Volume Items of any Road Project:



BRIDGE WORKS
      (6 items generates 80% Cost)

      Concrete all Class
      Bridge Deck
      Reinforcement - steel bars
      Main web cables – Pre-stressed Concrete
      Fences - Reinforced Concrete Barrier
Value Engineering – Analyzing Construction Materials :
High Cost / High Volume Items of any Road Project:




    Structural Metalwork (2 items generate 80% Costs)
           Overhead Gantries (including piling, foundation, steel works etc.)
           Overhead Traffic Signals
Value Engineering – Pavement Design

Provide Well Performing,
Durable, Safe and Cost
Effective Pavements




  Primary Factors                 Secondary Factors
   Traffic                       Performance of similar pavement materials
   Soil Characteristics          Adjacent existing pavements
   Weather                       Availability of local materials/contractors
   Construction considerations   Traffic safety
   Recycling                     Experimental features
   Cost comparison               Stimulation of competition
       Initial                   RTA preference
       Life Cycle
Value Engineering – Pavement Design
Use of Alternative pavement material and Recycled Material

    Aggregate Base Course                Wet Mix Macadam
    Structure No. 0.14                   Structure No. 0.14
    Less Cost (about 50% of WMM)         High Cost
    Construction methodology -Time       Construction methodology –Quicker
    consuming                            and faster
    Product and contractor available     Product and contractor available


Recycling —RTA to ―Go Green‖

     Promote the Use of Recycled Materials in Roads Construction:
     Main recycled materials are:
         - Reclaimed road pavements
         - Recycled concrete materials
          - Shredded Tires
          - Glass etc.
Value Engineering – Unnecessary Cost
Why do Projects have ―Unnecessary‖ Costs?
      Habitual thinking: rigid application of standards, customs, and tradition
       without consideration of changing function, technology and value.
      Over specifying – whole or any specific project component.
      Lack of information, usually caused by a shortage of time – i.e.    survey
       data, traffic data, parking requirements etc.
      Too many decisions - too many alternatives designs.
      Wrong beliefs, insensitivity to public needs or unfortunate experience
       with past projects.
      Reluctance to seek advice, failure to admit ignorance of certain
       specialized aspects of project development.
      Negative attitudes, failure to recognize creativity or innovativeness.
      Poor human relations, lack of good communication, misunderstanding,
       jealousy and normal friction between people are usually source of
       unnecessary cost.
Value Engineering – Unnecessary Cost

Be Careful ! ! !

CONSULTANTS are mainly responsible for increasing project cost:


 WHY … … ?

 Because of our payment procedure.

 We pay on % basis of Established Tender Sum (ETS)

 The higher ETS, the greater is the payment for CONSULTANT.

 Therefore, consultants are increasing the cost of a project by smartly
 exaggerating design elements, adding unnecessary materials, traffic
 signs etc.

                              Keep a tight check on Consultants….
Recommendation: Value Engineering Team


 RTA have to make a VE team consisting of experts having VE
 expertise in respective field.
 We start with a small group of experts in the required disciplines:
        Roads Planning & Design,
        Traffic engineering
        Traffic Safety,
        Bridge and Structure,
        PMS
        Landscape
        Street lighting
        Environmental,
        Construction ,
        Maintenance etc.
Recommendation – Mandatory Value Engineering
Value Engineering was first introduce in 1947 in USA and widely used by USA Department of
Defence since 1959. SAVE (Society of American Value Engineers) was established in 1959, since
then most of the US Departments are practicing Value Engineering.

       RTA has to make it mandatory for each department “to carry out
        Value Engineering (VE) analysis for each project with an estimated
        total cost of AED-------- million or more.”

       In this context, a project is defined as a portion of the highway,
        metro, railway, water way etc. that RTA proposes to construct,
        reconstruct, or improve.

       A project may consist of several contracts or phases over several
        years.

       Note, if total phases of the project is estimated to cost over AED------
        -- million, then a VE study or analysis is required on either (1) the
        whole project, (2) a segment of the project or (3) on an element of
        the project.
Recommendation – Mandatory Value Engineering
Value Engineering was first introduce in 1947 in USA and widely used by USA Department of
Defence since 1959. SAVE (Society of American Value Engineers) was established in 1959, since
then most of the US Departments are practicing Value Engineering.

       RTA has to make it mandatory for each department “to carry out
        Value Engineering (VE) analysis for each project with an estimated
        total cost of AED-------- million or more.”

       In this context, a project is defined as a portion of the
        highway, metro, railway, water way etc. that RTA proposes to
        construct, reconstruct, or improve.

       A project may consist of several contracts or phases over several
        years.

       Note, if total phases of the project is estimated to cost over AED------
        -- million, then a VE study or analysis is required on either (1) the
        whole project, (2) a segment of the project or (3) on an element of
        the project.
MORE CREDIT FOR OUR
   DEPARTMENT!
THANK YOU


       By Muhammad Ajmal Khan
       Senior Engineer
       Roads Planning and Design Section
       Roads Department

                               January 2011

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Value Engineering for Roads & Highways Project

  • 1. Application of Value Engineering Methodology to Roads and Highway Projects By Muhammad Ajmal Khan Senior Engineer Roads Planning and Design Section Roads Department January 2011
  • 2. Value Engineering / Value Analysis / Value Methodology VE / VA / VM is the systematic method to improve the “value” of a product or service by using an examination of function. V (value) = F (function) / C (cost) VE uses a combination of creative and analytical techniques to identify alternative ways to achieve objectives. The use of Function Analysis differentiates VE from other problem solving approaches. VE never compromises on basic function but reduces the cost or increases the function at same cost. “Basic Functions” mean the functions that users require for products or services. For any Civil Engineering project: VE is the systematic application of recognized techniques by a multi-disciplinary team for generating alternatives through the use of creative thinking that accomplishes the original purpose (basic function) of the project at the lowest life-cycle cost without sacrificing  safety,  necessary quality  and environmental attributes Application of Value Engineering mainly: - Solves problems - Decreases costs - Improves value, quality & performance - Uses resources more effectively - reduces the time of project completion
  • 3. Value Engineering Definition: Value Engineering is not: A Design Review It is not planned to correct omissions in the design, nor to review drawings, BOQ, Estimates etc. made by designers.  A Cost Cutting Process It does not cut cost by sacrificing needed quality, reliability or performance. Routinely Done by all Design Engineers It is not a part of the normal design process, but a formal cost and function analysis.
  • 4. Value Engineering Definition: What Value Engineering Can Do?  Focus on the “big picture”  Improve decision making  Develop realistic budgets  Ensure required functions / project scope  Enhance understanding of total project  Challenge paradigms  Accelerate the design process  Encourage cross-discipline communication  Identify and remove unnecessary costs
  • 5. Value Engineering Process How Does the Value Methodology Work? The value methodology works through a VE / VA / VM study that brings together a multidisciplinary team of people who own the problem and have the expertise to identify and solve it. A VM study team works under the direction of a facilitator who follows an established set of procedures - the VM job plan - to review the project, making sure the team understands customer requirements and develops a cost-effective solution. -- SAVE International VE Process → Team Leader + Multidisciplinary Team + VE Job Plan VM / VE / VA Job Plan Function Implementation Information Creative Evaluation Development Presentation Analysis & Monitoring Phase Phase Phase Phase Phase Phase Phase Project Initiation, Project Scope, Creative Critical judgment The VE Team The team leader Requirement, TOR, Policy, Brainstorming to of VE application develops the develops a Existing Condition Design Criteria, identify other ways for value selected alternatives report and/or Budget, Standards, to perform the improvement / proposals with presentation that Project Stage Specifications project’s function(s) while delivering sufficient documents VE the project’s documentation to etc. etc. scope/function(s) allow decision and considering makers to determine performance if the alternative requirements and should be resource limits implemented
  • 6. When should a Value Engineering Study should be undertaken? The cost of making changes to a project depends on when VE is introduced. Early changes are naturally practical and cost effective than later ones, as shown in the diagram below: Savings and Costs of Value Engineering Time Concept Preliminary Design Final Design Construction Best VE cost-saving opportunities occur early in project Constructive VE Opportunity Destructive Intervention Cost of Project Saving Opportunity by VE
  • 7. Value Engineering – Who Manages the Costs Mainly Policy Makers and Designers are responsible for savings in life cycle cost of a project
  • 8. Value Engineering – through Flexibility in Design Application of Value Engineering Methodology to Roads and Highway Projects at Project Initiation and Design Stages By Muhammad Ajmal Khan Senior Engineer Roads Planning and Design Section Roads Department January 2011
  • 9. Achieving Flexibility in Design ―Green Book‖ A Guide for (AASHTO) Achieving Flexibility in Highway Design (AASHTO, 2004) This book bridges Design Standards with ―Flexibility in Highway Design‖
  • 10. Value Engineering – through Flexibility in Design Main Message - No Save without Flexibility Designers have flexibility! Experience counts
  • 11. Designers have flexibility! Without flexibility, we cannot go for Value Engineering. Now, What is Flexibility in Design? It is the use of sound engineering judgment rather than strict adherence to design standards and criteria It addresses safety, mobility and preserves natural and historic resources and community values. It provides joint use for motor vehicles, public transit, cyclists and pedestrians. It is a reasoned, well thought out, justifiable design that balances goals, project needs and community/stakeholder interests.
  • 12. Flexibility in Using Design Criteria Flexibility decreases as we advance through the design process
  • 13. Flexibility in Design Elements Roadway Cross Section - For Local Urban Streets as per AASHTO Green Book & Guidelines for Geometric Design of Very Low-Volume Local Roads (ADT≤400) Widths: 3.3 m in Residential and 3.6 m in Industrial areas Lanes 3.0 m wide are acceptable on low speed facilities Lanes 2.7 m wide are appropriate on low volume roads in rural and residential areas Parking lanes: in Residential areas, parallel parking 2.1 m – 2.4 m on one or both sides Buffer for parking: not required – rarely used in any country, contributes a lot of cost
  • 14. Flexibility in Design Elements Make urban junctions as compact as possible Abu Dhabi Urban Street Design Manual Abu Dhabi Urban Planning Council AASHTO Corner Radius: 3m and 4.5m As per AASHTO Green Book “Guidelines for right- turning radii into minor side streets in urban areas usually range from 1.5 to 9 m [5 to 30 ft] and most are between 3 and 4.5 m”
  • 15. An Example of flexibility in Design How many different ways can we design a 4-lane road by applying Design Standards: Lane Width • 3.00m to 3.65m Shoulder • 0.60m to 3.00m width Side Walk / • 1.20m to 3.50m Cycle path • 0.60m to 12.00m Median • Raised or flush • Street Lighting, Landscape, Service Others: Road, Parking Lanes etc. Highway designers have choices (not mandates) Designers should understand the functional basis of design criteria and standards AASHTO Green Book is flexible
  • 16. Cost consuming “Design Elements”: Wider lane width •2.7 to 3.3 m is sufficient for local streets Wider shoulder •For low volume two lane roads, not required width Too wide side walk / •1.8 m is wide enough for two persons to footpath walk side by side and 1.20 for one person Roadside •use of curb, barriers, fences etc. development •as per Green Book minimum 4.5 m but in Too big corner radii Dubai it is 15m •constructing more than required parking in Too much parking residential areas •This is the most cost consuming Extra buffer for parking element, used in Dubai Excessive traffic signs, •use of excessive traffic signs are also markings etc. dangerous for safety •Passenger cars do not contribute any Pavement thickness load effect on road, else providing higher pavement thickness
  • 17. Reduce Kerb Return Radius Corner Radius: 3m and 4.5m As per AASHTO Green Book “Guidelines for right- turning radii into minor side streets in urban areas usually range from 1.5 to 9 m [5 to 30 ft] and most are between 3 and 4.5 m”
  • 18. Eliminate Unnecessary Design Elements Eliminate Buffer for Parking Cost consuming, Not required Drivers park behind the parked cars and create congestion Ultimately an increase in project cost
  • 19. Eliminate Unnecessary Design Elements Eliminate Unjustified Traffic Signs and advertising signs Stop, go, yield, right of way, school ahead, slow down and toll ahead can cause confusion to most any driver. Too many traffic signs can be conflicting and dangerous, and may lead to fender benders or more serious crashes, argues Duke University psychology professor John Staddon in a 2008 Atlantic article "Distracting Miss Daisy." Ultimately an increase in project cost
  • 20. Eliminate Unnecessary Design Elements Eliminate Local Street Landscaping No international practice for providing Landscaping in Local Streets. Authorities only make legislation and provide guidance to the residents for making landscape in front of their houses. Ultimately an increase in project cost
  • 21. Now we analyze VE for R853 – Roads in Al Barsha 1, 2 & 3
  • 22. Now we analyze VE for R853 – Roads in Al Barsha 1, 2 & 3 By Reducing Local Street Road width 7.0m to 6.6m We saved AED 6 million, if we go for 6.0m road width we will save about AED 5 million Project R853 has 180 T-Junctions If we use radius 7m, we will save about AED 1.5 million It will also promote calming measures on all over Al Barsha 1.8 m is wide enough for two persons to walk side by side Introducing 1.8m Sidewalk in all residential area, we can save about AED 5 million, if we go for 1.2 m sidewalk, we will save additional AED 5 million. Asphalt Paving on Sidewalk We can further reduce the cost by asphalt paving on sidewalk instead of block paving, if authority approves. Buffer for Parking By eliminating buffer for parking, we already saved AED 16 million Local Street Landscape By eliminating Local Street Landscape, we already saved AED 14 million
  • 23. By Cost Cut for R853 – Roads in Al Barsha 1, 2 & 3 Off Street Parking AED 10 milliom Kerb & Side walks AED 75 million Paving of Sikka AED 20 million Drainage Work AED 10 million Irrigation Works AED 23 million
  • 24. Value Engineering – Analyzing Construction Materials : Saving through Construction Materials Analyze High Cost / High Volume Items of a Project. Remember: 80% of a project’s cost can be found in 20% of the items Pareto Principle (80-20 rule)
  • 25. Value Engineering – Analyzing Construction Materials : High Cost / High Volume Items of any Road Project: Earthworks (Two items generates 80% Cost) 1. Excavation 2. Filling of Embankments by imported material
  • 26. Value Engineering – Analyzing Construction Materials : High Cost / High Volume Items of any Road Project: ROADS AND PAVINGS (7 items generates 90% Cost) Granular sub base Wet mix macadam road base AC Wearing course AC Base Course Block paving (60mm & 80mm) Up stand kerb / heel kerb Concrete barrier
  • 27. Value Engineering – Analyzing Construction Materials : High Cost / High Volume Items of any Road Project: BRIDGE WORKS (6 items generates 80% Cost) Concrete all Class Bridge Deck Reinforcement - steel bars Main web cables – Pre-stressed Concrete Fences - Reinforced Concrete Barrier
  • 28. Value Engineering – Analyzing Construction Materials : High Cost / High Volume Items of any Road Project: Structural Metalwork (2 items generate 80% Costs) Overhead Gantries (including piling, foundation, steel works etc.) Overhead Traffic Signals
  • 29. Value Engineering – Pavement Design Provide Well Performing, Durable, Safe and Cost Effective Pavements Primary Factors Secondary Factors  Traffic Performance of similar pavement materials  Soil Characteristics Adjacent existing pavements  Weather Availability of local materials/contractors  Construction considerations Traffic safety  Recycling Experimental features  Cost comparison Stimulation of competition Initial RTA preference Life Cycle
  • 30. Value Engineering – Pavement Design Use of Alternative pavement material and Recycled Material Aggregate Base Course Wet Mix Macadam Structure No. 0.14 Structure No. 0.14 Less Cost (about 50% of WMM) High Cost Construction methodology -Time Construction methodology –Quicker consuming and faster Product and contractor available Product and contractor available Recycling —RTA to ―Go Green‖ Promote the Use of Recycled Materials in Roads Construction: Main recycled materials are: - Reclaimed road pavements - Recycled concrete materials - Shredded Tires - Glass etc.
  • 31. Value Engineering – Unnecessary Cost Why do Projects have ―Unnecessary‖ Costs?  Habitual thinking: rigid application of standards, customs, and tradition without consideration of changing function, technology and value.  Over specifying – whole or any specific project component.  Lack of information, usually caused by a shortage of time – i.e. survey data, traffic data, parking requirements etc.  Too many decisions - too many alternatives designs.  Wrong beliefs, insensitivity to public needs or unfortunate experience with past projects.  Reluctance to seek advice, failure to admit ignorance of certain specialized aspects of project development.  Negative attitudes, failure to recognize creativity or innovativeness.  Poor human relations, lack of good communication, misunderstanding, jealousy and normal friction between people are usually source of unnecessary cost.
  • 32. Value Engineering – Unnecessary Cost Be Careful ! ! ! CONSULTANTS are mainly responsible for increasing project cost: WHY … … ? Because of our payment procedure. We pay on % basis of Established Tender Sum (ETS) The higher ETS, the greater is the payment for CONSULTANT. Therefore, consultants are increasing the cost of a project by smartly exaggerating design elements, adding unnecessary materials, traffic signs etc. Keep a tight check on Consultants….
  • 33. Recommendation: Value Engineering Team RTA have to make a VE team consisting of experts having VE expertise in respective field. We start with a small group of experts in the required disciplines:  Roads Planning & Design,  Traffic engineering  Traffic Safety,  Bridge and Structure,  PMS  Landscape  Street lighting  Environmental,  Construction ,  Maintenance etc.
  • 34. Recommendation – Mandatory Value Engineering Value Engineering was first introduce in 1947 in USA and widely used by USA Department of Defence since 1959. SAVE (Society of American Value Engineers) was established in 1959, since then most of the US Departments are practicing Value Engineering.  RTA has to make it mandatory for each department “to carry out Value Engineering (VE) analysis for each project with an estimated total cost of AED-------- million or more.”  In this context, a project is defined as a portion of the highway, metro, railway, water way etc. that RTA proposes to construct, reconstruct, or improve.  A project may consist of several contracts or phases over several years.  Note, if total phases of the project is estimated to cost over AED------ -- million, then a VE study or analysis is required on either (1) the whole project, (2) a segment of the project or (3) on an element of the project.
  • 35. Recommendation – Mandatory Value Engineering Value Engineering was first introduce in 1947 in USA and widely used by USA Department of Defence since 1959. SAVE (Society of American Value Engineers) was established in 1959, since then most of the US Departments are practicing Value Engineering.  RTA has to make it mandatory for each department “to carry out Value Engineering (VE) analysis for each project with an estimated total cost of AED-------- million or more.”  In this context, a project is defined as a portion of the highway, metro, railway, water way etc. that RTA proposes to construct, reconstruct, or improve.  A project may consist of several contracts or phases over several years.  Note, if total phases of the project is estimated to cost over AED------ -- million, then a VE study or analysis is required on either (1) the whole project, (2) a segment of the project or (3) on an element of the project.
  • 36. MORE CREDIT FOR OUR DEPARTMENT!
  • 37. THANK YOU By Muhammad Ajmal Khan Senior Engineer Roads Planning and Design Section Roads Department January 2011