ABSTRACT

Market globalization has in effect led to increased competition, not just between companies , but also on a macro level between individual countries , keeping cost low with traditional cost management has been a commonly applied measure to improve competitiveness.

Value Engineering (VE) is a practice whose goal is, always, to achieve value for money. VE found its first applications in U.S. manufacturing at the end of World War II. Its introduction to construction in the early 1960s was fueled by the U.S. military and expanded throughout the U.S. government. Subsequently, its use has spread globally.

The report goes beyond merely describing the theory of VE in order to explain how the methodology can be productively used in practice . it is hoped that the practice advice contained in its chapter will assist engineers , who are involved with establishing VE activities within their organization , it also aimed at assisting all those who may become involved with VE to participate more productivity by giving them greater appreciation of the basics of VE , and how it relates to other construction activities.

By applying VE job plan on case study (1) a factory for ready made garments in New Borg El Arab Industrial Zone, VE team saved a 8.9% of total cost of the project.

And saving 4.15% of total cost by applying it on the skeleton and bricks only for case of study (2) , it is for a residential, commercial building (Cleopatra Plaza) located at Al Azarita – Alexandria.

Selecting the project at the appropriate stage of development (the timing of the study) is very important to the success of the VE study. Value can be added by performing a VE study at any time during project development