value engineering study case done by: ameer a. al-saleh ( id# 850651) for: dr. sadi assaf summer...

Value Engineering Study Case

• Done By: Ameer A. Al-Saleh ( ID# 850651)

• For: Dr. Sadi Assaf

• Summer 2005

Effective Layout : Cost & Schedule Impact on Residential units

Introduction

• VE Case Study: Effective Residential Layout and Effective Construction Schedule.

• My VE study case could be debatable , yet it is added-value paper.

• Cultural block is barrier to Creativity; this is a block that we impose on our selves due to the society, the culture or group to which we belong. “Our way is right” will confine our thinking power.

.

Ameer Al-Saleh , 2005 3

INDEX Mission And Objective Flash Points Fact Sheet Sample of Designs VE Job Plan 1. Information Gathering Phase 2. Function Analysis Phase3. Creative Phase4. Evaluation Phase5. Development Phase6. Presentation Phase Conclusion


Mission and Objective Main objective of this paper is : to

introduce Value Engineering job plan on Residential housings in Saudi Arabia based on effective layout consolidation.

Intermediate Objective: elevate the awareness among the public of layout cost impact construction wise , and schedule wise.

Mission: Get maximum Riyal (SR,) value in , during , by end of construction activity of residential houses.


Flash Points “Value engineering is a creative, organized approach

whose objective is optimize the life cycle cost and/or performance of a facility.”

“ Main VE team’s objective is to analyze the project (service/equipment/facility) , find high cost areas, recommend alternatives, and estimate initial and life cycle costs for the original design and for each proposal alternative.”


Information Phase “Whatever a man dose, he must do first in his

mind.” - albert szent-Gyorgyi (1893-1986) Hungarian-American Biochemist.

Key Questions

What is it? What does it do? What must it do? What does it cost? What is the budget? What is it worth?


Data SourceInformation Phase Consultation & Document RecordProject: Residential unit

Location: Dammam

Study Title: Layout effectiveness ( Cost / Schedule) - VEINFORMATION SOURCE Phone No. MAJOR POINTS OF DATAName, Title, Organization, (If Applicable)or Reference Document

Designer Sketch+ detail Engineering drawings

Owner Sketch

Jubail Royal Comission Booklet Annual Report, issue of 2000


Facts Sheet Average income is …./year/employee Nation Growth Rate is 3.5 %/Year Government Residential Loan takes 15 years to get. Average Real Estate Loan is more than 50 % interest for

6 year span ( recently activated) The official estimation stated that Saudi is in need of 1

million housing units within the forthcoming 5 years. Average house cost is 1.2 million in a city( as of 2004

estimation). Material cost jumped more than 40% since October last

year. Huge number Of Saudis are renting their shelter .


Residential Layout in KSA Presentation 8-18 is mainly for general layout concept

(current Practice). Saudi Family have a man sitting room, a women sitting

room , and a living room. Average utilization of Man / women sitting room have

been sharply declined due to social behavior and modernization.

The average area of Man & Women Sitting rooms is 114 M2 in sum.

Hereinunder examples of some houses and their layouts.

12Ameer Al-Saleh , 2005


إضغط الرجاء


Flash Fact Sheet on the Project ( Original Plot) Project Type: Residential Apartments Building Total Land’s Area: 700 M2 Construction allocated area = 420 M2 Total number of Building’s Stories= 2 Parrot surface = (16+30) * 2 = 92 Meter long

equivalent to 46 M2 Circumferential Fence Wall length = 35* 2 +

20 = 90 meter length, equivalent to 45 M2 Upstairs Lounge Construction Area = 80 M2 Total Construction Area = 420 * 2 + 46 +

45+80 = 840+46 + 45 + 80= 1011 M2


Preliminary Cost Estimation

Description Unit rate (SR/M2) Total quantity Total Cost, SR

Land Cost* 700 700 490,000Construction Cost “

Commercial 550 1011 556050

Deluxe 850 1011 859350

Super deluxe 1500 1011 1516500

Power connection fee

5000 7 35000

Water Proof - Toilet 50 30 1500

Water Proof - Roof 515 17 8750

Total Cost

Commercial 1090350

Deluxe 1393650

Super deluxe 2050800


Project Stages Concept Development (Basic Design ) Develop Preliminary Cost Estimation Detail Engineering Drawings Design Material Specification Development Detail Construction Estimation Calculation Project Bidding Technical / Commercial Evaluation study Project Contract Awarding Project Execution


Project Execution A- Site preparation B- Site Layout C- Foundation Layout D- Foundation & Ground Bean ‘s Concrete Pouring E- Column Rebar Preparation F- Column’s concrete Pouring G- Floor Slab preparation/ Concrete pouring H- Wall Block Layout I- Doors/ Window Preparation J- Exterior / Interior Plastering K- Painting L- Electrical lightings/switch installation M- Building turn over to owner


Project BudgetCost Code

Work Type Unit QuantityDirect

Labor CostLabor Unit

CostEquipment

CostEquipment Unit Cost

Material Cost

OVERHEAD

Total Cost

1.0 Excavation CUM 320.4 696 2.17 1814 5.66 118 2628.00

2.0 Backfilling CUM 363 322 0.89 2632 7.25 55 3009.00

3.1 Concrete: Lean CUM 43.5 304.5 7.00 5655 82 6041.50

3.2 Concrete: Foundation CUM 106.5 958.5 9.00 17040 288 18286.50

3.3 Concrete: Beam CUM 21 189 9.00 3150 38 3377.00

3.4 Concrete: Columns CUM 80.3 562.1 7.00 12045 73 12680.10

3.5 Concrete: Slabs CUM 181.5 1270.5 7.00 25410 318 26998.50

4.0 Formwork CUM 1616 9003 5.57 21008 1711 31722.00

5.0 Rebars/ Reinforcement CUM 203 5938 29.25 3600 17.73 39382 1781 50701.00

6.1 Extrior CMU Wall CUM 660 6848 10.38 11138 1575 19561.00

6.2 Interior CMU Wall CUM 942 9773 10.37 15896 2248 27917.00

6.3 Hourdy Blocks CUM 486 5042 10.37 8201 1160 14403.00

6.4 Plaster CUM 4134 24822 6.00 20685 7447 52954.00

7.0 Moisture Protection JOB 8700.00

8.0 Doors & Windows JOB 99517.00

9.1 Painting SQM 4137 49644 12.00 21584 10425 81653.00

9.2 Ceramic Tiles SQM 189 3780 20.00 3402 1134 8316.00

9.3 Flooring SQM 897 15249 17.00 10764 4575 30588.00

10.0 Plumbing HR 528 17553 33.24 60441 4038 82032.00

11.0 Electrical HR 384 15072 39.25 34944 3467 53483.00

Total 15292.2 167026.6 235.51 8046 30.65 310745 40533

= 634,567.60Project Total Cost

Project BudgetJob:


Project Construction Schedule

Excavation & Backfilling 1

Concrete:Lean 1

Foundation 3

Beams 3

Columns 2

Slabs 3

Formwork 13

Rebars 12

Masonry Work:

CMU Wall 8

Plaster 6

Moisture Protection 4

Doors & Windows 2

FinishesPainting 6

Ceramic Tiles 4

Flooring 5

Plumbing 11

Electrical 8

39 4035 36 37 3831 32 33 3427 28 29 3023 24 25 2619 20 21 2215 16 17 1811 12 13 147 8 9 103 4 5 6Task 0 1 2Duration (w eek)


Function Analysis Phase “It is better to aim at perfection and miss than

it is to aim at imperfection and hit it.-T.J.Watson

Basic Function of House: shelter residents

FAST Diagram The Esteem value ( prestigious,and

Social value) Vs. Use Value .


Function Analysis

Key Questions:

What does it DO?

What MUST it do?

What does function COST NOW?

What is it WORTH?

Is the function BASIC, SECONDARY or REQUIRED SECONDARY?


Function Analysis Project: Residential Unit - Ameer alSaleh Project

Layout Effectiveness Date:__________________Basic Function No.:__________________

Initial Worth*** Cost/

Verb Noun Kind* Cost** Worth

House Shelter people B 1100514 915002 1.2 VE initiated

Shelter Resident

* B = Basic Function S = Secondary FunctionRS = Secondary Function (Required)

** Original Cost Estimate

*** Worth - Least Cost to Accomplish Function

CommentsSub Component Description

WS 8

Function


FAST DiagramFAST Diagram Procedures

Later TimePrior Time

BasicFunction

RequiredSecondaryFunction



LowerOrderFunctionInput

HigherOrderFunctionOutput

ConcurrentSecondaryFunctions



Functions that

happen "At the

same time and/or

are caused by"

some other

function.

SecondaryFunction

SecondaryFunction

Scope of Problem Under Study

Critical Path of

Functions

DesignObjective

DesignObjective

DesignObjective

One Time

Functions

Functions that

happen

"All the Time"

HOW?

WHY?

WHEN

Sam

e T

im

e

Sam

e T

im

e


Creative Phase

Key Question: What else will do the job? (Take ONE function at a time) Out of 20 ideas, 3 was considered,

1 was thoroughly evaluated.


Creative Idea WorksheetCreative/Evaluation Worksheet Date

Project:

No. Idea Advantages Disadvantages Ratings*

1 Rent Isteraha to host Friends or social occasion Headache free expense addition 2

2 Host guest in hotels Headache free expense addition 4

3 Get all friends in Living room , segregate women from men

Effective space and activities Social and cultural resistance 3

4 Do invite one type of sex at the same time. More effective and occasion control Failures in boost family ties. 1

5 Stop social ties till financially afford building good house

No consideration for M/W Majlis Isolation 5


Evaluation Phase “Change your thoughts and you change your world. “– Norman

Vincent Peale Economical layout of the residency was re-

evaluated to reduce cost. Cultural impact was reviewed vs. other culture

practices to reduce residential cost. The Esteem value ( prestigious,and Social

value) Vs. Use Value have been considered.


Cost/Worth ModelLegend: Areas Project: Residenial unit - Layout Effectiveness

Location: Dammam- KSAActual/Estimated Phase of Design: Phase

VE Target (Worth) Date: June-2005

Construction TOTAL

Contingency 15%

Escalation Construction at

Bid Date NOTES:634,567.00 95,185.05 729,752.05 Bldg. Type: Villa

519,655.00 77,948.25 597,603.25 Area 1001 M2

Construction Type Permenant

Excavation Support

2628

1,818.00

Backfiling Electrical Special System Doors/windows Final Work Plumbing Handing

3009 99517 82032

2,633.00 98,000.00

Concrete ( Lean/Salb)Electrical

Moisture Protection

Excavation & Backfill (Ex/In)/ Hurdy Block

Excavation & Backfill

Excavation & Backfill

69282 63483 8700 114835

58,231.00 34,985.00 55,860.00

Formwork MechanicalPainting.../Flooring

Structures Structures Structures Structures

31722 120558

21,013.00 35,798.00

Rebar/ ReinforcrmrnyInstromentation Equipment Equipment Equipment Equipment Equipment

50701

43,014.00

Support Metals Metals Metals Metals Metals

Cost/Worth ModelValue Engineering Study

WS 6


Development Phase “I hear and I forget. I see and I remember.I do and I

understand.” – Chinese Proverb Eliminate Majlis ( 30 M2-40 M2 ) and host guest in

hotels / Isteraha instead. Cancel Majlis’s toilet ( 8 M2-12 M2 ) Save Foyer space by integrate it with Living Room

(8 M2-22 M2 ) Same is applicable for a Women Sitting room Total Saving ( SR) is rounded to 114,000 per 2 story

building as capital + construction cost. Potential Construction Schedule Saving is 2 months This saving is equal to approx 10% of total expense.


Project Breakdown

I tem

No.Description Unit

Estimated

Quantity

Unit

Price

Estimated

Amount

1.0 Excavation CUM

2.0 Backfilling

3.1 Concrete: Lean CUM

3.2 Concrete: Foundation CUM

3.3 Concrete: Beams CUM

3.4 Concrete: Columns CUM

3.5 Concrete: Slabs CUM

4.0 Formwork SQM

5.0 Steel Rebars Ton

6.1 CMU Wall SQM

6.2 Plaster SQM

6.3 Moisture Protection SQM

7.0 Doors & Windows EA

8.1 Painting SQM

8.2 Ceramic Tiles SQM

8.3 Flooring SQM

9.0 Plumbing

10.0 Electrical

Unit Price Schedule


Project Budget- Cost WiseCost Code



CostEquipment


Material Cost

OVERHEAD

Total Cost

1.0 Excavation CUM 320.4 696 2.17 1814 5.66 118 2628.00

2.0 Backfilling CUM 363 322 0.89 2632 7.25 55 3009.00


3.2 Concrete: Foundation CUM 106.5 958.5 9.00 17040 288 18286.50



3.5 Concrete: Slabs CUM 181.5 1270.5 7.00 25410 318 26998.50

4.0 Formwork CUM 1616 9003 5.57 21008 1711 31722.00





6.4 Plaster CUM 4134 24822 6.00 20685 7447 52954.00


8.0 Doors & Windows JOB 99517.00

9.1 Painting SQM 4137 49644 12.00 21584 10425 81653.00


9.3 Flooring SQM 897 15249 17.00 10764 4575 30588.00

10.0 Plumbing HR 528 17553 33.24 60441 4038 82032.00

11.0 Electrical HR 384 15072 39.25 34944 3467 53483.00

Total 15292.2 167026.6 235.51 8046 30.65 310745 40533

= 634,567.60Project Total Cost

Project BudgetJob:


Worth Wise Cost Code



CostEquipment


Material Cost

OVERHEAD

Total Cost

1.0 Excavation CUM 300 696 2.32 1814 6.05 100 1816.32

2.0 Backfilling CUM 250 322 1.29 2632 10.53 55 2633.29


3.2 Concrete: Foundation CUM 92 958.5 10.42 17040 288 17050.42



3.5 Concrete: Slabs CUM 173 1270.5 7.34 25410 318 25417.34

4.0 Formwork CUM 1549 9003 5.81 21008 1711 21013.81





6.4 Plaster CUM 3612 24822 6.87 20685 7447 20691.87


8.0 Doors & Windows JOB 2 200 100.00 500 23 98000.00

9.1 Painting SQM 3612 49644 13.74 21584 10425 21597.74


9.3 Flooring SQM 767 15249 19.88 10764 4575 10783.88

10.0 Plumbing HR 498 17553 35.25 60441 4038 74900.00

11.0 Electrical HR 364 15072 41.41 34944 3467 40000.00

Total 13448.8 167226.6 364.80 8046 36.14 311245 40538

= 436,494.14 Project Total Cost


Calculation Detail-Page 1

Direct Indirect

1 Excavation 302.4 CUM Labor:

1 Forman @ 17 SR = 17 SR

1 Operator @ 9 SR = 9 SR

4 Laborers @ 5 SR = 20 SR

Crew hourly rate = 46 SR

Production Rate = 20 CUM per hr

302.4 /20 * 46 SR = 695.5 SR 696 118 814

Equipment

1 Shovel @ 120 SR = 120 SR

302.4 / 20 * 120 = 1814 SR 1814 1814

Total 2628

2 Backfilling 363 CUM Labor:





Production Rate = 35 CUM per hr

363 /35 * 31 SR = 321.5 SR 322 55 376

Equipment

1 Dozer @ 145 SR = 145 SR

363 / 35 * 145 2632 SR 2632 2632

Total 3008

3.1 Concrete: Lean 43.5 CUM Labor:

Labor Unit Cost = 7 SR

= 43.5 x 7 = 304.5 SR 304.5 82 386.715

MaterialMaterial Unit Cost 130 SR/ CUM

= 43.5 x 130 = 5655 SR 5655 5655Total 6042

Total Cost

Summary Sheet

Labor CostCost Code

Work Type Quanity Unit CalculationEquipment

CostMaterial

Cost


Calculation Detail- Page 23.2 Concrete: Foundation 106.5 CUM Labor:


= 106.5 x 9 = 958.5 SR 958.5 288 1246.05MaterialMaterial Unit Cost 160 SR/ CUM

= 106.5 x 160 = 17040 SR 17040 17040Total 18286

3.3 Concrete: Beam 21 CUM Labor:


= 21 x 9 = 189 SR 189 38 226.8MaterialMaterial Unit Cost 150 SR/ CUM

= 21 x 150 = 3150 SR 3150 3150Total 3377

3.4 Concrete: Columns 80.3 CUM Labor:


= 19.2 x 7 = 562.1 SR 562.1 73 635.173MaterialMaterial Unit Cost 150 SR/ CUM

= 80.3 x 150 = 12045 SR 12045 12045Total 12680

3.5 Concrete: Slabs 181.5 CUM Labor:


= 181.5 x 7 = 1271 SR 1270.5 318 1588.125MaterialMaterial Unit Cost 140 SR/ CUM

= 181.5 x 140 = 25410 SR 25410 25410Total 26998


Calculation Detail – Page 34.0 Formwork 1616 SQM Labor:


1 Carpenter @ 8 SR = 8 SR




Production Rate = 7 SQM per hr

1616 / 7 * 39 = 9003 SR 9003 1711 10714

Equipment

1 Crane @ 120 SR = 120 SR

30 hr * 120 = 3600 SR 3600 3600

Total 14314

5.0 Rebars/ Reinforcement 20.3 Ton Labor:

0.25 Sk Forman @ 21 SR = 5.3 SR

4 Steel Fixture @ 13 SR = 52 SR

0.5 Crane Opert @ 15 SR = 7.5 SR

0.5 Opert. Oiler @ 8 SR = 4 SR

1 Helper @ 5 SR = 5 SR



Production Rate = 0.3 Ton per hr

20.3 / 0.3 * 88 = 5938 SR 5938 1781 7719

Material

Material Unit Cost 1940 SR/ Ton

= 20.4 x 1940 = 39382 SR 39382 39382

Equipment

1 Crane @ 120 SR = 120 SR

30 hr * 120 = 3600 SR 3600 3600

Total 50701


Calculation Detail- Page 4

06 Masonary Work

6.1 Extrior CMU Wall 660 SQM Labor:

0.25 Forman @ 17 SR = 4.3 SR

4 Bricklayer @ 12 SR = 48 SR




660 / 6 * 62 = 6848 SR 6848 1575 8422

Material

Material Unit Cost = 1.35 SR/ EA

= 660m2 x 12.5 EA /m2 = 8242 EA

= 8242 x 1.35 11138 SR 11138 11138

Total 19560

6.2 Interior CMU Wall 942 SQM Labor:

0.25 Forman @ 17 SR = 4.3 SR





942 / 6 * 62 = 9773 SR 9773 2248 12021

Material


= 942m2 x 12.5 EA /m2 = 11771 EA

= 11771 x 1.35 15896 SR 15896 15896

Total 27917


Detail Calculation- page 5

6.3 Hourdy Blocks 486 SQM Labor:0.25 Forman @ 17 SR = 4.3 SR





486 / 6 * 62 = 5042 SR 5042 1160 6202

Material


= 486m2 x 12.5 EA /m2 = 6075 EA

= 6075 x 1.35 8201 SR 8201 8201

Total 14403

6.4 Plaster 4137 SQM Labor:


= 4137 x 10 = 24822 SR 24822 7447 32268.6

Material

Material Unit Cost 5 SR/ SQM

= 4137 x 7 = 20685 SR 20685 20685

Total 52954

7.0 Moisture Protection JOB

Sub Contract 8700 SR 8700

Total 8700


Detail Calculation – Page 68.0 Doors & Windows JOB

Sub Contract 99517 SR 99517

Total 99517

9.0

9.1 Painting 4137 SQM Labor:


= 4137 x 10 = 49644 SR 49644 10425 60069

Material

Material Unit Cost 12 SR/ Ltr

=4137 m2 / 2.3 m2 * ltr = 1799 ltr

= 1799 ltr x 12 sr/ ltr = 21584 SR 21584.35 21584

Total 81654

9.2 Ceramic Tiles 189 SQM Labor:


= 189 x 20 = 3780 SR 3780 1134 4914

Material


= 189 x18 = 3402 SR 3402 3402

Total 8316

9.3 Flooring 897 SQM Labor:


= 189 x 20 = 15249 SR 15249 4575 19823.7

Material


= 189 x18 = 10764 SR 10764 10764

Total 30588


Detail calculation – Page 7

10.0 Plumbing 528 hr Labor:

0.25 Forman @ 17 SR = 4.3 SR

1 Plumber @ 12 SR = 12 SR

1 Pipe Fitter @ 12 SR = 12 SR



Required Man Hour = 528 hr (11 Week)

= 528 x 33 = 17556 SR 17556 4038 21594

Material

Bulk Material = 60441 SR 60441 60441

Total 82035

11.0 Electrical 384 hr Labor:

0.25 Forman @ 17 SR = 4.3 SR

2 Electrician @ 15 SR = 30 SR



Required Man Hour = 384 hr (8 Week)

= 384 x 39 = 15072 SR 15072 3467 18539

Material

Bulk Material = 34944 SR 34944 34944

Total 53483


Presentation Phase

Out of this discussion , we believe there are a potential saving for house owner in so many dimension . Among most items is the plot layout. Another concept for value engineering study building materials.


What is value engineering? I am reminded of the quote in our local fast food shop: “ the bitterness of poor

quality remains long after the sweetness of low price is forgotten”The VE job plan “failing to plan is the same as planning to fail”The information phase Whatever a man dose, he must do first in his mind.- albert szent-Gyorgyi (1893-

1986) Hungarian-American BiochemistFunction Analysis system technique “it is better to aim at perfection and miss than it is to aim at imperfection and

hit it.-T.J.WatsonThe evaluation phase Change your thoughts and you change your world. – Norman Vincent PealeLife cycle costing Initial capital costs is but a fraction of the total life cycle cost of a facilityThe development phase I hear and I forget. I see and I remember.i do and I understand. – Chinese

ProverbThe presentation phase A picture is worth a thousand words


Al-yousefi, A., Al-Huwaiter,A.,Al-Oshaish, S.,Shublag, E., (1999) “Value engineering in Saudi Arabia overview & application in public and private sectors”, Proceedings of the Society of American Value Engineering Conference.

ATSME 1699-00, Standard Practice for Performing Value Analysis (VA) of Buildings and Building Systems

Fowler, T.C (1983). “The User Oriented FAST Diagram. “ Proceedings of the Society of American Value Engineering Conference.

Value Engineering manual, Utah Department of Transportation, Engineering Services

Q & A

• Thank you for your listening. Now , it is your turn to ask, please do if you have any question(s).

value engineering study case done by: ameer a. al-saleh ( id# 850651) for: dr. sadi assaf summer...

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