United States
Environmental Protection
Agency
September
1984
oEPA Value
Engineering
For
Wastewater
Treatment
Works
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Value Engineering For Waste
Introduction
Value engineering (VE) is a specialized cost control
technique applied by an independent team of
experienced multidisciplined professionals during the
design of wastewater treatment works. VE provides a
systematic, functional and creative study of a proposed
wastewater treatment facility to identify life cycle cost
savings without sacrificing performance or reliability.
From 1977 to 1983, the EPA's value engineering
program produced a $15 return on each dollar invested
in VE studies and a 5.4% net capital savings on $7.5
billion worth of total construction costs. The VE
program also produced additional benefits of operation
and maintenance cost savings and enhanced reliability.
These benefits were achieved with VE study costs of
less than 0.4 percent of the total construction costs.
While VE studies are required on all proposed
wastewater treatment works with estimated construction
costs greater than 10 million dollars, EPA encourages
the use of VE on projects of less than $10 million since
they offer similar potentials for cost savings.
Strategy For a Value Engineering Study
The VE study is divided into four sequential periods of
activity:
(1) administrative (contracting) activity,
(2) pre-workshop activity,
(3) VE workshop, and
(4) post-workshop activity.
Figure 1 is a VE study task flow diagram outlining
these activities. The VE workshop is the major
component of the VE study.
The scope of the VE effort will depend on the size,
cost, and complexity of the facility. Most wastewater
treatment projects with costs over $10 million require
two studies to obtain maximum VE benefits (See
Figure 2). The first VE workshop occurs when the
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water Treatment Works
project design is 20 to 30% complete and the second
workshop occurs at 65 to 75% of design completion.
One VE study is usually sufficient for small
non-complex facilities. A single VE workshop should be
performed at 20 to 30 percent of design completion.
Administrative (Contracting) Activity
Dealgner'a Services
Designer/Owner Contract to
Support VE Study
VE Included in Design
Schedule
Pre-Workshop Preparation
Coordination Meeting
Schedule
Outline Format tor Cost Data
Develop Format lor Designer
Presentation
Outline Needed Background
Data
Outline Project
Responsibilities
VE Workshop
Orientation
Introduction
Project Description and
Presentation
Outline Project Requirements
Post-Workshop Activity
Final VE Report
Review VE Report
Prepare Final VE Report
Implement Accepted
Recommendations
RFP
Owner Supplies Facility
Owner Defines Schedule,
Scope, Number of VE
Studies, and Evaluation
Criteria
Preparation
Collect Design Data
Confirm Team Composition
Distribute to Team Members
Assemble Cost Data
Familiarization with Data by
Team Members
Select Location for Workshop
Information Phaae
Analyze Project Costs
Analyze Energy Usage
Function Analysis
Identify High Cost Areas
Identify High Energy Areas
Develop Cost/Worth Ratios
List Ideas Generated During
Function Analysis
Final Acceptance
Owner/Agency Interface
Agency Acceptance
of Final VE Report
^^
VE Consultant'! Proposal
Defines Approach, VE
Composition, and Level of
Effort
Construct Co«t Model*
Distribute Costs by Process __
Areas or Major Component,
or Both
Identify High Cost Areas
Develop Energy Model
Distribute Costs by Process
or Both
Identify High Cost Energy
Areas
Speculative/
Creative Phaee
• Quantity of Ideas
• Association of Ideas
Brainstorming
Individual Creative Ideas
1 Use Checklist tor Ideas L
Figure 1. VE Study Task Flow Diagram
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The VE team members should be experienced design,
operation and construction professionals familiar with
the principles of value engineering. The composition of
each VE team should reflect the complexities of the
specific project. At least two members of each VE team
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should be experienced in the major high cost areas OT
the project. The VE Team Coordinator (VETC) plays a
key role in the success of the VE study. This individual
manages all aspects of the study.
Pre-Workshop Activity
Prior to the workshop the owner, designer, and VETC
meet to confirm the VE study schedule and form a
consensus on the study objectives. During this stage,
the VETC accumulates the technical and cost data on
the project. The technical data consist of feasibility and
engineering reports, pertinent regulations, discharge
permits, plus all current design drawings and
specifications. The cost data consist of cost estimates
for the equipment, construction, operation and
maintenance of the wastewater treatment works. This
information is used to develop cost, energy and life
cycle models which aid the VE team in the rapid
analysis and identification of high cost areas or
components of the facility during the workshop.
The VE Workshop
The VE workshop is accomplished through a Job Plan
with five distinct phases:
(1) Information Phase: The VE team gains as much
information as possible on the project design,
background, constraints and projected costs. The
team performs a function anyalysis of the project to
identify high cost areas.
(2) Speculative/Creative Phase: The VE team uses a
group interaction process to identify alternative
ideas for accomplishing the function of a system or
subsystem.
(3) Evaluation/Analytical Phase: Alternative ideas are
screened and evaluated by the team. The ideas
showing the greatest potential for cost savings and
project improvement are selected for further study.
(4) Development/Recommendation Phase: The team
researches the selected ideas and prepares
descriptions, sketches, and life cycle cost estimates
for the VE recommendations.
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(5) Report Phase: VE recommendations are orally
presented to the owner and designer at the
conclusion of the workshop. A written VE Report is
prepared within one to three weeks after
completion of the workshop.
Post-Workshop Activity
The owner and designer thoroughly review and
evaluate each VE recommendation. A Final VE Report
is prepared to summarize the VE study. This report
describes the action taken on each of the VE
recommendations. Total or partial rejection of any VE
recommendation must be supported by valid reasons
which are specifically detailed in the report. The Final
VE Report and the VE Report serve as complete
documentation of the VE study.
Conclusion
Value engineering provides communities with an
excellent opportunity to reduce the present and future
costs of their wastewater treatment facilities. The
positive application of VE to individual wastewater
treatment projects can typically result in 5% to 10% net
capital cost savings plus additional operation and
maintenance cost savings.
Administrative (Contracting)
Activity
I
First VE Study at 20-30%
Design Completion
Pre-Workshop Activity
Finalize VE Team
Composition
Second VE Study at 65-75%
Design Completion
Pre-Workshop Activity
Finalize VE Team
Composition
Final VE Report Second
Workshop
Designer Implement Accepted
VE Recommendations
Designer Implement Accepted
VE Recommendations
Figure 2. VE Row Diagram: Normal Sequence (Two VE Studies)
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Reference: U.S. E.P.A. "Value Engineering For Wastewater
Treatment Works" 1984.
For additional information contact:
EPA-OWPO(WH-547) EPA-MERL (489)
401 M Street, SW 26 West St. Clair Street
Washington, DC 20460 Cincinnati, OH 45268
(202)382-7370/7369 (513)684-7611
EPA Region 1 EPA Region 6
John F. Kennedy Federal Building 1201 Elm Street
Boston, MA 02203 Dallas, TX 75270
EPA Region 2 EPA Region 7
26 Federal Plaza 324 East 11th Street
New York, NY 10278 Kansas City, MO 64106
EPA Region 3 EPA Region 8
6th & Walnut Streets 1860 Lincoln Street
Philadelphia, PA 19106 Denver, CO 80295
EPA Region 4 EPA Region 9
345 CourHand Street, NE 215 Fremont Street
Atlanta, GA 30365 San Francisco, CA 94105
EPA Region 5 EPA Region 10
230 Soutti Dearborn Street 1200 6th Avenue
Chicago, II60604 Seattle, WA 98101
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