Key Principles

1. Focus on Function
Every value engineering (VE) exercise begins by identifying the essential functions of each project element. Any proposed changes must maintain — or improve — these core functions.

2. Balance Cost, Quality, and Function
The objective of VE is not to cut costs arbitrarily, but to maximize value by achieving the best combination of performance, quality, and cost efficiency.

3. Collaboration
Value engineering is a team effort involving the client, engineers, designers, and contractors. Collaborative reviews often uncover the most innovative and practical solutions.

4. Early Involvement
The greatest benefits come when VE is applied early in design development, though it can also yield significant savings when implemented during procurement or construction.

Drawing Set Review

Conducting a thorough drawing review during the bidding or estimating phase can uncover constructability issues, missing information, and cost-saving opportunities before fieldwork begins.

Process & Instrumentation Diagrams (P & IDs)

Challenge: Exotic materials (e.g., stainless steel) are specified for non-corrosive environments.

VE Solution: Review process data to confirm suitability and propose carbon steel alternatives.

Challenge: Excessive isolation valves or bypass lines inflate material and labor costs.

VE Solution: Analyze operational requirements and eliminate unnecessary components while maintaining safety.

Challenge: Custom-engineered skids are specified for standard process equipment.

VE Solution: Recommend standardized modular skids to reduce design time and take advantage of economies of scale.

Mechanical & Piping Layout Drawings

Challenge: Long, complex pipe runs with multiple bends and fittings.

VE Solution: Simplify routing to reduce material, fittings, and labor.

Challenge: Oversized or inefficiently located equipment on the plot plan.

VE Solution: Optimize layout to minimize footprint, reducing civil, structural, and
electrical costs.

Challenge: High-cost weld procedures specified where not required.

VE Solution: Reassess pressure and temperature design criteria to allow less stringent, code-compliant procedures.

Challenge: Heavy-duty structural frames where lighter supports would suffice.

VE Solution: Optimize based on actual load calculations and standard profiles.

Electrical, Instrumentation & Controls (EI&C)

Challenge: Separate cable trays for each instrument cable.

VE Solution: Combine compatible cables into shared trays to reduce material and labor.

Challenge: Industrial-grade instruments used for non-critical monitoring.

VE Solution: Substitute commercial-grade instruments where possible.

Challenge: Entirely new control system specified.

VE Solution: Integrate with existing control infrastructure to reduce hardware, software, and training costs.

Civil & Structural Drawings

Challenge: Deep, over-designed foundations.

VE Solution: Reevaluate geotechnical data and propose shallower, more efficient
foundations.

Challenge: High-cost materials specified for access roads.

VE Solution: Use gravel or alternative surfacing where suitable for operational needs.

Challenge: Expensive underground storm drains specified.

VE Solution: Substitute open-ditch drainage in non-critical areas.

General Documentation

Challenge: High-cost components specified beyond project requirements.

VE Solution: Identify and analyze cost/worth to find lower-cost alternatives meeting function.

Challenge: Redundant work packages or overlapping scopes.

VE Solution: Consolidate and streamline packages to reduce administrative and
contracting overhead.

Material Inventory and Verification

• Verify pipe and fitting quantities against isometric drawings before delivery to catch discrepancies early.
• Confirm that billed quantities match delivered materials and inspect for damage immediately upon arrival.
• These checks prevent schedule interruptions, reduce change orders, and ensure cost alignment with actuals.

Backfill Materials & Methods

Recycled and Alternative Backfill

• Propose recycled backfill from licensed suppliers when compliant with project specifications.
•  Evaluate multiple options (e.g., SE-30 sand vs. washed sand) to identify cost-effective solutions.
• Consider flowable fill to reduce labor, compaction effort, and overall project duration.

Utility Trench Backfill – Flowable Fill Advantages

Faster completion: Reduces backfill duration from 5–7 days to 1–2 days.

Reduced labor and equipment: Self-leveling, self-compacting; cuts costs up to 70%.

No settlement: Prevents future dips or cracks, reducing maintenance.

Improved safety: Eliminates need for trench entry during compaction.

Faster reopening: Rapid set times allow for same-shift restoration.

Considerations:

• Higher unit material cost offset by reduced labor and maintenance.
• Potential for pipe flotation; proper anchoring required.
•  Dependent on reliable ready-mix delivery (cannot be stockpiled).
•  Use re-excavatable mix designs (100–150 psi) when future access is possible.

Other Cost-Saving Practices

• Reuse native materials using padding buckets.
•  Stockpile backfill to minimize handling and haul distances.
• Match equipment type and size to project needs.
•  Optimize scheduling to reduce idle time for excavation crews.

Excavation, Shoring & Sloping

• Recycle excavated soil where feasible.
• Evaluate alternate shoring and sloping methods to minimize handling and disposal.
•  Address site space constraints through earth form design to reduce excavation volumes and formwork needs.

Concrete Mix Designs

Material Substitution: Explore cost-effective aggregates, cement types, or admixtures
that maintain performance.

Design Optimization: Reduce concrete volume through efficient slab and reinforcement
design.

Early-Strength Mixes: Propose mixes that reach required strength faster to shorten
critical path durations.

Construction Methods: Use efficient pouring, pumping, and finishing equipment.

Life-Cycle Analysis: Evaluate total cost of ownership, factoring in durability and
maintenance.

Offsite Pipe Fabrication

Advantages:

• Quality & Consistency: Controlled environments ensure precision and minimize
  rework.
• Safety: Reduced exposure to field hazards.
• Accelerated Schedules: Parallel on-site and off-site activities shorten project duration.
• Cost Efficiency: Higher productivity, less waste, and reduced overhead.
• Improved Testing & Inspection: Allows for comprehensive QA/QC before delivery.
• Reduced Site Congestion: Smaller onsite footprint and better logistics.

Hydrotesting Value Engineering

Optimize Test Segments: Analyze elevation profiles to combine segments and reduce
setup costs. 

Water Management: Plan early for sourcing, transport, and reuse of test water.

Combined Testing & Commissioning: Use product medium for commissioning where
feasible.

Enhanced Preparation: Clean and fill pipelines efficiently to prevent retests and delays.

8–11. Additional Opportunities

8. Leverage industry connections to identify alternative contractors or partners.
9. Coordinate supplier shipments to align with construction schedules.
10. Continuously seek cost-effective material alternatives based on availability and pricing
trends.

Conclusion

Value engineering is about achieving more with less — delivering equal or superior performance
while optimizing cost, safety, and constructability. When implemented proactively and collaboratively, VE not only reduces project costs but also strengthens design quality, field efficiency, and long-term asset reliability.

Want to work together? Email us at ryan@ryancoconstruction.com