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35 This synthesis summarizes current value engineering (VE) practices in highway transportation agencies (STAs) in the United States and Canada. It builds on the findings of NCHRPâs initial look at VE in transportation (NCHRP Syn- thesis of Highway Practice 78) in 1989 and highlights the results of a comprehensive survey of STAs and an extensive literature search. Although there was considerable variation in the pro- grams and experiences of transportation agencies some com- mon ground was noted. The following list presents some of the general conclusions reached for this report. ⢠The VE process and procedures are generally well- defined and well-understood at most levels within an STA, including senior management. VE is recognized as an effective way to improve the performance of a project and/or reduce unnecessary capital and operating costs. ⢠The quality (qualifications and experience) of the team leader and specialists is a key ingredient to the success of the VE program. ⢠VE is more effective and influential on the perfor- mance, quality, and cost of a project when done rela- tively early in the project schedule. ⢠The $25 million cost threshold trigger for federal-aid projects serves as both motivation and as a limitation for some STAs. Some modest-size STAs with projects falling below the threshold rarely do VE, whereas some larger transportation agencies rarely consider VE on state-funded or lower-cost federal-aid projects. ⢠A commonly defined and understood approach to mea- sure implementation benefits (improved performance and/or lower life-cycle costs) of VE studies and VE pro- gram success needs to be developed. ⢠Training is necessary to maintain VE programs and the corporate enthusiasm to allocate resources to VE. How- ever, training initiatives are typically influenced more by the overall funding of transportation programs. ⢠VE can effectively be integrated with or into other tech- nical or management improvement approaches, such as asset management, road safety audits, context-sensitive design, and accelerated construction technology team. The detailed survey for this synthesis report provided insight into the current application of VE in the transporta- tion industry. The following topics emerged as areas of inter- est for future study. ⢠Education Transportation agencies have undertaken staff train- ing, which ranges from selective training for a few employees to the large-scale training programs involv- ing hundreds of employees. Although this commitment to continual education is commendable, the lasting value of the initiatives comes into question over time. Many of the agencies that invested in training programs did so several years ago as interest in VE heightened. How- ever, many agencies have reported that this investment needs to be renewed, because trained staff have either advanced, left, or retired from the organization. The challenge is finding the needed resources and interested staff to make this investment worthwhile. SAVE International developed its Module I and II courses some time ago. The Module I course serves as the genesis for most in-house programs. However, the context requirements and time commitments for the rudimentary courses have not been substantially updated in more than a decade. These courses are the primary building blocks of the certification process. Very little time is permitted within the context of these training courses to introduce new or VE-compatible materials. There exists the possibility that the value community will eventually deplete itself of current thinking and new innovative approaches. Survey responses indicate that consideration might be given to developing new training initiatives for STAs that provide basic level VE training. This could take the form of 1- or 2-day sessions, which can provide the formal lecture content equivalent to that found currently in the Module I workshop. ⢠Project Scope and Selection Many transportation agencies are primarily applying VE to federal-aid National Highway System projects costing more than $25 million, as required by regula- tion. However, the benefits of VE have been clearly demonstrated. Furthermore, the research and experience of other agencies suggests that VE can successfully be applied to projects that cost less than $25 million or are not on the National Highway System. CHAPTER FIVE CONCLUSIONS
Survey responses indicate that consideration could be given to developing a framework to select non- mandated projects for VE studies. Experience has shown that an STA can realize sub- stantial benefits by undertaking VE studies as early as possible in the life cycle of the project, including stan- dards and specifications. Stakeholder involvement and buy-in can be improved in their perspective if proac- tively considered during the early planning work. Survey responses indicate that consideration might be given to developing a consistent project devel- opment process that integrates National Environ- mental Policy Act and VE processes. ⢠Measuring Program Performance The mandated FHWA reporting protocol is intended to meet FHWAâs reporting needs. However, many agen- cies have yet to develop their own reports to quantify the productivity of their programs. A tracking program could yield additional insight regarding preferred VE approaches, serving as a central repository for data and supporting a stronger appreciation for the program. Survey responses indicate that consideration could be given to developing a VE program reporting template to provide program reporting informa- tion additional to that already generated for FHWA. ⢠Measuring Project Performance VE teams must be able to effectively communicate the full range of performance characteristics of the VE proposal to gain acceptance from the decision makers. Quantification of these characteristics is beneficial, because it permits a ready comparison of one or more alternatives. ⢠Integrating Road Safety into VE Studies Road safety is typically considered implicitly during VE studies. However, road safety can be explicitly consid- ered as part of VE studies by using crash prediction mod- 36 els or tables to generate the safety benefits associated with proposed geometric or operational changes. Survey responses indicate that VE teams could include road safety and human factors specialists to provide real-time input into the VE studies. ⢠Integrating VE with Context-Sensitive Design The benefits of VE can be realized in the early planning stages. An emerging area, context-sensitive design, which permits road designers to better integrate the road into the community or the environment, can incorporate the value methodology. Stakeholder communications and input can be managed using VE. ⢠Developing a National VE Database for Transportation Projects Transportation agencies across the country undertake hundreds of VE studies each year. These studies often target similar issues and it is not unreasonable to expect that, collectively, the agencies might be paying for the same VE proposal over and over. A fully accessible data- base could permit the transportation agencies to better focus its VE study resources by reviewing and adapting the results of previously studied but similar issues from other areas of the country. VE teams would be able to prioritize their time toward resolving new issues. Cre- ating such a database should be studied. VE applications have evolved since NCHRP last reviewed the process in 1981. Federal requirements have changed and now mandate VE on major federally funded projects. More agencies are now experienced with the decision-making tool and many have devel- oped successful programs. However, the status quo will diminish the results if left unchecked. Key areas to focus on include improving the training processes to maintain a knowledgeable workforce and expanding the focus of agency VE programs to consider non-NHS projects. New approaches such as project performance measures, enhanced evaluation methods, and building stronger linkages to other assessment tools, may serve as new development targets for VE applications in transportation.
