Example - Value Engineering Study/Workshop Proposal

The Thomas Consulting Group LLC.

Financier

Operator

Designer

Owner
User

V.E.
Architectural

Mechanical

Electrical

Structural

Civil

Process
Table of Contents
Proposed Value Engineering Study
Construction Cost Data
Proposed 5 Day VE Study Fee
Cost/Worth Model Example
Includes study title, proposal date, study type, project type,
project location, and project estimate information.
Conceptual building costs and ve target costs.
Pre-Workshop, Workshop, Post Workshop Fees, and ROI
Client's Potential Return On Investment (USD)
Hotel in Riyadh, Saudi Arabia (Example)
 Recent Value Engineering Study Proposal Example

Study Title : Jakarta Office Building

Proposal Date : April 2, 2005
Study Type : Facilitate A 5 Day VE Study/Workshop
Project Type : Multi Story Office Building
Project Location : Jakarta, Indonesia
Project Estimate : 150 Billion (IDR) = $15,831,051 (USD)
Submitted To :

Submitted By : The Thomas Consulting Group LLC.

Richard D. Ridgeway
VE Program Manager
thomasconsultgroup@sbcglobal.net
 CONSTRUCTION COSTS FOR JAKARTA, INDONESIA - Indonesia Rupiahs
Multi Story Offices Buildings - (Excluding tenancy works)

Type of Quantity Unit Rp/m2 Original Design Estimated VE Estimated

Building Estimated Cost Target Cost Potential VE
Savings
Central
Business
District;
Prestigious 25,821 SQM Rp5,809,011 Rp149,994,473,031 Rp140,994,804,649 Rp8,999,668,382
Central
Business
District;
Investment 31,560 SQM Rp4,752,827 Rp149,999,220,120 Rp140,999,266,913 Rp8,999,953,207
Suburban
District;
Investment 37,872 SQM Rp3,960,689 Rp149,999,213,808 Rp140,999,260,980 Rp8,999,952,828

Estimated Potential VE Savings in dollars = $949,858

Note: 1 USD = 9,475.05 IDR
 *Proposed 5 Day VE Study Fee - United States Dollars
Jakarta, Indonesia
Note: *This client was the design firm for the project’s owner, and provided his employees as VE Team Members.
VE Team Members - Quantity Unit Mat'l Total Man *Labor Total Total Cost
Cost/Unit Mat'l Hours Rate Labor
Pre-Workshop Phase Cost Cost

CVS Study Facilitator (Our

employee) 1 Each 0 0 20 $200 $4,000 $4,000
Architect (Your employee) 1 Each 0 0 15 NA NA
Electrical Engineer (Your
employee) 1 Each 0 0 15 NA NA
Civil Engineer (Your employee) 1 Each 0 0 15 NA NA
Mechanical Engineer (Client
employee) 1 Each 0 0 15 NA NA
Estimator (Client employee) 1 Each 0 0 15 NA NA
Sub-Total $4,000
In-Direct Costs
Telephone 1 Allow $200 $200 $200
Mailing 1 Allow $100 $100 $100
Sub-Total $300
Pre-Workshop Phase Total $4,300
VE Team Members -
Workshop Phase
CVS Study Facilitator (Our
employee) 1 Each 0 0 40 $200 $8,000 $8,000
CVS Study Facilitator (Travel
time to Jakarta and return) 4 Days $1600 $3,200 $6,400
Architect (Client employee) 1 Each 0 0 40 NA NA
Electrical Engineer (Client
employee) 1 Each 0 0 40 NA NA
Civil Engineer (Client
employee) 1 Each 0 0 40 NA NA
Mechanical Engineer (Client
employee) 1 Each 0 0 40 NA NA
Estimator (Client employee) 1 Each 0 0 40 NA NA
Sub-Total $14,400
In-Direct Costs
Air Travel (Round trip) 1 Allow $2,000 $2,000 $2,000
Hotel Accommodations & Per
Diem 6 Day $200 $1,200 $1,200
Sub-Total $3,200
 Workshop Phase Total $17,600

Post-Workshop Phase
CVS Study Facilitator (Our
employee) 1 Each 0 0 20 $200 $4,000 $4,000
Telephone 1 Allow $200 $200 $200
VE Report Printing 12 Each $20 $240 $240
Mailing 1 Allow $200 $200 $200
Post-Workshop Phase Total $4,640

VE Study Fee Grand Total $26,540

Note: *Our labor rate is actually
lower

Client's Potential Return On Investment (USD)

For
VE Study
Potential VE Savings VE Study Fee Return On Investment

$949,858
/ $26,540
= 36:1
NOTE: Return on investment of 60:1 is possible using VE methodology

For A Free VE Bid Proposal: Click Here