This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles

for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

Designation: E1699 − 14 (Reapproved 2020)

Standard Practice for

Performing Value Engineering (VE)/Value Analysis (VA) of
Projects, Products and Processes1
This standard is issued under the fixed designation E1699; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.

1. Scope The owner/user/stakeholder selects the alternative(s) that best

1.1 This practice covers a procedure for defining and satisfies their constraints, needs and desires.
satisfying the functions of a project, product, or process 1.5 Apply this practice to an entire focus of study, or to any
(hereafter referred to as focus of study). Projects include subsystem/element thereof. The user/owner/stakeholder can
construction of commercial and residential buildings and other utilize the VE/VA procedure to select the element or scope of
engineered systems.2 Products include components, systems the study.
and equipment.3 Processes include procurement, materials 1.6 This standard does not purport to address all of the
management, work flow, fabrication and assembly, quality safety concerns, if any, associated with its use. It is the
control, and services. responsibility of the user of this standard to establish appro-
1.2 A multidisciplinary team uses the procedure to convert priate safety, health, and environmental practices and deter-
stakeholder constraints, needs, and desires into descriptions of mine the applicability of regulatory limitations prior to use.
iTeh Standards
functions and then relates these functions to resources.
1.3 Examples of costs are all relevant costs over a desig-
1.7 This international standard was developed in accor-
dance with internationally recognized principles on standard-

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ization established in the Decision on Principles for the
nated study period, including the costs of obtaining funds,
Development of International Standards, Guides and Recom-
designing, purchasing/leasing, constructing/manufacturing/
mendations issued by the World Trade Organization Technical
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installing, operating, maintaining, repairing, replacing and
disposing of the particular focus of study. While not the only Barriers to Trade (TBT) Committee.
criteria, cost is an important basis for comparison in a VE/VA 2. Referenced Documents
study. Therefore, accurate and comprehensive cost data is an
important element of the analysis. ASTM E1699-14(2020) 2.1 ASTM Standards:4
E631 Terminology of Building Constructions
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1.4 This is a procedure to develop alternatives that meet the E833 Terminology of Building Economics
functions of the focus of study. Estimate the costs for each E917 Practice for Measuring Life-Cycle Costs of Buildings
alternative. Provide the owner/user/stakeholder with specific, and Building Systems
technically accurate alternatives which can be implemented. E1369 Guide for Selecting Techniques for Treating Uncer-
tainty and Risk in the Economic Evaluation of Buildings
1
This practice is under the jurisdiction of ASTM Committee E06 on Perfor- and Building Systems
mance of Buildings and is the direct responsibility of Subcommittee E06.81 on E1557 Classification for Building Elements and Related
Building Economics.
Current edition approved Oct. 1, 2020. Published October 2020. Originally Sitework—UNIFORMAT II
approved in 1995. Last previous edition approved in 2014 as E1699 – 14. DOI: E1765 Practice for Applying Analytical Hierarchy Process
10.1520/E1699-14R20.
2
(AHP) to Multiattribute Decision Analysis of Investments
Projects also include analytical studies that provide the technical basis for
standards development or identify alternative means for achieving organizational
Related to Projects, Products, and Processes
objectives and research and development activities that support the deployment of
new products and processes.
3 4
Typical construction-related products for each product type are: (1) For referenced ASTM standards, visit the ASTM website, www.astm.org, or
components—structural steel members; (2) systems—fire protection systems such contact ASTM Customer Service at [email protected]. For Annual Book of ASTM
as sprinklers; and (3) equipment—motorized vehicles for excavation and Standards volume information, refer to the standard’s Document Summary page on
earthmoving, and transporting, lifting, and placing materials and components. the ASTM website.

Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States

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 E1699 − 14 (2020)
E2013 Practice for Constructing FAST Diagrams and Per- 5.3.1 During the earliest stages of design, refer to VE/VA as
forming Function Analysis During Value Analysis Study value planning. Use the procedure to analyze predesign
E2103/E2103M Classification for Bridge Elements— documents, for example, program documents and space plan-
UNIFORMAT II ning documents. At the predesign stage, perform VE/VA to
define the project’s functions, and to achieve consensus on the
3. Terminology project’s direction and approach by the project team, for
3.1 Definitions: For definitions of general terms related to example, the owner, the design professional,5 the user, and the
building construction used in this practice, refer to Terminol- construction manager. By participating in this early VE/VA
ogy E631; and for general terms related to building economics, exercise, members of the project team communicate their
refer to Terminology E833. needs to the other team members and identify those needs in
3.2 Definitions of Terms Specific to This Standard: the common language of functions. By expressing the project
3.2.1 value, n—An expression of the relationship between in these terms early in the design process, the project team
function and resources, where function is measured by the minimizes miscommunication and redesign, which are costly
performance requirements of the customer and resources are in both labor expenditures and schedule delays.
measured in cost for materials, labor, and time required to 5.3.2 Also perform VE/VA during schematic design (up to
accomplish that function. 15 % design completion), design development (up to 45 %
design completion), and construction documents (up to 100 %
3.2.2 value engineering (VE), n—The application of value
design completion). Conduct VE/VA studies at several stages
methodology to projects, products, and processes for the
of design completion to define or confirm project functions, to
purpose of achieving the essential functions at the lowest
verify technical and management approaches, to analyze se-
life-cycle cost consistent with the required performance,
lection of equipment and materials, and to assess the project’s
reliability, quality, and safety (syn. value analysis (VA)).
economics and technical feasibility. Perform VE/VA studies
3.2.3 value methodology, n—a systematic procedure used to concurrently with the user/owner’s design review schedules to
improve the value of a project/product/process by examining maintain the project schedule. Through the schematic design
its functions and resources using analytical, creative, and and design development stages, the VE/VA team analyzes the
evaluation techniques.
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3.2.3.1 Discussion—The procedure, normally conducted in
drawings and specifications from each technical discipline.
During the construction documents stage, the VE/VA team
a collaborative and multi-disciplined team workshop format,
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includes: (1) information phase; (2) function analysis phase;
(3) creative phase; (4) evaluation phase; (5) development
analyzes the design drawings and specifications, as well as the
details, and equipment selection, which are more clearly
defined at this later stage.
as the job plan. Document Preview
phase; and (6) presentation phase. The procedure is referred to 5.3.3 A VE/VA study performed at a 90 to 100 % design
completion stage, just prior to bidding, concentrates on eco-
nomics and technical feasibility. Consider methods of
4. Summary of Practice construction, phasing of construction, and procurement. The
ASTM E1699-14(2020)
4.1 This practice outlines the procedures for developing goals at this stage of design are to minimize construction costs
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alternatives to a proposed design that fulfill the needs and and the potential for claims; analyze management and admin-
requirements of the owner/user/stakeholder of the focus of istration; satisfy stakeholder needs; and review the design,
study. The practice shows how to identify the functions of the equipment, and materials used.
focus of study; develop alternatives to fulfill its functions; and 5.3.4 During construction, analyze value analysis change
evaluate the alternatives in their ability to satisfy defined proposals (VACP)/value engineering change proposals (VECP)
criteria. of the contractor.6 VACPs/VECPs reduce the cost or duration
of construction or present alternative methods of construction,
5. Significance and Use without reducing performance or acceptance. To encourage the
5.1 Use of this practice may increase performance in one or contractor to propose worthwhile VACPs/VECPs, the owner
more areas including: cost control; resource allocation; sched- and the contractor share the resultant savings when permitted
ule management; quality control; risk management; or safety. by contract.
Perform VE/VA as early as possible in the life cycle of the 5.4 Products:
focus of study, and anytime conditions change, to allow 5.4.1 Perform VE/VA during concept development to pro-
greatest flexibility and effectiveness of any recommended vide a mechanism to analyze the essential attributes and
changes. However, VE/VA may be performed at any time develop possible alternatives to offer the best value. Evaluate
during the planning, design, and implementation phases of a technical requirements of each alternative to determine effects
project, product, or process. on total performance and costs. Identify areas of high cost/
5.2 Most effective applications of VE/VA are early in the high-cost sensitivity and examine associated requirements in
design phase. Changes or redirection in the design can be
accommodated without extensive redesign at this point,
thereby saving the owner/user/stakeholder’s time and money. 5
This practice uses the term design professional to encompass the cognizant
technical authority for a project, product, or process.
5.3 Projects Related to the Construction of Buildings and 6
For federal contracts, VACP is referred to as Value Engineering Change
Other Engineered Systems: Proposal (VECP).

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 E1699 − 14 (2020)
relation to its contribution to effectiveness. Utilize VE/VA to 5.5.4 Encourage the contractor to propose worthwhile
constructively challenge the stated needs and recommend VACPs/VECPs that satisfy owner needs, where the owner and
alternatives and ensure that user requirements are well the contractor share the resultant savings when permitted by
founded. contract.
5.4.2 Perform VE/VA during preliminary design to analyze 5.6 The number and timing of VE/VA studies varies for
the relevance of each requirement and the specifications every focus of study. The owner/user/stakeholder, the design
derived from it. Critically examine the cost consequences of professional, and the value methodology expert determine the
requirements and specifications to determine whether the best approach jointly. A complex or expensive focus of study,
resultant cost is comparable to the worth gained. Further or a design that will be used repeatedly, warrants a minimum of
analyze high-cost, low performance or high risk functions and two VE/VA studies, performed before the design is developed
the identification of alternative ways of improving value. and during design development.
5.4.3 Perform VE/VA during detail design to identify indi-
vidual high-cost, low performance, or high risk areas to 6. VE/VA Team
facilitate early detection of unnecessary costs in time to take 6.1 The VE/VA Study Team Leader (VSTL) plays a key role
corrective action. Establish maintenance plans to ensure that in the success of a VE/VA study and is responsible for
the design process incorporates logistic requirements and cost managing all aspects of the effort. A VSTL needs training in
considerations, including reliability, maintainability, spares, VE/VA and experience as a team member, leader, or facilitator
and obsolescence. Analyze how suppliers can help reduce on previous studies. Seek a person with strong leadership,
costs. Look for opportunities to simplify the design for management, and communications skills.7
operational use—make the product easier to operate and
maintain. 6.2 The size and composition of the VE/VA team depends
5.4.4 Perform VE/VA during production to develop alterna- on the focus of study and the stage of completion being
tive designs to meet functional needs. Apply VE/VA to evaluate reviewed.
and improve manufacturing processes, methods, and materials. 6.3 If warranted, the VE/VA team should consider a separate
Leverage opportunities for VE/VA when: recent developments VE/VA Study Team Facilitator (VSTF). The role of the VSTF
iTeh Standards
indicate a potential opportunity for performance improvement
or cost reduction, or both; the future use of the product depends
is to assist the VSTL by leading each workshop session in
accordance with the overall VE/VA job plan.8

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on significant reduction in production costs; and new manu-
facturing technology or new materials become available.
6.4 Select persons of diverse backgrounds having a range of
expertise and experience that incorporates all the knowledge

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5.4.5 Perform VE/VA during operations to study the necessary to address the issues the VE/VA team is charged to
operation, maintenance, and other logistics functions. address.
5.4.6 Encourage the contractor to propose worthwhile
VACPs/VECPs that satisfy owner needs, where the owner and 6.5 Select technical disciplines for a VE/VA team that are
similar to the technical disciplines on the design team for the
the contractor share the resultant savings when ASTM E1699-14(2020)
permitted by
stage of completion being reviewed. Include professionals who
contract.
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are knowledgeable in the financing, cost, management,
5.5 Processes: procurement, implementation, and operation of similar
5.5.1 Perform VE/VA during process design to analyze the projects/products/processes.
value of each requirement and the process steps derived from
6.6 The focus of study owner decides whether to create the
it. Critically examine the cost consequences of requirements to
VE/VA team using people involved in the focus of study, that
determine whether the resultant cost is comparable to the
is, the owner/user/stakeholder, the planner, the design
performance gained. Further analyze high-cost functions and
professional, and the implementation manager (construction
the identification of alternative ways of achieving the same
manager, production manager, or process manager), or using
result with greater value (better performance, lower cost, or
professionals who have not been involved in the design and
both).
have no preconceived ideas.
5.5.2 Perform VE/VA during process implementation.
VE/VA challenges the need for data collection and test and use 6.7 The owner/user/stakeholder and the VSTL agree upon
cases. VE/VA supports the testing process by challenging the the team composition.
amount of fidelity needed and determining cost effective ways 6.8 Decisions reached from the standpoint of one discipline
of conducting tests. Look for opportunities to simplify the frequently have a major impact on the approach the designer
process design for operational use. will take for another discipline. Thus, the multidisciplinary
5.5.3 Perform VE/VA during process operations. Apply interaction is necessary. The collective knowledge and experi-
VE/VA to evaluate and improve process flow, increase process ence of the multidisciplinary team create the synergy that helps
throughput, and eliminate process bottlenecks. Leverage op- this procedure to be successful. The team is dynamic, marked
portunities for VE/VA when: recent organizational changes
indicate a potential opportunity for value improvement; initial 7
The VSTL should have qualifications equivalent to a SAVE International
incentives for process improvement or reduced cost, or both
(trademarked) Certified Value Specialist (CVS).
are no longer applicable; and new technology to improve 8
The VSTF should have qualifications equivalent to a SAVE International
productivity become available. (trademarked) Certified Value Specialist (CVS).

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 E1699 − 14 (2020)
by continuous productive activity which promotes positive 7.1.2.4 Evaluation phase.
change. Individual’s personalities are important to the success 7.1.2.5 Development phase.
of the VE/VA team, as well. Positive attitudes, technical 7.1.2.6 Presentation phase.
knowledge, education, and experience are important to the
7.1.3 Post-Workshop Effort:
outcome of the study.
7.1.3.1 Implementation phase.
6.9 Make final the team composition and level of participa-
tion after receiving the study documents and knowing specifi- 7.2 Pre-Workshop Preparation Effort:
cally what information is available for the Workshop Effort. 7.2.1 The VE/VA team prepares for the Workshop Effort to
ensure that events are coordinated; that appropriate information
7. Procedure is available for the VE/VA team to review; and that the design
7.1 A VE/VA study has three sequential periods of professional and implementation manager are prepared to
activity—Pre-Workshop Preparation Effort, Workshop Effort, present a description of the focus of study on the first day of the
and Post-Workshop Effort. Within these activities, the VE/VA workshop.
team follows a formal plan, as shown in Fig. 1, and as 7.2.2 The design professional is an integral part of the
described in the following: VE/VA process, whether the design professional participates
7.1.1 Pre-Workshop Preparation Effort. throughout the process, or becomes involved at specific mile-
7.1.2 Workshop Effort (Value Methodology): stones. The VE/VA team is only effective when it communi-
7.1.2.1 Information phase. cates with the design professional, the implementation man-
7.1.2.2 Function identification and analysis phase. ager and the owner/user/stakeholder, and presents alternatives
7.1.2.3 Creative phase. for their consideration.

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ASTM E1699-14(2020)
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FIG. 1 Value Engineering/Value Analysis Study Plan

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 E1699 − 14 (2020)
7.2.3 Preparing for the Workshop Effort, the VSTL coordi- 7.2.8.2 With information provided by the owner, implemen-
nates the VE/VA study schedule with the design professional tation manager, and the design professional from historical data
and the owner to accommodate their schedules. or projected life-cycle costs, the VSTL, or a knowledgeable
7.2.4 The VSTL, the owner, the design professional, and the team member designated by the VSTL, prepares a life-cycle
implementation manager, as appropriate, meet to discuss the cost model to display the total cost of ownership for the focus
scope of the workshop, the objectives of the workshop, and the of study (see Practice E917). The model identifies the high cost
constraints that have been imposed on the focus of study by the areas of ownership. The owner, implementation manager, and
user/owner/stakeholder or regulatory agencies. the design professional establish the interest or discount rate to
7.2.5 The owner, the design professional, and the imple- be used in the analysis. This rate is the same as that used by the
mentation manager, as appropriate, establish performance and design professional during the design process. The VE/VA
acceptance requirements for evaluating alternatives during the team assigns target life-cycle cost estimates during the Work-
evaluation phase of the Workshop Effort. Select these criteria shop Effort, if time is available and as deemed appropriate by
from items such as initial construction/manufacturing cost, the VSTL.
life-cycle cost, aesthetics, ease of operation and maintenance, 7.2.9 The VSTL distributes study information to the VE/VA
safety, and schedule adherence. team members who review the documents and prepare for the
7.2.6 The owner, the VSTL, the design professional, and the study.
implementation manager, as appropriate, determine the need 7.2.10 The VSTL prepares a sample format for a presenta-
for a site visit/product or process demonstration by one or more tion by the design professional at the beginning of the
team members and establish the schedule. If the Workshop Workshop Effort. Topics that the design professional addresses
Effort is not going to occur near the proposed site/ include, but are not limited to:
demonstration location, it is appropriate to schedule this effort Scope of the project/product/process team’s effort
prior to the workshop effort. Participating firms
7.2.7 The VSTL collects the focus of study material from Regulatory requirements
Basis of design
the design professional. Examples of information needed from Rationale and steps in the development of design
the design professional include, but are not limited to: Planning concepts
Owner’s design standards
Design criteria iTeh Standards Method of operation
Pertinent information from public participation
Constraints

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Project/product/process budget and cost estimates
Explanation of information provided by the project/product/process team
Design calculations
Summary of cost estimate
Alternatives considered
Implementation phasing
Technical memoranda, as appropriate
Maintenance requirements
Operations requirements Document Preview
Project/product/process schedules
7.2.11 The VSTL arranges the workshop logistics, accom-
modations and transportation for the VE/VA team members.
7.2.8 Using the most current, preliminary estimate pre- 7.2.12 Before the workshop, the VE/VA team members
sented by the people involved in the focus of study, ASTM familiarize
the E1699-14(2020)
VSTL themselves with the focus of study documents.
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develops the capital cost model, or other appropriate models, 7.3 Workshop Effort:
including but not limited to life-cycle cost models, energy 7.3.1 Information Phase:
models, scoping models, and risk and performance models, to 7.3.1.1 The design professionals or implementation
determine where high costs are expended.9 Display the esti- managers, or both, present the focus of study to the VE/VA
mated costs graphically on this cost model. The VE/VA team team. The team members use this opportunity to ask questions
will use this cost model during the Workshop Effort to assign arising from review of the study documents during the Pre-
target initial cost estimates for each function. Workshop Preparation Effort. Following the presentation, the
7.2.8.1 With information provided by the owner, implemen- VE/VA team or specific members visit the proposed site/
tation manager, and the design professional from historical data demonstration location, if appropriate, establish target costs for
or projected energy consumption the VSTL, or a knowledge- the cost, energy, life-cycle cost, and other appropriate models,
able team member designated by the VSTL, prepares an energy and begin the function identification and analysis.
model to display energy consumption for the focus of study. 7.3.1.2 Using the cost model that the VSTL prepared during
The model10 visually identifies energy intensive areas. Prepare the Pre-Workshop Preparation Effort, the VE/VA team devel-
an energy model for systems/subsystems/functional groupings ops target estimates for each system and subsystem or func-
that present a potential for high energy consumption. The tional grouping; and establishes these targets based on its
VE/VA team assigns target energy consumption estimates collective experience as the least cost necessary to perform the
during the Workshop Effort, if time is available and as deemed function. Areas that show a significant difference between the
appropriate by the VSTL. design professional’s cost estimate and the target estimate are
those which present opportunities for improvement.
7.3.1.3 In evaluating a project/product/process that presents
9
For construction-related applications, organize initial construction costs by a potential for high energy usage, the VE/VA team, as directed
element and trade to determine where high costs are expended (see Classifications
by the VSTL, develops target energy consumption estimates
E1557 and E2103/E2103M).
10
The model expresses energy in units of kwh per year or other appropriate for each system, subsystem or functional grouping using the
systems of measurement. energy model prepared during the Preparation Effort; and