THE APPLICATION OF VALUE ENGINEERING ON PUBLIC CONSTRUCTION PROJECTS IN SAUDI ARABIA BY: Mohammad Ali Husain Al-Sughaiyer Supervised By: Dr. Saadi Assaf Date: June 1987 Summarized By: Omar A. Al-Dukhayyil

Outline  Objectives  Definition  Value Engineering in Saudi Arabia  Research Methodology  Results & Analysis  Recommendations  Conclusion

OBJECTIVES The objectives of this thesis are: To introduce value engineering concept. Finding out the extent of use of value engineering on public construction projects. Determining reasons and roadblocks for extending the use of value engineering in Saudi Arabia. Suggesting some ways to expand the use of value engineering in Saudi Arabia.

Value Engineering Is defined as an organized creative effort which analyzes the functions of the products or services for the purpose of achieving the required functions at the lowest possible cost without sacrificing quality, performance, and reliability.

Value Engineering in Saudi Arabia Mid-seventies (Ministry of Defense & Aviation)

RESEARCH METHODOLOGY Discussing the government development plans and the importance of value engineering concept, followed by discussing its process. Survey: –Government Agencies. –Consulting Firms. Results and analysis of the collected responses. Suggestions on expanding the use of value engineering in Saudi Arabia.

Results & Analysis Responses were divided into two groups: –Those who apply VE. (MODA) –Those who do not apply VE.

Results & Analysis -Those who do not apply VE: it was found the following: - Only 11.7% of the responses from government engineers understand VE very well. - Only 25.7% of the responses from consultant engineers understand VE very well % of the responses claimed that the main reason for not implementing VE technique is that the concept was not practically introduced to them % of the responses consulting firms claimed they had never been asked to conduct such a study for additional fee.

Recommendations Introduce the concept of value engineering to all government agencies. Enforce a government regulation. Value engineering should be conducted first for large construction projects. The implementation should be supported by the top management. Establish a value engineering society.

Conclusion –VE is a successful technique that has been tested in many countries. –VE can be applied at any stage of the project's development. –The most important reason for not applying VE in this country is that the concept is not very well known. –Government regulations through a government procurement system do not encourage the idea of VE. –There are no qualified personnel to apply this concept. –Top management's support is essential to introduce and operate a successful VE program in organizations.

Thank you