Impacts of Value Engineering Related Practices In Ethiopian Federal Road Projects

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In spite of the government‟s prior attention to development of infrastructure facilities such as roads, research indicates that the Ethiopian federal road construction sector still faces significant cost overrun, time overrun and performance problems thereby reducing the overall value of the road infrastructures. Management tools, such as value engineering, can result in the required and/or improved performance of a project at the lowest possible life-cycle cost and assure the greatest value for money being invested. Though research indicated that value engineering is not being applied in Ethiopian federal road projects, recently value engineering related practices are being observed in some projects. This study attempts to research the impacts of value engineering related practices in design and construction phases of federal road projects administered by the Ethiopian Roads Authority. A thorough literature review has been done to apprehend the concepts and techniques of value engineering as well as the global and national experiences. Cases of randomly selected 6 design projects and 6 construction projects have been analyzed. A survey questionnaire was also distributed to randomly selected consulting and construction firms working with the Ethiopian roads authority and the responses were analyzed. The analysis result indicates that the impact of the value engineering in the design service contracts is increasing the original design service contract amount and duration by 1% and 2% respectively. Whereas, the impact of value engineering practices on construction projects is observed to reduce time (or have no time implication) and reduce cost by 0.65% of the original contract amount or 0.51% of the final/estimated contract amount. Finally, it is recommended that the government should formulate an appropriate policy aimed at safeguarding better value for the money being spent in road construction industry, emphasis should be given to life-cycle costs of road projects, design projects should undergo value engineering study prior to floating a tender; and professional associations should promote value engineering through training and workshops.



Value engineering, Job Plan, Function analysis, Value Analysis, Value Methodology, Road construction