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Development of Improved VE Subject Selection and Functional Analysis at Planning Phase for Program Level Chang-Taek Hyun, Ph.D., PE, AVS, Chang-Yeob Song, Myung-Jin Son, SeongMin Jo, & Seung-Won Han June 7, 2010

As some new issues such as urban redevelopment, urban balanced development, and urban competitiveness have become more important worldwide, the mixed-use developments of program level, which is, unlike the project-level, supposed to connect various individual projects, have been actively carried out. It is highly required that the program-level facilities with multiple projects and diverse stakeholders meet their original functions, create new values by maximizing the land efficiency and connecting different uses, and make OM&R(operation, maintenance, and replacement) more efficient. Therefore the research related to VE(value engineering) application for program-level facilities, which could support the value enhancement and the creative thinking, needs to be performed. In Korea, as for the construction projects which cost over ten million dollars, it is mandated to perform VE more than once respectively at both design development phase and construction document phase for cost reduction, function improvement, and value maximization. In the meantime, VE needs to be applied at the early stage such as planning phase, in order to get maximum effect for large-scaled program-level facilities. However, to do this, some problems have been raised as follows: 1) VE job plan oriented to single project and design phase, 2) Difficulty on VE subject selection according to the variety of functions and spaces in program-level facilities, 3) Lack of connection between VE subject selection and function analysis, and 4) Lack of consistency between VE subject selection and idea creation. Especially, VE subject selection has more important meaning on program-level facilities where multi-projects are closely connected. And the careful and efficient subject selection in program-level facilities could result in the great possibility of value improvement. To apply VE efficiently at the planning phase of large-scaled program-level facilities, this study tries to suggest the effective method for the subject selection. In addition, the connection process of the subject selection and the functional analysis, and the process to support the effective idea creation are to be proposed. Also the similarities and differences between 'a single project' and 'capital construction program with multiple projects' in terms of VE application, are presented.