Implementation of Value Engineering in Optimizing Project Cost for Sustainable Energy Infrastructure Asset Development

Abstract

The purpose of this study is to optimize costs by analyzing a case study of the Energy Utility Company (EUC) project in Malaysia and building the main electric distribution station (MEDS) project specifically. In order to achieve this objective, Value Engineering (VE) technique as one of the proven tools was selected, and three alternatives were applied. The first alternative was to reduce the room sizes of the building. The second alternative was to replace the plaster painting with normal painting, and the last one was to replace painting up to 1.5 meters with 1 meter of the high of walls from the floor. Results approved that the implementation of VE has successfully reduced the cost of the project without compromising the quality of the materials. For the first alternative, 17.1% of the cost was saved. Regarding the second alternative, 69.8% of the total cost for ceiling painting was saved, and for the third alternative, 41.6% of the total cost of walls from the floor was saved. The findings of this research may serve as a guide for engineers, scholars, and constructors to reduce the cost of the building project.