Office of General Services

Use of Value Engineering (Follow-Up Review) (95-F-7)

OGS plans the construction and alteration of buildings for about 40 State agencies. Our prior audit report 92-S-78 examined the process used by OGS to minimize the cost of planning, constructing and operating these buildings and concluded that this cost could be significantly reduced if a process called value engineering were adopted. Value engineering is widely used by private industry, other state governments and the federal government; according to the professional literature, when value engineering is used, a project's estimated construction costs will be reduced by 5 to 25 percent. We recommended that OGS work with the State Division of the Budget to incorporate value engineering into the State's overall capital planning process. Our follow-up review found that OGS officials were in the process of trying to implement this recommendation. The officials also reported that value engineering had been used in the design of three projects with savings of $178,000 so far.

(This report is not avalible electronically you can request a printed copy via email.)