Value Engineering framework

The Framework for Value Engineering Reviews in Major Transport Infrastructure Projects establishes a consistent and structured approach for integrating Value Engineering (VE) across the project lifecycle. It strengthens decision-making by embedding systematic evaluation, functional analysis, and innovation in the planning, design, and delivery of major transport infrastructure.

• Framework for Value Engineering Reviews in Major Transport Infrastructure Projects
• Value Engineering Review Report Template

The Amendment Register summarises significant changes over time.

The below frequently asked questions are intended to support practitioners applying the Framework for Value Engineering Reviews in Major Infrastructure Projects.

General understanding

What is the purpose of VE in this guideline?

VE provides a structured, systematic process to optimise project value by improving function, performance, and outcomes while minimising whole-of-life cost, risk, and adverse consequences without compromising safety, quality, or reliability.

How does this guideline define 'value'?

Value is the balance between function, performance, and benefits relative to cost, risk, and consequences. Good value is achieved when essential functions are delivered at the lowest practical total life-cycle cost and risk.

Is VE only about cost cutting?

No. VE focuses on costs avoided, consequences mitigated, performance improvements, risk reduction, sustainability outcomes, and lifecycle optimisation - not just reducing capital cost.

When is VE mandatory versus optional?

VE reviews are mandated during the Planning, Concept, and Development phases. Strategic planning and post-construction VE reviews are optional but strongly encouraged where value can still be influenced.

Governance and roles

Who is responsible for overseeing the VE process?

Oversight is provided by the VE Review Panel, chaired by the Principal (or delegate), with senior discipline representatives and independent experts.

What is the role of the VE Facilitator?

The VE Facilitator is an independent professional responsible for leading workshops, ensuring methodological compliance, facilitating collaboration, and preparing VE documentation and reports.

Can project designers or constructors act as the VE Facilitator?

No. The Facilitator must be independent to ensure objective challenge, unbiased facilitation, and robust outcomes.

Timing and integration

Why is early VE engagement critical?

Early VE maximises influence over scope, design assumptions, and delivery strategies - where changes have the greatest impact on cost, risk, and performance.

Can VE still add value during detailed design?

Yes, but opportunities are typically narrower and focus on constructability, materials, methods, sequencing, and risk mitigation rather than strategic outcomes.

How does VE integrate with the project life cycle?

VE is embedded across planning, concept, development, and (optionally) post-construction phases, aligning with decision gateways and design maturity.

VE review process

What is meant by the 'Problem Addressing Phase'?

This phase challenges the fundamental purpose of the project by distinguishing needs from wants and clarifying non-negotiable versus negotiable requirements.

What information is critical in the Information Phase?

Key inputs include scope, cost estimates, risks, site investigations, design domain confirmation, Building Information Modelling / digital models, third-party requirements, and relevant network or benchmark projects.

What is Function Analysis and why is it important?

Function Analysis identifies what the project or component must do, distinguishing basic from secondary functions. It ensures solutions are aligned with purpose, not just tradition or precedent.

Are tools like FAST mandatory?

No, tools such as FAST diagrams are optional but recommended where they add clarity and rigour to function understanding.

How are ideas generated in the Creative Phase?

Ideas are generated through structured brainstorming that encourages free thinking, cross-disciplinary input, and innovation without early judgement.

How are VE ideas evaluated and shortlisted?

Ideas are assessed against feasibility, cost, lifecycle impact, performance, risk, and alignment with broader network outcomes, including interdependencies with other projects.

Cost, risk, and value assessment

What costs should be considered in a VE review?

VE considers a broad spectrum of costs including materials, overheads, professional services, traffic management, operations, maintenance, and end-of-life impacts.

How are risks treated in VE?

VE explicitly identifies, challenges, and tests key project risks and proposed mitigations to ensure risk responses are proportionate and value-adding.

How does VE support sustainability objectives?

VE supports sustainability through lifecycle cost analysis, emissions reduction, resource efficiency, and evaluation of alternative materials, methods, and delivery strategies.

Reporting and implementation

What must be included in a VE Report?

A VE Report includes function analysis outcomes, alternatives considered, cost and value impacts, risk considerations, and an implementation roadmap.

Does the VE Report require Registered Professional Engineer of Queensland (RPEQ) certification?

Not automatically. However, content may be subject to RPEQ certification if deemed professional engineering services and requested by the Principal.

How are VE recommendations approved?

Recommendations require endorsement by the Principal through established governance and change control processes.

How are VE outcomes tracked?

Outcomes are tracked through a VE Register, capturing decisions, estimated versus actual savings, and lessons learned.

Good practice and common pitfalls

What are common reasons VE reviews fail to add value?

Late engagement, poor-quality data, lack of multidisciplinary input, unclear objectives, and cultural resistance to challenge.

How can teams maximise VE effectiveness?

By engaging early, fostering open collaboration, clearly defining value objectives, using accurate data, and maintaining a mindset of continuous improvement.

Knowledge sharing

What happens to ideas that are not implemented?

Unimplemented ideas should be archived in a VE lessons learned database for potential future use on other projects.

How does VE contribute to organisational learning?

VE captures insights on cost drivers, risks, innovation, and delivery efficiency, strengthening future planning, design, and investment decisions.