Applying Risk Analysis, Value Engineering, and other Innovative Solutions for Project Delivery

Managing stakeholders and permitting agencies while addressing complex constructability and technical issues requires innovation and a culture that is open to change in order to deliver transportation projects “on time and within budget.” Project planners and decision makers need to understand the range of possible outcomes in a project and/or program to make intelligent decisions, and they also need effective tools and techniques to help guide those decisions. Within the transportation sector in general and the highway sector in particular, innovative strategies aimed at improving the reliability of project planning, development, and delivery include alternative delivery methods, risk-based cost and schedule estimating, value engineering, constructability reviews, and alternative technical concepts. Most of these strategies involve teams thinking differently, generating alternative solutions, estimating costs and benefits, and championing new ideas. All of these strategies involve risk transfer and assignment, but risk has not always been allocated in a logical or deliberative fashion. One significant approach to addressing these concerns is application of Value Engineering (VE), a systematic process that combines creative and analytical techniques to achieve a common understanding of project requirements, thus stimulating innovation and maximizing the use of resources to meet critical needs. At the project level, the goal of VE analysis is to achieve balance between project needs (e.g., quality, safety, operations, environment, etc.), and resources (cost, schedule, materials, etc.). VE follows a structured process that can be integrated effectively with other techniques to stimulate innovation and identify strategies for managing and allocating risk. Budget constraints, increasing project complexity and stakeholder involvement are driving an ongoing need to increase innovation in project development and delivery. A number of processes and tools contribute to stimulating innovation and thinking differently. As the demand for innovation and value for money increases, there is increasing need to identify and use the appropriate tools and processes effectively. The objective of this research is to develop a guide that identifies available and proposes additional tools and techniques to foster useable and improved practices for key stakeholders to combine risk analysis, constructability reviews, value engineering, and other processes for improving project outcomes.

Language

  • English

Project

  • Status: Completed
  • Funding: $200000
  • Contract Numbers:

    Project 19-11

  • Sponsor Organizations:

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590

    American Association of State Highway & Transportation Officials (AASHTO)

    444 North Capitol Street, NW, Suite 225
    Washington, DC  United States  20001

    National Cooperative Highway Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC  United States  20001
  • Project Managers:

    Goldstein, Lawrence

  • Performing Organizations:

    Value Management Strategies, Incorporated

    Escondido, CA  United States 
  • Principal Investigators:

    Stewart, Robert

  • Start Date: 20150825
  • Expected Completion Date: 0
  • Actual Completion Date: 20170113
  • Source Data: RiP Project 37540

Subject/Index Terms

Filing Info

  • Accession Number: 01543521
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 19-11
  • Files: TRB, RiP
  • Created Date: Nov 17 2014 1:01AM