05 DESIGN MANAGEMENT

Project Procedures – rev 1A (NOV 2009)

 PP-DM 01 to 12 Design Management

Reason for issue Status

IPP Issued for Planning/Procurement IFC Issued for Construction PFC Preliminary for Comment A Approved
IFD Issued for Concept Design IFE Issued for Detail Design D Design Approved C Construction Approved

IFR Issued for Review INF Issued for Information Z As Built CAN Cancelled

IFT Issued for Tender SUP Superseded X Issued Void

IFA Issued for Approval

REVISED TO INCORPORATE CURRENT June

1 IFR PFC A. Estrella
PROJECT MANAGEMENT PLAN 2009
INITIAL SUBMISSION May
0 IFR PFC A. Estrella
2008
REVISION REASON PREPARED
CHANGES STATUS DATE
NO. FOR ISSUE BY

Scope:
This procedure covers the process of design review starting at the point of issue of the design
brief to the Consultant and finishing at the point of approval of the design documents as ready
to be incorporated into an RFP for Construction Contract.

Contents:

DESCRIPTION DOCUMENT No. REV

01 Concept Design PM PP-DM-01-PM 1
02 Design review PM PP-DM-02-PM 1
03 Design stage checklist example PP-DM-03-EG 1
04 Design review comments Form PP-DM-04-FM 1
05 ISO Requirement for design review records PP-DM-05-RQ 1
06 Construction drawings review PM PP-DM-06-PM 1
07 Shop Drawing Review PM PP-DM-07-PM 1
08 Design field change PM PP-DM-08-PM 1
09 Design field change Form PP-DM-09-FM 1
10 Value Engineering PM PP-DM-10-PM 1
11 Implementation of Value Engineering PM PP-DM-11-PM 1
12 Contractors Value Engineering PM PP-DM-12-PM 1

KAFD APPROVAL

Design Management PP-DM 01 TO 12 Rev.1

Director, Real Estate Projects Project Director

(RIC) (Hill International)
CONCEPT DESIGN PROCEDURE

OWN PMC CONS Input / Output

Contracts Manager + Cost Consultant

KEY

Planning & Development Dept.

Project Controls Manager

P Perform S Start RA Review/assist

Design Consultant
Project Director
i Receive copy D Decide I Issue

X X X Attend meeting Optional

Design brief,
1. Owner's Representative prepares design brief, site location and location &
affection plan and special terms & conditions and send to PMC P affection plan,
terms &
conditions

2. PMC Contracts Manager issues RFP to a minimum of 3 preselected

design consultants. RFP includes as a minimum:
a. design brief
b. location & affection plan I RFP

c. special terms & conditions

d. request for model
e. request for construction cost estimate
ff. request for fee proposal
g. request for proposed Architect/Engineer team

3. Design Consultants carry out the concept design stage and submit
R P Initial Concept

4. Owner's Representative review the submittals and approve the

winning scheme. Comments & suggestions for improvement are D R
attached.

5. Contracts Manager & Cost Consultant negotiate with winning

P A
Consultant to finalise a Contract Agreement.

6. Contracts Manager issues Letter of Agreement to Design Consultant

with Instruction to proceed. I LOA

7. Design Consultant completes concept design taking into consideration

P
Owner's comments and resubmits.

Comments
8. Owner's Representative reviews and makes recommendation Final Concept
P
recommendation to Senior Management for final acceptance. design

9. Concept Design Accepted with any comments to be incorporated in

D
design development stages. Comments

Document No: PP-DM-01-PM Rev.1

DESIGN REVIEW PROCEDURE (UP TO RFP ISSUE)

OWN PMC CONS Input/Output

KEY

Owner's Representative

Construction Manager
P S R

Contracts Manager

Technical Manager
Perform Start Review

Design Consultant
Project Director
i Receive copy D Decide I Issue

X X X Attend meeting

1. Owner issues design brief to design consultant with copy to PMC Design brief
I
RFP to designer includes the design stages:
Concept Design
Schematic Design i
Advanced Preliminary & Detailed Designs
BOQ and Tender Documents
Construction drawings & specification

Design stage
2. Designer carries out design stage & submits i P submittal

3. PMC implement review for design stage: R P

a. Checklists nos. PP-DM-03-EG, to verify compliance
with RFP + instructions & changes issued by Owner.
(Note: Develop checklist in each case based on requirements in
the RFP & design variations)
b. Review comments form PP-DM-04-FM distibuted to PMC
specialists for comments outside scope of checklists above.

4. Owner carry out independent review at the discretion of Owner P

Project Director

5. PMC prepare design review report which consists of: Design review
R R R P report
Narrative + conclusions + completed checklists + summary of
specialist comments

6. PMC send design review report to designer with copy to Designer i

i

7. Design review meeting/s between PMC & Designer with Owner X X X X X X

participation to achieve an agreement

8. PMC draft minutes and obtain Owner approval before issuing R

R R R R P

9. PMC issue minutes of meeting along with a Instruction to Proceed i I i i i Meeting minutes
i
with incorporating comments

Design stage
10. Designer incorporates comments, completes sign-off and re-submits i P submittal

11. PMC makes recommendation and prepares draft approval letter

I P R
for Owner

12. Owner approves design stage D

13. Owner issues approval letter through PMC P I i Approval letter

14. Designer proceeds to next design stage

P
15. Repeat steps 2-12 until construction drawings & specification
are ready for RFP

For preparation of RFP for construction contract refer to the Procurement

section.

Document No: PP-DM-02-PM Rev.1

 DESIGN STAGE CHECKLIST
Contract No: Work Package No:

Stage 2 Review & Evaluation Required and provided = 9

Deliverables Check List Required and not provided = 8
Required and partially provided = ’
Note that the following check list provides a quantitative evaluation only of stage 2 design
deliverables. Not Applicable =

Preliminary Design Stage (3.2)

Architectural

Mechanical

Specialist
Structural

Electrical
Deliverable
Details Remarks

3.2.1 Scope of Preliminary Design Stage

[Link] Update the overall built area calculations and unit mix calculations to verify
that these meet the Employer’s business plan objectives for the Project Document 9

[Link] Provide technical specifications for wind tunnel program, Initiate primary
wind tunnel testing with the development of site-specific wind environment Document 8
and initial structural force balance testing
Example is based
[Link] Prepare final geotechnical engineering investigation, issue report and make
recommendations in respect thereof on a specific RFP Document 8
[Link] Provide preliminary design including framing and foundation plans and
typical details Document 9
[Link] Develop floor plans for each level and rooms and apartments layouts and
mixes for various floor plans to maximize area efficiency including indicative For finishes see [Link] &
AS 9 [Link]
furniture and proposed finishes
[Link] Develop exterior elevations / building sections to illustrate the scope of the For finishes see [Link] &
g , defining
design, g finishes and materials. AS 9 [Link]
[Link] Design layouts and coordinated indicative furniture plans for each floor
including public areas, i.e. front of house, reception, concierge areas, back
of house, kitchen storage and mechanical rooms, and ancillary rooms
AS 9 ’ 9
including but not limited to health club and restaurant and parking areas.

[Link] Design parking layouts with circulation, entry and exit ramping system in line
with local regulations. AS 9
[Link] Prepare schedule of preliminary finishes Principle finishes, see also
AS 9 [Link]
[Link] Prepare vertical transportation studies inc. all disciplines. See
Document 8 notes
[Link] Develop Preliminary layouts for cores and shafts AS 9 9 ’ ’
[Link] Prepare a preliminary design report, summarizing the design development,
preliminary design details, outline specification for submission to the Owner Document ’ ’ ’ ’
for his approval

3.2.2 Deliverables (The Preliminary Design Report shall include but not be limited to
the following deliverables)

3.2.3 Site Plan

[Link] Site plan of the Project within the project limits showing as necessary location
of all buildings, roads, major plant & service corridors, parking and 1 to 500 8 8 8
landscaping elements
[Link] Clear delineation of the Project limit lines 1 to 500 8 8 8
[Link] Site Sections to show overall relationship (Longitudinal and Transverse as
needed) 1 to 500 8

3.2.4 Building Plans

[Link] General arrangement architectural drawings (1:100) 9
[Link] Key sections and elevations, coordinated with plans (1:100 / 1:200) 9
[Link] Site plan (1:500) 8 8 8 inc. external services.

Page 1 of 4 Document No: PP-DM-03-EG Rev.1

 DESIGN STAGE CHECKLIST
Contract No: Work Package No:

Stage 2 Review & Evaluation Required and provided = 9

Deliverables Check List Required and not provided = 8
Required and partially provided = ’
Note that the following check list provides a quantitative evaluation only of stage 2 design
deliverables. Not Applicable =

Preliminary Design Stage (3.2)

Architectural

Mechanical

Specialist
Structural

Electrical
Deliverable
Details Remarks

[Link] Updated accommodation, offices, retail and building amenity schedule with
areas Document 9
[Link] List of specialized equipment and systems with bulk MEP loads Document ’ ’ See item [Link]
[Link] Building Services (MEP) scheme report with key schematic drawings Doc / Dwgs 9 ’ Some missing
[Link] Structural scheme report with Gas (1:100) and sections (1:200), showing
primary members (1:100 / 1:200) 8 Gas = GA's

[Link] Updated Building services (MEP) Conceptual Work Statement and Basis of
Design Document Document 9 ’
[Link] Updated Structural Conceptual Work Statement and Basis of Design
Document Document 8
[Link] Vertical Transportation Study inc. all necessary info from
Document 8 various disciplines
[Link] Acoustic report Document 8 8 8
[Link] Waste disposal study Document 8 8 8
[Link] Fire / life safety report See also items [Link], 16 &
Document 8 30. See notes
[Link] Loading Docks AS 8
[Link] Food Service AS No central food service
[Link] Bridge Connecting Car Park Structure to Building - Plan & Sections AS 9 8
[Link] Conceptual Interior Design for all public spaces AS 9

3.2.5 Building Sections

[Link] Building Sections to show all relevant conditions including vertical
transportation and adjacent conditions 1 to 200 ’ Not 1:200

[Link] Preliminary details of exterior materials AS 8

3.2.6 Building Elevations

[Link] All major elevations with extent of cladding glazing and mullion spacing 1 to 200 Incorrect scales, not all
indicated with outline specifications notes ’ 9
1 to 100 elevations

3.2.7 Structural: Scales vary

[Link] Structural system description (with alternates, if applicable), AS 9
[Link] Typical floor and roof framing plans AS 9
[Link] Typical member sizes noted AS ’
[Link] Lateral load system noted AS 8
[Link] Design criteria to include fire safety issues
AS 8 etc.
[Link] Details of any special conditions (large spans, trusses, cantilevers, etc.) AS 8
[Link] Preliminary framing and foundation plans indicating member sizes, slab
thicknesses AS ’
[Link] Typical sketch details of structural elements AS 8

3.2.8 Preliminary Design Report shall also include the following

[Link] Introduction Document 8 8 9 8
[Link] Executive Summary: Architectural, structural, MEP, Landscape and interior
design. Document 8 8 9 8
[Link] Project Description Document 8 8 9 8 Generally not adequate
[Link] Architectural design description Document 8

Page 2 of 4 Document No: PP-DM-03-EG Rev.1

 DESIGN STAGE CHECKLIST
Contract No: Work Package No:

Stage 2 Review & Evaluation Required and provided = 9

Deliverables Check List Required and not provided = 8
Required and partially provided = ’
Note that the following check list provides a quantitative evaluation only of stage 2 design
deliverables. Not Applicable =

Preliminary Design Stage (3.2)

Architectural

Mechanical

Specialist
Structural

Electrical
Deliverable
Details Remarks

[Link] Structural design description Document 8

[Link] Interior design description Document 8
[Link] MEP design description Document 9 ’
[Link] Code Report/Preliminary Fire & Life Safety Report
See also items [Link],
Document 8 [Link] & 30. All disciplines

[Link] Area Summary / Area Schedule Document 9

[Link] Project Design Programme Not updated from
Document ’ ’ ’ ’ Concept stage.
[Link] Outline Specifications for all disciplines Document 8 8 9 ’
[Link] Preliminary Finishes Schedule
Document 9 Principle finishes, all areas.

[Link] Structural Narrative and System Diagrams Document 8

[Link] Vertical Transportation analysis inc. all necessary info from
Document 8 various disciplines
[Link] Update Concept Design perspective renderings as required / prepare a brief
inquiry specifications for preparation of a scale model Drwgs & Docs 9 9
[Link] Life safety strategy and applicable code analysis See also items [Link],
Document 8 [Link] & 30 + notes
[Link] Prepare Report on wind tunnel tests. Document 8 8 Test data not available
[Link] Provide a preliminary cost estimate of the Construction Document 8 8 8 8 See notes.
[Link] Preliminary shaft sizes, plant room locations 1 to 100 9 8 9
[Link] Distribution diagrams with overall duct sizes for mechanical ventilation
systems 1 to 100 9
[Link] Preliminary layouts for electrical, plumbing, hydraulic and fire protection pipe
work 1 to 100 9 9
[Link] Preliminary Exterior Lighting Design 1 to 500 ’
[Link] MEP Outline Specifications Document 9 ’
[Link] Cost benefit Study & recommendations for connecting to District Cooling
System Outline Drawings Document 8
[Link] Building Services (MEP) Scheme Report with Key Schematic Drawings Document 9 9
[Link] List of Specialized Equipment with Bulk MEP Loads Document ’ ’ inc loads / unit area
[Link] Updated Building Services (MEP) Conceptual Work Statement and Basis of
Design Document Document 9 ’
[Link] Acoustic Report Document 8 inc. all discipline input
[Link] Waste Disposal Study Document 8
[Link] Fire / Life Safety Report See also items [Link],
Document 8 [Link] & 16. See notes
[Link] Preparation of tender briefs for preparation of an Aeronautical Survey and
Traffic Analysis and Traffic Impact Study by others Drwgs & Docs 8
[Link] Analysis of Aeronautical Survey and Traffic Analysis and Traffic Impact Study
reports (reports by others) and preparation of a recommendation to the Drwgs & Docs 8
Project Manager
[Link] Project Narrative including outline specifications for all plant materials and For finishes see [Link] &
finishes used including irrigation requirement. Document ’ ’ [Link]
[Link] Detailed Area Schedule clearly describing non-leasable areas and defining
the achieved building efficiency level Document 9

Page 3 of 4 Document No: PP-DM-03-EG Rev.1

 DESIGN STAGE CHECKLIST
Contract No: Work Package No:

Stage 2 Review & Evaluation Required and provided = 9

Deliverables Check List Required and not provided = 8
Required and partially provided = ’
Note that the following check list provides a quantitative evaluation only of stage 2 design
deliverables. Not Applicable =

Preliminary Design Stage (3.2)

Architectural

Mechanical

Specialist
Structural

Electrical
Deliverable
Details Remarks

3.2.9 Preliminary Landscape Design

[Link] Preliminary Landscape Design 1 to 200 9
[Link] General Arrangement Plan as required A1 9 8 8
[Link] Hard Landscape Design Guides / Detail Areas as required A1 ’
[Link] Soft Landscape Layout / Details as required A1 ’
[Link] Landscape Sections as required A1 ’
[Link] Outline specifications for all plant materials and finishes used including For finishes see [Link] &
irrigation requirements. Document 8 8 8 [Link]

Notes:
1. The report does not contain a Fire / Life Safety Report covering all aspects of building Fire / Life Safety issues and across all disciplines. It should be
noted however that this requirement is partially satisfied by the submission of Mechanical & Electrical Fire Protection / Fire Alarm & Detection system
details.
2. Vertical transportantion report and analysis to incorporate all related, discipline specific issues.
3. Construction cost estimate not provided at this design stage.

Page 4 of 4 Document No: PP-DM-03-EG Rev.1

 DOCUMENT REVIEW FORM
Contract No: Work Package No:

Submittal Ref. No: [Link].: DR No.:

Submittal Date: DR Date: DD/MMM/YYYY
Submittal Title:

Review/Comments:

THIS FORM WILL BE ATTACHED BY THE REVIEWER TO THE SUBMITTAL FORM DURING THE
SUBMITTAL REVIEW PROCESS.

Result of Review:

Signature:
Name Date: DD/MMM/YYYY
Job Title / Company

Document No: PP-DM-04-FM Rev.1

 ISO REQUIREMENTS FOR DESIGN REVIEW RECORDS

If design management is part of PMC scope the following sets of records are required to be produced
and maintained.

1. Records of input to design including (as a minimum):-

a. Functional & performance requirements

b. Applicable statutory & regulatory requirements
c. Information derived from previous similar designs (if applicable)
d. Other essential requirements

These inputs shall be reviewed for compatibility, and adequacy.

2. Stage reviews

Records of design reviews at pre-planned stages to

a. Evaluate the ability of the design to meet the requirements
b. Identification of any problems and proposed actions

3. Design Verification

Records that verification that the design outputs have met the design input requirements.

4. Design Validation

Confirmation that the final design is capable of meeting the specified requirements and its
intended use.

5. Records of Design Changes

All design changes shall be recorded, reviewed, verified and validated. Records are to be
maintained.

Document No: PP-DM-05-RQ Rev.1

CONSTRUCTION DRAWING REVIEW PROCEDURE

OWN PMC RE CONS CONT Input/Output

KEY

Owner's Representative

Construction Manager

Document Controller
P S R

Technical Manager
Perform Start Review

Design Consultant
Resident Engineer
Project Director

Contractor
i Receive copy D Decide I Issue

X X X Attend meeting

1. Design consultant issues Construction Drawings to PMC for review I Construction

Drawings
Issued with Submittal and as per agreed Milestone Schedule

2. PMC Document Controller logs in drawings into Contract Manager P

i
and issues to Technical Manager for review

3. PMC Technical Manager & team review Construction Drawings for:

R P
a. coordination between drawings
b. all previous comments / changes have been incorporated
c. correctness of comments on drawings
d. completeness against specifications, reports, drawings, finishing
boards, and calculations as per the RFP.

4. PMC Technical Manager & team compile & issue comments on form P

PP DM 04 FM along with Design Review Report to Design Consultant

PP-DM-04-FM Design Review
i P i Comments &
with a copy to Owner through document control.
Report

5. Design Review workshop meeting/s between PMC & Designer with X X X X

Owner participation to achieve approved Construction Drawings

6. PMC draft minutes and obtain Owner's approval before issuing on

Form no PP-MT-03-FM R R P R

7. PMC issue minutes of meeting as Instruction to Proceed with

Meeting minutes
incorprporating comments i i I i

8. Design Consultant incorporates comments, completes & sign-off Construction

P Drawing submittal
Construction Drawings and re-submits to PMC for issue to Contractor

9. Repeat steps 2-8 until Construction drawings are ready for issue to
the Contractor

Construction
8. PMC issues Construction Drawings (signed & stamp by Design
i R P i Drawing Issue
i
Consultant) via a Transmittal to the Contractor and Resident Engineer

Document No: PP-DM-06-PM Rev.1

SHOP DRAWING REVIEW PROCEDURE

OWN PM/CM CONS CONT Input / Output

Rayadah Investment Company (RIC)

KEY

Supervision Consultant
P Perform A Assist R Review

PM / CM TEAM
Receive copy D Decide I Issue

Contractor
i

X X X X X Attend meeting Optional

1. The Engineering Submittals' Schedule (connected to high level

i R A I Eng. Submittals
construction schedule) to be issued to the CM for review & approval Schedule

2. The CM to create Submittal Packages in Contract Manager P Submittal Pckgs

(Expedition) in line with the approved design schedule

3. After approval of the design schedule, the Contractor to upload all

submittals information in Expedition with due dates using "Unsubmitted"
D P
status
status.

4. The CM receives the submittal with Hard & Soft copy (No. as
indicated in the contract) and:
₋ Check Conformity with the requirement and stamp for receipt R P Submittal
₋ Update information in Expedition (Status, date, BIC…etc.)
₋ Check uploading of soft copy on Expedition
II
₋ Alert Design Manager through Expedition P
I ₋ Send copies to Supervision Consultant for review
I
II ₋ Determine if needed to be reviewed by the Owner R

4. Supervision Consultant reviews Submittal (which are attached in P

Primavera Contract Manager), comments on it and sends it back to P
the Owner with action code (A, B, C, D or E)

5. The CM updates information in Expedition and forwards submittal

Submittal with
to the Design-Build Contractor. I Action

6. The Contractor to scan the submittal and attached it on Expedition

respective location.
P

7. Archive Hard Copy / Soft copy repository P P

Document No: PP-DM-07-PM Rev.1

DESIGN FIELD CHANGE PROCEDURE

OWN PM/CM TEAM RE CONS CONT Input / Output

KEY

Owner's Representative

Supervision Engineer
Concerned Manager
P S R

Technical Manager
Perform Start Review

Design Consultant

Project Manager
QA/QC Manager
i Receive copy D Decide I Issue

X X X Attend meeting Optional

The Contractor may request a Design Field Change to alter the design
due to on site conditions or product availablity. This request is to be used
only when immediate approval is required and there are NO COST or
TIME related implications

1. The process is initiated by the Contractor completing form PP-DM-09-FM

giving the existing condition, reason for the change and a Design Field
I Change Form
description of the change, plus evidence that a full review has No………...

has been carried out internally. Contractor then forwards this form to the
to the Supervision Engineer.

2. The Supervision Engineer reviews with comments, signs and

P
forwards to PM/CM

3. PM/CM Concerned Manager receives & distributes to Design Consultant &

internally to other departments (Design, QA/QC, MEP/Structural Eng. etc) for P
ifor comment & logs g Design
g Field Change
g in to system
y
R R R

Completed Design
4. On reciept of all comments, concerned Project Manager completes form P Field Change
PP-DM-04-FM and makes recommendation and attaching all comments to Form
No………….
Supervision Engineer

5. Supervision Engineer issues response to contractor with copy to PM/CM

I
and Design Consultant
i i

6. If approved Contractor procedes taking into consideration of all comments

P

7. PM/CM concerned manager notifies Owner and distributes to P

internal staff

i i

Document No: PP-DM-08-PM Rev.1

 DESIGN FIELD CHANGE (DFC)

Contract No: Work Package No:

Contractor: DFC No.: Rev.

Engineer: Date:

REFERENCE DOCUMENT No: Rev No: Remarks

EXISTING CONDITION:

REASON FOR CHANGE:

DESCRIPTION OF CHANGE:

CONTRACTOR’S REVIEW
FUNCTION: ORIGINATOR DEPT HEAD QA/QC REVIEW ENGINEERING MANAGER
NAME:
SIGNATURE:
DATE:

PM/CM & SUPERVISION ENGINEER’S COMMENTS /APPROVAL

(ANY APPROVAL AND/OR COMMENT SHALL NOT RELIEVE THE CONTRACTOR OF HIS OBLIGATIONS AS STIPULATED IN THE
CONTRACT DOCUMENTS)

This Design Field Change is: ACCEPTED □ REJECTED □

Remarks:
……………………………………………………………………………………………………….
……………………………………………………………………………………………………….
……………………………………………………………………………………………………….
……………………………………………………………………………………………………….

SUPERVISION ENGINEER DATE PROJECT MANAGER DATE

To be used only when the changes requested need immediate approval and carry
NO COST and/or TIME related implications

Document No: PP-DM-09-FM Rev.1

VALUE ENGINEERING PROCEDURE (Initiated by the Owner)

OWN PMC CONS Input/Output

Consultant & Design Team

Technical Manager & team
KEY

Owner's Representative
P Perform S Start R Review

Project Director
i Receive copy D Decide I Issue

X X X Attend meeting Optional

This procedure covers the process of Value Engineering requested by the Owner during design stages and throughout the life of the
project. Value Engineering looks for alternatives to the original design that might effectively increase the value and/or reduce the cost of the
project.
Value Engineering consists of six distinct phases
1 Information Phase 4. Evaluation Phase
2 Functional Analysis Phase 5. Development Phase
3 Creative Phase 6. Presentation Phase

INFORMATION PHASE - DAY 1-3

I
1 During the Information Phase, the PMC Technical Manager & team shall solicit comments on the technical and cost data to develop an overall
understanding of the project's functions and requirements. The Consultant will provide most of this data, including cost models to PMC Technical
i
Manager & team for review prior to a workshop.

2 PMC Technical Manager calls a workshop to be attended by the Design Consultants, and PMC team members P

3 The workshop, chaired by the Design Consultant, is to provide the PMC Technical Manager & team with an understanding & appreciation of
the factors that have influenced the project design. It identifies the difficulties that have been encountered during the design. The Design X X
Consultant shall present the description of the rationale, evolution, constraints, assumptions and alternatives for the major design criteria
and components. The Design Consultant shall designate a contract person to answer any questions and shall designate a contract person
to answer any questions
FUNCTIONAL ANALYSIS PHASE - DAY 4
4 PMC Technical Manager & team carries out functional analysis to separate Value Engineering from direct cost reduction techniques. The
functional analysis approach arrives at the basic purpose of the various systems and subsystems and aids in determining the least cost to P
perform the basic and secondary function, and identifies the costs that can be reduced or eliminated without affecting the performance or
reliabilty of the function.
Functional Analysis shall be completed as follows:
a. Identify the study area
b. Identify the basic function(s) of the study area
c. List the component parts of the study area
d. List the function of each component and sub component
e. Identify whether each function is basic , secondary or required secondary function
f. Identify the estimated construction cost of each function
g. Specu
g Speculate
ate oon tthe
e worth
o t or
o the
t e least
east cost to acco
accomplish
p s tthe
e sa
same
e function
u ct o
CREATIVE PHASE - DAY 5
5 PMC Technical Manager & team uses the Creative Phase to identify alternative ideas for accomplishing the function of the systems or subsystem P
associated with the specific study area. The ideas shall be listed by system, subsystem and component to faciltate effective organisation of the
study.
EVALUATION PHASE - DAY 6
6 PMC Technical Manager & team evaluates the feasibilty of each idea developed in the Creative Phase by identifying its advantages &
disadvantages. The ideas are the rated on a scale of 1 to 5. 5 presents a good or excellent idea with the potential for cost saving and value P
improvement. The ideas with highest ratings are selected for a more detailed level of development in the Development Phase
In rate ideas the PMC Technical Manager & team shall consider the folowing:
a. Are the aesthetic, performance , quality and reliabilty requirements met or exceeded?
b. Will excessive redesign or project delay be created?
c. Is there an improvement in operation & maintenance?
d. Will life cycle cost saving be achieved?
e. Does the idea have a reasonable chance of acceptance & implementation?

DEVELOPMENT PHASE - DAY 7

7 PMC Technical Manager & team develop the ideas from the Evaluation Phase into workable Value Engineering Proposals. The team research P
and develop alternative design proposals & life cycle cost comparisions for the original design and proposed alternative idea.
Development of an idea into a VE proposal shall include the following steps:
a. Describe the original design and the alternative idea
b. Sketch the original design & the alternative idea
c. Discuss the advantages & disadvantages of the alternative idea, including its impact on life cycle costs & other key facility issues.
d. Prepare a cost estimate and life cycle cost analysis , if necessary, for the original & alternative idea
e. Recommend the preferred approach as a VE Proposal. Each alternative idea shall be presented as a single VE Proposal
PRESENTATION PHASE - DAY 8 Draft
P Summary VE
8 PMC Technical Manager shall have a presentation of an overview of the VE Study and a summary of the VE Proposals including the potential Report

total cost saving, followed by a brief description of the VE Proposals highlighting the three best proposals for each discipline. A draft
summary of the VE Proposals shall be provided to the Design Consultant, Owner and PMC Project Director so they can start their review & X X X X
analysis prior to receipt of the Value Engineering Report
VALUE ENGINEERING REPORT
9 PMC Technical Manager shall prepare a written report summarising the results of the entire VE Study. The report shall be prepared and
submitted within one week following the presentation and contain the following: P
a. Project name and general description and summary of function
b. Scope of Value Engineering Study
c. Names of Owner, Design Consultant, PMC Design Team, PMC representatives
d. Location and date of the Workshop I VE Report

e. List of the data provided by the Design Consultant

f. Project objectives and constraints
g. All cost, energy and life cycle models and worksheets from the phases i i i
h. Summary of the VE Proposals and cost savings
i. Specific VE Proposals with supporting documentation
The report is to be issued to Owner, PMC Senior Management, and the Design Consultant for review and comment (5 copies)
FOR IMPLEMENTATION OF VALUE ENGINEERING REFER TO PROCEDURE PP-DM-11-PM

Document No: PP-DM-10-PM Rev.1

 IMPLEMENTATION OF VALUE ENGINEERING PROCEDURE

OWN PMC CONS CONT Output

KEY

Technical Manager & team

Owner's Representative
P

Contracts Manager
Perform S Start R Review

Design Consultant
Project Director

Contractor
i Receive copy D Decide I Issue

X X X Attend meeting Optional

This procedure covers the process of implementation of Value Engineering Proposals resulting
from the Value Engineering Studies (Procedure PP-DM-10-PM & PP-DM-12-PM )
Contractual issues arising from any Value Engineering should be resovled with reference to
Clause 13.2 of the Conditions of Contract for Construction, FIDIC 1999

1 After receipt of the Value Engineering Proposals, PMC Project Director call a meeting between all P
concerned parties. The purpose of the meeting is to discuss the advantages and disadvantages of each
VE Proposal

2 The meeting is held and chair by PMC Project Director, and the attendees develop a preliminary list of
VE Proposals which can be adopted immediately and those which will be implemented if the X X X X X X
proposals prove to be feasible

List of adopted
3 PMC Project Director organises the minute of the meeting and issues the lists to all concerned parties I VE Proposals &
MOM

i i i i i

4 The Design Consultant, conducts a detailed review of these Value Engineering Proposals to confirm
P
technical feasibility, cost to redesign, cost savings. The VE Proposals which are rejected by the Design
Consultant shall be fully documented with a technical analysis to explain reasons for rejection.

5 The Design Consultant presents the results of his feasibility study in report form to all concerned parties, Report of
including
c ud g aall deta
detailes
es o
of tthe
e rejected
ejected VE Proposals,
oposa s, for
o review.
e e I Feasibility of
VE Proposals

R R R R

6 After consulting with PMC Project Director, Contracts Manager and Technical Manager, Owner's
Representative identifies which VE Proposals appear to be most suitable for imlementation and P
forwards recommendation to Owner's Senior Management

7 Owner Executive Projects Director reviews & recommends to Owner's Senior Management
R

8 Owner's Senior Management approve or reject

D Rejected

9 Senior Management notifies Project Director of approval of VE Proposal & New Budget
I

10 Owner's Representative instructs Controls Manager to incorporate new budget into system and instructs GO TO VARIATION
Design Consultant to incorporate approved VE Proposals, and PMC to raise Variation Order Proposal P ORDER i i
for both Design Consultant and Contractor (refer to PP-VR-01-PM or PP-VR-02-PM, PP-VR-09-PM) PROCEDURES

11 Owner's Project Controls Manager Incorporate New Budget into project and informs Finiancial Revised
Department to update the budget. P Project
Budget

12 Owner's Project Controls Manager notifies PMC if the Project Director decides P

Document No: PP-DM-11-PM Rev.1

 VALUE ENGINEERING PROCEDURE (Initiated by the Contractor)

OWN PM / CM CONS CONT Input/Output

Supervision / Design Consultants

KEY

Owner's Representative

Construction Manager
P Perform S Start R Review

Contractor
i Receive copy D Decide I Issue

X X X Attend meeting Optional

This procedure covers the process of Value Engineering proposals issued by the Contractor
S
during course of the construction phase of the project. Value Engineering looks for
alternatives to the original design that might effectively increase the value and/or reduce the
cost of the project.
No Value Engineering Proposal(s) should be implimented until an Approved Variation(s) has
been issued by The Owner

1 The Contractor may at any time, carry out Value Engineering, which will P
(1) Accelerate completion
(2) Reduce the cost to the Owner of executing, maintaining or operating of the Work
(3) Improve the efficiency or value to the Owner of the Completed Works
(4) otherwise be of benefit to the Owner

2 The Contractor submits the Value Engineering Proposal (at his own cost) to the Engineer , P
ensuring the following are incorporated in the Contract Clause
a. A description of the proposed work to be perfromed and a programme for its execution
b. A proposal for any necessary modifications to the Contractor's programme and to the
Time for Completion
i i i I VE Report
c
c. The proposal for evaluation of the Variation with copies to PM/CM and Design Consultant
Consultant.

The report is to be issued to Owner, PM/CM Senior Management, and Design Consultant
for review and comment (5 copies)

3 Owner Engineer, PM/CM and Design Consultancy shall review each proposal
R R R

4 Engineer request PM/CM to call a meeting between all concerned parties. The purpose of the
meeting is to discuss the advantages and disadvantages of each VE Proposal.
D P

5 Follow procedure for the Implementation of Value Engineering (refer to in Procedure PP-DM-11-
PM)

GO TO IMPLEMENTATION
OF VALUE ENGINEERING
PROCEDURES

FOR IMPLEMENTATION OF VALUE ENGINEERING REFER TO PROCEDURE PP-DM-11-PM

Document No: PP-DM-12-PM

PP DM 12 PM Rev
Rev.0
0