The Application Of The Value Engineering In The Construction Industry

Economic development, in essence, is to provide a wide variety of products tosatisfy the unceasingly increasing demands of the people. As the main body ofeconomic activities, a corporation can never survive the intense competition, unless it keep on improving its products as well as bringing down the costs in the belief that customers should always be put above anything else. And Value Engineering, a scientific method which combines technology and economy, is undoubtedly a useful tool to help a corporation achievement such goals.At present, the technical competence of construction industry is at a relatively low level in general The backward means of production, the developing industrialization, the bad management together with the relatively weak technical basis, can hardly keep up with the thriving construction industry. Meanwhile, the new mechanism that meet the development of construction and enterprise VE innovation and craft technology development is yet to be developed and improved on. Corporations, whose creative power of value is far from enough, attach little importance to value, and are in desperate need of corresponding policies to ensure the creativity of value. These problems have become a great obstacle to the development of construction industry. So it's essential to popularize the application of Value Engineering to construction industry, which will help to improve the value of the products of corporations in construction industry, and contribute to the reformation to the value of traditional products. It can also play a role in helping cultivate the core competence of the corporations and promoting the continuous development of the society as well as the national economy.Since value Engineering is still in its infancy in our country, it hasn't been well-accepted by corporations in the construction industry; sometimes it's even misunderstood. Therefore it's necessary to make a general assessment of the activities of applying value Engineering on the basis of theory and practice so that the corporations in the construction industry can have a better understanding of value Engineering; then they can further apply it spontaneously and skillfully to create new value, thus forming in the construction industry an atmosphere to promote and apply value Engineering. And in this way can value Engineering be gradually accepted by the management, the proprietors and the contractors in the construction industry,which is vital for the corporations to increase their core competence.I begin this thesis with an analysis of the fact that the coming of anknowledge-based economy era will certainly bring about changes in the way in which economy develops and lead to the reorganization and updating of construction industry. Then combining these factors with the principal contradiction now facing the construction market, I point out the great impact and practical signification of promoting and applying value Engineering in the construction industry. I also illustrate the necessity of the study in theory. The thesis also contains an introduction to the origin and development of Value Engineering and its trends in the international construction industry, which can serve as a guide for our construction industry. by referring to the application of value Engineering to the different phases of construction, I foretell the great social and economic benefits Value Engineering will bring us, and introduce some programs and methods that can be adopted at different phases of the projects of construction. In addition, some potential directions of study in which value Engineering can be applied are mentioned in this thesis too.