Based On The Full Life Cycle Value Engineering Project Investment

Value Engineering Theory (VET) originated from MILES. As a scientific method combining the economy and technology, the theory has been proved to be an effective means to improve products function and reduce cost. Meanwhile, it' s beneficial greatly to save expenditure and improve the value of projects. During the past half century, VET has been promoted and applied positively in United States and other countries and obtains the remarkable economic efficiency.Since 1970's, VET came to China and penetrated into many industries quickly. It has a significantly effect on industrial design. But the research and application of VET in Engineering Project has developed slowly. It's quite rare that Engineering Project researched verily systematically and applied Value Engineering. With the rapid development of China economy, more and more money are invested in Engineering. So how to control the investment project financing effectively and how to make valid financing exerted maximal benefit has caused wide public concern.In this paper, we expounded by using the theoretical research and case study. First of all, we discussed the significance of Value Engineering application basing on Life Cycle of the investment project, and described the status of VE and Life cycle cost applying in engineering projects in China and other countries. Then we studied the application of Value Engineering based on Value Engineering Theory and Life Cycle Costing Theory, and analyzed the signification and application of the value engineering based upon life cycle by case analyzing method.