View Tower Final VE Report

VALUE ENGINEERING REPORT
For
VIEW TOWER
Riyadh, Saudi Arabia
VALUE ENGINEERING STUDY

Design Development
December 24 - 26, 2007
OTAISHAN GROUP
VALUE MANAGEMENT
In association with
SBCM
Saudi Building & Construction Management
Prepared by:
D
Drr.. K
Khhaalleedd O
Obbeeiidd,, P
PEE,, C
CVVSS -- L
Liiffee
Director of Value Management
Phone: (01) 465-2841 \ Fax: (01) 465-1341
Mobile: 0553666027
Email: obeidk@otaishan.com.sa
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Design Development
TABLE OF CONTENTS
SECTION DESCRIPTION
Executive Summary
1 Facility Economics
Otaishan Group Value Engineering Program

VE Workshop Team Assignment (Figure 1-1)
VE Attendee List (Figure 1-2)
Value Engineering Agenda (Figure 1-3)
VE Implementation Schedule of Activities (Figure 1-4)
2 Project Description
General
Project Budget/Cost Summary
Selected Drawings
3 Value Enhancement Procedures
General
Pre-Study Preparation
Cost Model
Function Cost/ Worth Model
Quality Model
Risk Model
Economic Factors
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VE Study Workshop
Information Phase
Function Phase
Creativity Phase
Evaluation Phase
Recommendation Phase
Post Study/Implementation Procedures
VE Task Flow Activity

Function Analysis Worksheets
VE Idea Listing/Ranking Worksheets
4 Summary of Recommendations
General
Summary of Potential Cost Savings
VE Proposals
Architectural
Mechanical
Electrical
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EXECUTIVE SUMMARY
ABDUL MOHSEN BIN TURKY BIN AHMED AL-SUDAIRY has foreseen the need to
expand his business to meet the Saudi market demand of business offices in Riyadh,
Saudi Arabia. Based on the feasibility study conducted and the market condition He
decided to construct the VIEW TOWER Business Center on King Fahad Road on a site
that has wonderful development potential utilizing the state of the art technology in
architectural and engineering systems.
The project is an 8 story tower building including 8 floors of offices and support spaces, in
addition to three basements as a parking garage, ground floor, mezzanine and penthouse
on roof. The VIEW TOWER was commissioned by ABDUL MOHSEN BIN TURKY BIN
AHMED AL SUDAIRY for Construction and development in 2006, presents a unique
opportunity to develop an iconic state of the art building on a site which has excellent
development characteristics potential as selected site for this project in Riyadh City
namely:
• Up market location in an area developing as one of Riyadh’s premiere real estate

value.
• Location near to major Riyadh Hotels, affording the opportunity to capitalize on
business visitors.
• Well served by major traffic arteries being
1. on the King Fahad Road
2. Bordered by the Makka Road
This ensures the site is adequately served by roads to ensure good traffic flow to the
building. This should cater for the traffic loads which will be generated by the anticipated
members of office owners and their staff. From inception, it has been clear that the
building is to be designed to have its floor space be rented to individual owner occupiers.
Accordingly the professional team is aware that all design criteria must be structured to
fairly and correctly apportion operating costs. Additionally, as the project develops, selling
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modules and strategies will be fine tuned and serving requirements to these modules
clearly defined.
The total site area is 2,508m2 which will accommodate the Multi Story Tower and Parking
associated parking basements required. The total gross build up area of this project
excluding basements parking area of 7,500 m2 approximately is 16,301m2 while total
usable office area is 11,347m2 which results in building space efficiency of 70%. The
total estimated construction cost as prepared by the SBCM is 48,000,000 Million Saudi
Riyals including contingencies, escalation and preliminaries costs approximately as
detailed in the updated estimate/ BOQ unit prices that was available during this workshop
for this value engineering study conducted on this project.
The task of the value engineering team for this project includes conducting a 3 days (24
hours) Value Engineering (VE) workshop following SAVE International job plan. This VE
study was conducted on this project at its current final design document stage without
studying the structural systems due to project construction and start working on the
foundation and the structural system in the field. This constitutes a big challenge to the
Value Engineering team and limits the proposals to those which do not impact the
construction schedule or create any major change in the design systems based on the
information available to the VE team during the workshop.
The value engineering team reviewed the engineering documents available with focus on
ways to reduce construction cost without major impact on project schedule, enhance
engineering systems project overall quality to make the best use out of each Saudi Riyal
spent on the project. In addition, the VE team’s task was to value engineer and reduce
project total life cycle cost and generate a large quantity of ideas that could enhance
project quality and reduce costs then develop those high ranked ideas to improve quality
and further reduce first and total life cycle costs of engineering systems while meeting the
project’s schedule, program, quality and budget requirements through utilization of the l
Value Methodology Functional Approach.
The VE Workshop Objectives:

Reduce Initial cost
Reduce O&M \ LCC costs
Increase project revenues
Optimize engineering systems performance
Minimize construction time
Meet Project schedule
Revisit Electrical & Mechanical Systems
Validate cost estimate
Optimize finishes
Revisit external wall systems
Optimize architectural system
Meet program requirements
Improve facility performance and operation
Balance between project quality, program and cost
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To meet these objectives, Dr. Khaled Obeid, PE, CVS- Life the Director of Value
Management at Otaishan Group and the Certified Value Specialist (CVS for Life) has led
this VE study throughout all phases of the Value Engineering Job Plan as per SAVE
International including information, function analysis, creativity, evaluation,
recommendation and proposal development phases.
The overall cooperation demonstrated by the top management representatives of SBCM

namely Eng. Mahmoud Shabban, General Manager, and Eng. Motasem M. Alnusairat,
Area Manager was very helpful during this workshop. The cooperation and valuable
participation of all VE team members was the key to the success of this VE study. They all
have demonstrated team work, excellent cooperation and group dynamic effectiveness
throughout this Value Engineering workshop.
The total potential savings, considering only those proposals, which are mutually
exclusive, were calculated and noted below. In addition, quality and design suggestion
items are recommended even though some of which have the potential to “add” cost to the
project as “value-added” Design Suggestions (DS) could be considered for further review.
The total potential life cycle cost savings developed by the VE team where appropriate are
illustrated in the proposal sheets of VE recommendations. The total potential savings after
subtracting some value added cost items without applying any mark up factor because the
estimated unit costs used include the applicable contingencies and contractor’s mark up.
The summary of VE recommendations could be summarized by disciplines as follows:
VE Potential Savings Summary
Discipline #I #P I.C. Net Savings LCC Savings Total Savings
Architectural 30 27 SR 4,465,006 SR 2,787,260 SR 7,252,266

Mechanical 13 5 SR 1,918,992 SR 1,080,176 SR 2,999,168
Electrical 22 6 SR 980,860 SR 649,531 SR 1,630,391
Sub Total 65 38 SR 7,364,858 SR 4,516,967 SR 11,881,825
The adequacy and appropriateness of each VE recommendation can only be fully

determined by the Client management and Otaishan Group design team with experience
regarding the limitations of project schedule, budget, program, new facility requirements
and site conditions. Despite the constraints, it appears to the VE team that the buildings
layout, massing, the site utilization and layout of present design is fairly effective. On the
other hand the project available funds is limited and below the projected estimated cost of
the project.
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In summary, the value engineering effort has generated some ( 65 ) ideas and developed
some ( 38 ) proposals along with design suggestions that help establish the design criteria
for engineering systems specially structural, electrical and mechanical systems. These
ideas and associated design suggestions when implemented would result in achieving the
project objectives stated earlier and should bring total project cost below 48 MSR
estimated construction cost for this project.
Also, it is recommended to explore the ideas and the design suggestions listed on the
creativity sheets for further value improvement and quality enhancement opportunities.
Some selected VE proposals with the greatest impact on cost savings and quality
improvements are listed by disciplines as indicated below:
ARCHITECTURAL IDEAS
Eliminate Emulsion paints to interior plaster in offices areas as core and shell
building
Use 15 cm CMU in lieu of 20 cm for interior partitions
Optimize usage of marble cladding for interior wall finishes

Use High Quality porcelain in lieu of granite tiles for elevator lobbies flooring
Use standard cut 20mm thick natural stone mechanically installed in lieu of
40mm thick Italian marble in elevation façade
Eliminate plaster base skirting 30mm thick and 10cm high in offices and let to be
done by tenants .
Minimize the usage of terrazzo tiles at roof level
Eliminate wall mounted hand rails.
Optimize area of tinted double glazed curtain wall in elevations
Use cast in situ terrazzo in lieu of Italian marble for internal stairs finishes
Use PROTECRETE/ Water proofing admixture in lieu of membrane
Use fare face finish concrete for basement walls and ceiling without plaster &
paint finish
Eliminate external water feature and utilize green grass area
Optimize the size of curved shape information counters at main entrance lobby
and public area
Replace double leaf offices doors 150cm wide by one leaf doors 110cm wide
Eliminate Pre-cast curb stone from parking floors and utilize wheel stopper only
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Replace stainless steel ladder for water tank with galvanized steel water base
epoxy paint
Replace stainless steel external louvers fixing at elevations with powder coated
metal louvers
Eliminate finishes for Kitchen and WC in offices and to be done by tenants.
MECHANICAL IDEAS
Optimize HVAC Load
Use package units
Replace ducted split units with split unit without duct
Optimize the number of sprinklers
Single riser for sewer (waste & soil) pipe and ventilation pipes
ELECTRICAL IDEAS
Optimize fire alarm system
Optimize Number of CCTV
Telephone system without telephone instrument.
Delete Master Antenna net work
Optimize LV cable size
Optimize Illumination
The summary of the Value Engineering Potential Savings is illustrated by the pie chart
depicted in Figure ES-1.
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VE Implementation
VIEW TOWER
RIYADH, SAUDI ARABIA
LCC Cost Savings

Initial Cost Savings
4,516,96
7,364,858
CONSTRUCTION COST without Structural = 32,524,130 SR
Dr. Khaled Obeid, PE, CVS - Life

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SECTION 1 – FACILITY ECONOMICS
OTAISHAN GROUP VALUE ENGINEERING PROGRAM
The basic goal of Otaishan Group Value Engineering Program as administered by Dr.
Abdulaziz Al-Otaishan, President and CEO- is to assist in controlling and managing Saudi
project costs while maintaining essential functions, operational integrity, and an
appropriate project quality. This is accomplished by conducting regular project reviews
and preparing recommendations for each project at selected milestones. These
milestones could include:
Design Program
Schematic Design
Design Development
Construction Documents
Construction
Post Occupancy
The value management techniques utilized may include estimating, value engineering, life
cycle costing, design programming, and post occupancy evaluation, depending on the
stage of the project.
Areas of study typically include:
Environmental Criteria and Standards

Process/ Permit
Design
Budget and Schedule
Master Plan and Site Planning
Layout and Space Efficiency
Building Systems (Structural, Architectural, Mechanical, Electrical)
Maintenance & Operation Efficiencies
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Energy Conservation
Fire Protection
Constructability
Contracting Methods
Operational Considerations
Proposals for the recommended changes are prepared, and forwarded to the client for
scrutiny and consideration for actual implementation. The implementation of any of the
recommendations to the project under study is strictly by determination of the client.
VALUE ENGINEERING TEAM
The Value Engineering Team leadership for this project was organized by Otaishan Group
- Value Engineering Section to provide experience in VE methodology while the multi
disciplined VE team members were provided by Sabbagh Engineering Consultants in
different systems design. The VE team reviewed the plans, design criteria note book, and
other preliminary data and information available for the current project design stage. The
Value Engineering team participants and their team assignments are listed in Figure 1-1.
The VE attendance list with the corresponding addresses and phone/fax numbers is
indicated on Figure 1- 2.
VALUE ENGINEERING AGENDA
Figure 1- 3 presents the 5-day agenda, which was generally fulfilled during the course of
the VE study. It is consistent with the VE Job Plan as per SAVE International, which is
explained in the VE procedures in Section 3 of this report.
VE IMPLEMENTATION PLAN
Figure 1- 4 presents the Value Engineering schedule of activities. A draft report was
presented at the end of the workshop after the VE team presentation in the last day of
workshop for the design team and the owner representatives to review. The design team
then responds to the owner with their recommendations for acceptance or rejection of VE
proposals. The owner reviews these comments and gives final guidance as to
incorporation of the VE ideas into the project in a resolution meeting. After owner direction
is given, the design team begins to process the implementation of the approved VE
proposals.
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VE TEAM MEMBER ASSIGNMENTS
VE Team Leader
Dr. Khaled A. Obeid, PE, CVS- Life
Team # 1 Architecture
Abd Al Nasr Mahmoud
Magdy Abd Al Samie
Mohamed A. Essa
Team #3 Mechanical
Mohamed A. Hussain, AVS
Samir Anany
Team #4 Electrical
Mohamed A. Hussain, AVS
Samir Anany
Team #4 Civil/ Cost

Mohamed A. Essa
Figure 1-1
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OTAISHAN GROUP- VALUE MANAGEMENT

VALUE ENHANCEMENT (VE) WORKSHOP
THREE DAY AGENDA
Day 1
8:00 a.m. INTRODUCTION TO WORKSHOP/INFORMATION PHASE
Welcome & Opening Remarks

Team Member Introductions
Objectives of Workshop
Workshop Organization & Agenda
9:15 VALUE ENGINEERING BRIEFING
10:00 PROJECT DESIGN PRESENTATION (By Design Team)
Project Goals
Site and Building Layout
Building Systems (Architectural, Structural, Mechanical, Electrical)
Project Budget
Wish List
"Value Listening" Exercise
11:00 QUALITY & COST MODELS
Project Function Logic Diagram

Quality Model
Project Construction Cost Model
Detailed Cost Estimate
11:30 REVIEW OF DESIGN DOCUMENTS & MODELS

(Individual VE Teams)
Organize into Assigned Teams

Review Drawings & Other Information
Study Quality & Cost Models
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Day 1 ( continued)
12:00 FORCE FIELD ANALYSIS (Design Team/Owner/Users)
Best Project Features

Weakest Features
Ideas to Enhance Best Features
Ideas to Improve Weakest Features
12:30 LUNCH
1:00 SUMMARY OF FORCE FIELD FINDINGS (All VE Teams)
1:45 FUNCTION ANALYSIS/GROUP CREATIVITY PHASES
Update Function Logic Diagram

Perform Function-Cost-Worth Analysis
Complete Function-Oriented Cost Model
Brainstorm Ideas to Meet Functions
Identify High Cost Elements for Value Enhancement
5:30 ADJOURN
Day 2
8:00 a.m. CREATIVITY PHASE (continued)
Brainstorm Large Variety of Ideas

Generate Ideas for Basic Function(s)
Think of Ideal Solutions
Modify and Combine Ideas
12:30 LUNCH
1:00 EVALUATION PHASE
List Idea Advantages & Disadvantages

Evaluate Ideas by Comparison
Rank Ideas for Further Investigation
2:30 SUMMARIZE IDEAS FOR DEVELOPMENT (All VE Teams)
3:00 PROPOSAL DEVELOPMENT (Individual VE Teams)
Team Member Proposal Development Assignments

Prepare Design Alternatives
Consultations with Specialists & Manufacturers
Cost Estimate of Alternatives
Sketches of Alternatives
5:30 ADJOURN
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Day 3
8:00 a.m. REVIEW STATUS AND PROGRESS OF TEAMS
8:15 LIFE CYCLE COST ANALYSIS
Estimates of Maintenance, Energy, Replacements

Present Worth Life Cycle Cost Calculations
Sensitivity Analyses (as required)
10:00 RECOMMENDATION PHASE
Written Proposals (Present, Proposed, Discussion)

Finalize Sketches of Present & Proposed Design
Complete Value Summary Sheets
12:30 p.m LUNCH
2:30 VE PRESENTATION
Opening Remarks
Summary of VE Process (Steps, Models, Function Analysis, etc.)
VE Proposals & Cost Savings (Team Leaders)
Summary of Value Enhancement and Potential Cost Savings
Comments & Discussion
Next Steps (VE Implementation Plan)
Closing Remarks
5:30 ADJOURN/CELEBRATION!
Figure 1- 2
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VE SCHEDULE OF ACTIVITIES
FOR IMPLEMENTATION
Task Date Responsibility
VE Study Workshop Dec. 24- 26, 2007 OGVM/ SEC
Develop VE Recommendations Dec. 25- 26, 2007 OG/ VE Team
Review VE Recommendations Jan. 6, 2008 Client/ OGVM
Final VE Report January 9, 2008 OGVM

(Includes Client Comments)
VE Implementation Through out Design Client/OG (Optional)

And Construction
Figure 1- 3
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SECTION 2 – PROJECT DESCRIPTION

GENERAL:
The project includes a 8 story Tower including 8 floors of offices and support spaces, in
addition to three basements as a parking garage, ground floor, mezzanine and penthouse.
The VIEW TOWER, commissioned by ABDUL MOHSEN BIN TURKY BIN AHMED AL
SUDAIRY for Construction and development in 2006, presents a unique opportunity to
develop an iconic building on a site which has wonderful development potential. The site
characteristics for this area of Riyadh City are:
• Up market location in an area developing as one of Riyadh’s premiere real estate

value.
• Location near to 2 of Riyadh’s up market Hotels, affording the opportunity to
capitalize on business visitors.
• Well served by major traffic arteries being
1. on the King Fahad Road
2. Bordered by the Maka Road
This ensures the site is adequately served by roads to ensure good traffic flow to the
building. This should cater for the traffic loads which will be generated by the anticipated
members of office owners and their staff. From inception, it has been clear that the
building is to be designed to have its floor space rent to individual owner occupiers.
Accordingly the professional team is aware that all design criteria must be structured to
fairly and correctly apportion operating costs. Additionally, as the project develops, selling
modules and strategies will be fine tuned and serving requirements to these modules
clearly defined.
The total site area is 2508m2 which will accommodate the Multi Story Tower and Parking
associated parking basements required. The total gross build up area of this project
including parking 16301m2 while total offices area is 11347m2 with building space
efficiency of 70%. The total estimated construction cost as prepared by the SBCM is
47,877,916 Million Saudi Riyals including contingencies, escalation and preliminaries costs
OGVM SBCM
approximately as detailed in the updated estimate/ BOQ available during the workshop for
this project.
Internal Finishes:
Flooring:
• Good quality of stone, porcelain, granite and Marble for entrances, corridors and
public spaces, generally:
• Adequate skirting for each type of flooring shall be used
• Concrete with epoxy paint and marked for parking area
Walls:
• Marble cladding for entrances, lobbies, corridors, Public areas used.
• Paint on cement plaster for service areas and similar spaces
• Full height ceramic wall tiles for public toilets.
Ceilings:
• Painted gypsum board.
• Exposed grid acoustic tiles on metal suspension system for administration
corridors, offices & similar spaces may be used.
• Exposed concrete for electro-mechanical rooms & utilities area. Types of ceilings
will be selected considering the types and suitable lighting for each space.
Doors:
Doors shall comply with Gulf code.
Door leaf size dimension shall be selected according to space and code requirements.
Code fire rating requirements shall be complied strictly to all doors
Door hardware shall be complied with the code, and to be selected to suit the use
Weather proofing devices shall be used for external doors to achieve maximum thermal
efficiency.
Steel insulated fire resistance doors including steel frame
Hard wood solid core door and frame
Electro static powder coated aluminum and double clear insulated glass doors
Glazing:
Aluminum and glass screen walls system
Curtain wall shall be used where large glass facades are shown in the design
Thermal & Moisture Protections:

• The buildings thermal insulation is of a great benefit to reduce air-conditioning loads,
which will affect both direct and running cost.
• Moisture and thermal insulation materials shall be used in all buildings.
• External walls & roofs shall be insulated.
• Under ground structures, roofs and wet areas shall be completely waterproofed
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MECHANICAL & PLUMBING SYSTEMS
Mechanical Services
Air conditioning
Mechanical ventilation
Domestic cold water services
Domestic hot water services
Above Ground drainage
Below Ground drainage
Fire protection systems
Irrigation System
Fully integrated controls/ Building Management System (BMS)
HVAC
Ducted split unit with supply diffusers and return diffuser the return air through planum,
The condenser units placed on the roof (Nineth floor) and the evoprative units ceiling
mounted with duct and supply diffuser the evoprative and condenser unit is connected
through the refregent pipe return and supply through mechanical shafts.The fresh air duct
and return air duct, Damper in supply, return and fresh air duct are existing in the system.
Plumbing
UPVC pipe class-4 used for drainage with three risers (ventilation, waste and soil) and for
water supply UPVC class-5 pipe is used.
Building Management System (BMS)

A stand alone Building Management System (BMS) will be provided for the building.
For additional detailed information about the architectural and engineering systems please
refer to the Schematic Design Report September 2007. Some selected drawings
describing project plans, elevations and engineering systems are are included at the end
of this section for you review.
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SECTION 3 - VALUE ENGINEERING PROCEDURES

GENERAL
Value Engineering (VE) is a creative, organized effort which analyzes the requirements of
a project for the purpose of achieving the essential functions at the lowest total costs
(capital, staffing, energy, maintenance) over the life of the project. VE is a systematic,
organized approach to obtain optimum value for each dollar spent. Through a systematic
investigation, using experienced, multi-disciplined teams, value and economy are
improved by the study of alternate design concepts, materials, and methods.
Management of the VE study is performed through the leadership of a Certified Value

Specialist (CVS) having extensive experience in performing VE studies. Experience has
shown that project studies performed by a team with limited VE leadership will tend to
steer in the direction of a design review. A design review normally concentrates on
identifying errors in the documents, while a VE study focuses on function analysis in order
to reduce the total cost of ownership. Application of the VE methodology and coordination
of the study activities significantly increases the implementation of recommendations.
This approach has been used successfully applied on projects of all types and magnitudes
and allows the VE team to maintain a responsive turn-around while producing meaningful
results. The approach also encourages owner and designer participation in the study
effort in order to take advantage of their experience and knowledge. A multi-disciplined
team is formed to analyze the project utilizing the value engineering job plan. It is the
team's objective to analyze the project to find high cost areas, recommend alternatives
and estimate initial, energy, and life cycle costs for the original system and for each
proposed alternate system. Other criteria also used to assure the proposed
recommendations do not sacrifice essential building functions and the timely completion of
the project.
Following is a description of the value engineering analysis procedure which is followed

during a value engineering study/ workshop. Each step plays an important part in
achieving results and assuring eventual savings to the Owner. The VE study is organized
into three distinct parts as indicated in Figure 3-1: (1) Pre-workshop Preparation; (2) VE
Study Workshop; and, (3) Post-workshop Implementation. Figure 3-2 is the Value
Enhancement - Task Flow Diagram which outlines the VE study procedures.
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VIEW TOWER
Project Approach
Value Engineering Methodology
Pre-Workshop
1-4 Man days
1-3 Team Members
2-5 Calendar Days
Workshop
10-25 Man days
5-12 Team Members
2-5 Calendar Days
• Project Coordination Post-Workshop
• Data Preparation 2-5 Man days
• Modeling 1-2 Team Members
• Quality VE Job Plan: 2-5 Calendar Days
• Program
• Information Phase
• Cost
• Function Phase
• Risk
• Creativity Phase
• Environmental
• Evaluation Phase • Final Report
• Recommendation Phase • Implementation
• Project Follow-Up
Figure 3 - 1
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VALUE ENHANCEMENT - TASK FLOW ACTIVITIES
Pre-Study
Project Coordination: Distribute plans, specifications, notes & project cost estimate
Data Preparation: Prepare agenda, attendance list, function

analysis, FAST diagram
Modeling: Quality (if applicable), Cost
Study Workshop (phases)
Information: Secure facts, determine cost, fix costs on specific requirements.

Function: Verb/noun definitions of function, value function relationships (function
logic diagrams) and cost these functions.
Creativity: Establish positive thinking and develop creative ideas in a team

setting.
Evaluation: Refine and combine ideas, establish costs on as many ideas as
possible, develop function alternatives and evaluate by comparison.
Recommendation: Present proposals that resolve the study issue
and motivate to action.
Post-Study Implementation Procedures
Study Report
Acceptance and Implementation of Proposals
Project Follow-up
Figure 3- 2
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Pre-Study Preparation
The success of the VE study is largely dependent on proper preparation and coordination.
Information and documents are furnished by the owner and are distributed to the team to
prepare them for their area of study. All participants are briefed on their role and
responsibility during the study. The pre-study effort includes the following activities:
Identification of constraints to the VE study

Review of project documentation and distribution of information
to team members
Finalization of team and team assignments
Preparation of space
Preparation of cost model
Preparation of other models as appropriate i.e (energy, quality,
LCC, time, risk, etc.)
Finalization of arrangements for workshop
The VE team relies on the owner for the completeness and organization of the material to
be furnished. The following data is normally provided for the study:
Facility Program and Objectives (Basis of Design)

Design Standards & Codes
Master Site Plan (including Site Analysis)
Design Calculations (as appropriate)
Soil Borings
Design Drawings and Preliminary Specifications
Estimate of Construction Cost (including back-up)
Architectural and Engineering Concepts Description
Quality Model
The quality model, shown in Figure 3 - 3, serves as the basis of the design process that
follows. Attitudes and expectations, once defined serves as the sensitive measure by
which the VE team evaluate various design alternatives. The graphical quality model
illustrates the categories of quality addressed by the VE team and confirmed by the
owner/design team during the VE workshop and the quality criteria were established
during this VE study. A quality model was prepared for this project in the presence of
owner and construction manager representatives.
Space Model
This model diagrams the distribution of the primary and secondary space usage. The
space model distributes spaces by function and is used by the VE team to help identify
areas of potential excess or deficiency of planned space. This model is normally prepared
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QUALITY MODEL
VIEW TOWER
RESOURCES OPERATIONS
Operational
Capital Cost Effectiveness/ Safety
Quality Profile
Reduce
Present Design
Cost
Schedule Flexibility /
Balanced
Response Expandability
Reduce
Time Owner’s Quality
Meet Profile
Meet
User
O & M Cost Comfort
Reduce
Cost
Soft Maximum
Meet
Minimum
Response
Response
Site Planning /
Environmental Image
Architectural
Security / Image
Safety
Engineering Community
Performance Values
TECHNOLOGY IMAGE

at the preliminary design submittal stage. A Space Model was not developed for this
project due to lack of space program available during the workshop.
Cost Model
Cost information used during the study is normally prepared by the design team’s
estimators and was handed to the VE team leader on the first day of this study. A cost
model could be prepared from this information. The cost model distributes costs by
function and is used by the VE team to help identify areas of potential savings. For this
project, the detailed cost estimate was available; therefore, the function cost\ worth model
was developed for the preliminary design submittal. A functional cost analysis approach
was employed during the VE workshop.
Risk Model
The risk model identifies the areas of high, medium and low risk within the project. This
will make the VE team focus on high and medium risk areas and generate ideas to
mitigate and minimize risk within the project. A risk model was developed for this project
with participation of owner and construction manager representatives.
Energy Model
This model diagrams one of the key production annual expenditures, energy consumption,
for potential cost control. This model provides backup data for the LCC Model. This
model is normally prepared at the 35% design development stage when LCC data is
available. An Energy Model was not developed for this project due to lack of LCC data.
LCC Model
The life cycle cost model depicts the annual cost to produce and distribute the products
being marketed as well as the cost of all supporting plant, equipment, and overhead
operations. An LCC spread sheet model was used to calculate the LCC savings
associated with some VE recommendations for this project.
Economic Factors
During the value engineering study, construction cost and life cycle cost summaries are
prepared for each element of the project. Economic data and assumptions made for the
life cycle cost comparisons are provided by the owner. Following is data used for this
project:
Discount Rate: 8 % (compound annually)

Analysis Period: 30 years
Present Time: July, 2008
Equivalent Approach: Present worth method
OGVM SBCM
Inflation Approach: Constant dollars approach
Differential Escalation Rates:
Electrical Energy: 0%
Natural Gas 0%
Other 0%
Present Worth Annually (PWA) Factors:
Electricity 11.2578
Oil 11.2578
Maintenance, Staffing 11.2578
Single Amount Present Worth PW Factors:
Year 5 0.6806
Year 10 0.4632
Year 15 0.3152
Year 20 0.2145
Year 25 0.1460
Year 30 0.0994
Periodic Payment (PP) Factor:

0.08883
OGVM SBCM
RISK MODEL
VIEW TOWER OGVM
MEDIUM
HIGH
LOW
RISK AREAS
N/A
ELEMENTS
A. MANAGEMENT, FINANCIAL
& ADMINISTRATIVE RISKS Public and political perspectives
Budget limitations, approvals process, & other constraints
Site acquisition
Permitting delays
Agency jurisdictions and conflicts
Project mgt., organization, decision-making processes, information flow
Labor issues
Other: Finacing of Project
B. ENVIRONMENTAL, Inclement weather, storms, floods
GEOTECHNICAL RISKS Hazardous waste disposals, site remediation
Environmental restrictions (air quality, noise, toxic mat., etc.)
Contaminated soils remediation
Groundwater remediation
Underground cavities
Inadequate subgrade geotechnical testing
Unanticipated archaeological or historical findings
Other: Underground Water
C. TECHNICAL RISKS Systems, processes, and material
New, unproven systems, processes and materials
Other:
D. IMPLEMENTATION RISKS
1. Design Design approvals and changes
Design errors and omissions
Untested and unproven design features and innovations
Other:
2. Contractor Availability of qualified contractors or skills
Construction material requirements
Inadequate or unclear specs for mat'ls & workmanship
Labor negotiations/work stoppages
Operator training/certification
Management of subcontracts
Other:
3. Change Orders Design Changes
Field Changes
4. Equipment/Material Availability
Rejects, defects
Malfunctions or failures
Other: Material Testing
Dr. Khaled A. Obied, PE, CVS-Life

RISK MODEL
VIEW TOWER OGVM
MEDIUM
HIGH
LOW
RISK AREAS
N/A
ELEMENTS
5. Project Controls Planning

Scheduling
Estimating
Other: Training for smart building equipment
6. Logistics, Transportation Laydown areas limitations
Traffic congestion at site or access to site
Transportation difficulties for construction mat'ls
Other:
7. Interference and Interference with other work
Maintenance of Services Maintenance of certain essential services during construction
Tie-ins/cutovers with utilities
Other:
8. Condition of Existing Condition of existing structure and material
(For renovation, rehab. Tie-ins
repair projects) Removals or restoration
Other:
9. Safety and Hazards Safety to contractor and project personnel
During Construction Safety to owner and non-project personnel
Other: Pedestrian safety
10. Process start-up and Testings and test planning and scheduling
Commissioning Malfunctions and failures
Indequate documentation and/or training
Other: Security

CONCRETE
14.38
ELECTRICAL 8.76
MECHANICAL 7.95
FINISHES 7.15
DOORS AND WINDOWS 3.90
METAL 1.39
SITE CONSTRUCTION 1.10
MASONRY 0.88
CONVEYING SYSTEM 0.86

VIEW TOWER
THERMAL & MOISTURE
0.76 Total COST
PROTECTION
48,000,000 SR
SPECIALIST 0.49
Millions SR
EQUIPMENTS 0.39
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00

CONCRETE 14.38
12.94
ELECTRICAL 8.76
7.89
MECHANICAL 7.95
7.15
FINISHES 7.15
6.44
3.90
DOORS AND WINDOWS
3.51
1.39
METAL
1.25
1.10
SITE CONSTRUCTION
0.99
MASONRY
0.88
0.79
CONVEYING SYSTEM
0.86
0.77
THERMAL & MOISTURE 0.76

PROTECTION 0.68
VIEW TOWER
SPECIALIST 0.49 COST/WORTH
0.44
0.39
EQUIPMENTS
0.35 SR Millions
0 2 4 6 8 10 12 14 16
Dr. Khaled Obeid, PE, CVS-Life

CONCRETE 29.95%
ELECTRICAL 18.26%
MECHANICAL 16.56%
FINISHES 14.90%
DOORS AND WINDOWS 8.13%
METAL 2.89%
SITE CONSTRUCTION 2.29%
MASONRY 1.83%
CONVEYING SYSTEM 1.78%
THERMAL & MOISTURE PROTECTION 1.58%
SPECIALIST 1.01% VIEW TOWER

Stytems % to Total Cost
EQUIPMENTS 0.81%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

CONCRETE 881.99
ELECTRICAL 537.60
MECHANICAL 487.50
FINISHES 438.80
DOORS AND WINDOWS 239.44
METAL 85.15
SITE CONSTRUCTION 67.39
MASONRY 53.84
CONVEYING SYSTEM 52.45
THERMAL & MOISTURE

46.67
PROTECTION
SPECIALIST 29.87 VIEW TOWER

Square Meter Cost
EQUIPMENTS 23.91
SR
0 100 200 300 400 500 600 700 800 900 1,000

VE Study Workshop
During the actual workshop portion of the VE study, the Job Plan is followed. The Job
Plan is an organized approach for searching out high cost areas in the design and
developing alternate solutions for consideration. The workshop session uses a multi-
disciplined team following an Agenda which details the Job Plan to arrive ultimately at
recommendations for implementation.
The VE Job Plan follows five key steps:

Information Phase
Function Phase
Creativity Phase
Evaluation Phase
Information Phase
At the beginning of the VE study, it is important to understand the background and

decisions that have influenced the development of the design. For this reason, the
Owner/Designer normally presents orally, the building and process designs to the VE
team. The site, building layout, process flows, and process equipment, architectural,
structural, mechanical and electrical systems are discussed.
The information phase also includes further refinement of the cost, space and other
models that are prepared before the workshop session. These models are updated based
on information received during the Owner/Designer's initial presentation. These models
also form the basis of the VE team function analysis, which follows.
The following information is normally provided to the certified value specialist (CVS) two
weeks prior to the value engineering study:
a. Economic Data
1. Desired return on investment (ROI)
2. Percent of equity by Owner
3. Financing period
4. Interest rate
5. Inflation rate on product market value
6. Escalation rates to be used for:
7. Life span to be used for analysis purposes
8. Cost estimate (breakdown) or all process equipment and
facilities expected to be procured.
OGVM SBCM
B. Other Data
1. Project goals and objectives
2. Project constraints
3. Special requirements or criteria (i.e. flexibility, O&M
cost effectiveness, capital cost effectiveness,
safety, security, environmental, etc.)
C. Building Data
1. Plans
2. Specifications
3. Equipment Lists
4. Project Cost Estimate
5. Geotechnical Report
6. Systems Design Calculations
Function Phase
The required functions of the project are the controlling elements in the overall VE
approach. This procedure is beneficial to the VE team because it forces the participants to
think in terms of function, and the cost associated with that function.
This VE Study utilized the data collected from the information phase to produce several
new ideas and proposals unique to this type of study.
1. Function Logic Diagram - In order that the team might better understand the overall
functions of the project, a "Function Logic Diagram" is prepared. Reading from left to right,
it is used to help explain how the designer chose to solve the functions. The function logic
diagram, when read from right to left, also helps answer why these functions are important
to the owner.
This diagram normally translates production goals, objectives and tasks into a hierarchial
logic diagram of functions for a better in-depth understanding of the owner needs. The
FAST diagram which was prepared by the VE team leader just prior to this VE workshop
was used as a baseline for this VE study. The diagram was reviewed by the VE team and
the owner representatives and was amended as appropriate. The FAST diagram is
included in its revised form as shown in Figure 3 – 4 .
2. Function-Cost-Worth This technique associates tasks performed with functions

required to satisfy customer needs. Costs are identified for performing the functions. The
"worth" is the least cost to perform the required functions. Function analysis worksheets
are included in this section of the report.
Preparing the function analysis helps to generate many of the ideas that eventually result
in recommendations. This forces the VE team to speculate on alternative solutions to the
proposed design. A function-cost-worth analysis was not formally performed as a primary
generator of creative ideas. A large number of ideas were generated during the Force
OGVM SBCM
OTAISHAN GROUP- VALUE MANAGEMENT
OGVM VIEW TOWER
Riyadh, Saudi Arabia Date: 01/03/2008
Function Logic Diagram
HOW ? Criteria WHY ?

How do we_? Why do we __?
Meet Maximize Optimize
Owner Operational Site All Time Functions
Requirements Effectiveness Usage
Consolidate Secure
Operations Site & Assure
Meet Design & Safety
Codes Minimize Facilities Maximize Use House Construct
Requirements Facility of Existing Tenant Staff & Parking Procure
Expenditures Site Utilities Visitors Parking Floors & Materials &
Basement Equipment
Define
Achieve Continually Increase Satisfy Assure Owner Achieve Market Maximize House Construct Prepare/ Design Owner Needs
Investor's Improve Market Tenant's Special Leadership in "World Class" Business Office Space Layout Offices & Multi- Story Excavate View Tower & Facility
Business Profit Shares & Needs & Office Quality in Spaces Efficiency Rentable Spaces Office & Develop Business Scope
Mission Margin Value Requirments Business Office Facility Site Facility Program
Business Manage House Quality& Cost
Multi- Story Management Conduct
Be Competitive Tower Facilities Offices VE
In Market Place Attract & Keep Studies
& Satisfy High Quality Develop New House
Market Needs Managers & Marketing Prayer
Tenants Strategies Halls
Attract Attract
Very Good Tenants House
Tenants & & Visitors Electrical &
Impress Mech'l Rooms
Visitors Store
Needed House
Supplies Staff Aminities &
Storage Space
Improve Enhance House

Employee Employee Health Club &
Notes: Productivity Health& Comfort Facility Support
- Functions are the objectives of the projects expressed in active verbs and measurable nouns Development
- Reading the function logic diagram from right to left explains why each function is necessary Accommodate
- Reading the function logic diagram from left to right explains how each function could be achieved. Facility Support
(Mech./Elect.)
1 Dr. Khaled A. Obeid, PE, CVS- Life

FUNCTION ANALYSIS WORKSHEET
PROJECT: VIEW TOWER
LOCATION: Riyadh, Saudi Arabia
Component Description Function Kind Cost Worth Cost/ Comments

Verb Noun (x1000) (x1000) Worth
B = Basic Function S = Secondary Function RS = Required Secondary Function

Foundation Support Load B
Substructure Support Load B
Superstructure Support Load B
Exterior Closure Enclose Space B

Roofing Protect Building B
Interior Construction Finish / Divide Space RS
Conveying System Transport Weight RS
Plumbing Convey Fluids B
HVAC Control Temperature B
Building/
Fire Protection Protect RS
People
Special Mechanical Control System S
Service & Distribution Distribute Power RS
Lighting & Power Power Space B
Site works Prepare Site RS
General Condition & Profit Generate Profit S
Site Utilities Support Buildings/Site B

Field analysis and the Brainstorming activities. A listing of the functions of the most critical
or questionable building systems was made, attempting to generate more ideas.
Creativity Phase
This step in the value engineering study involves the listing of creative ideas. During this
time, the value engineering team thinks of as many ways as possible to provide the
necessary functions within the project at a lesser cost to the owner. During this creative
session, judgement of the ideas is not permitted. Ideas to enhance the best features and
ideas to improve on the weakest features are then generated. The best and weakest
features are contained in this section of the VE report. The value engineering team is
looking for quantity and association of ideas which will be screened in the next phase of
the study. Many of the ideas brought forth in the creative phase are a result of work done
in the function analysis. This list may include ideas that can be further evaluated and used
in the design. The creative ideas generated during the workshop are included in this
section of the VE report on the Creativity / Evaluation Worksheet.
Evaluation Phase
In this phase of the project, the value engineering team judges the ideas resulting from the
creative session. The advantages and disadvantages of each idea are discussed. Ideas
are ranked based on savings potential, redesign time and client acceptability. Ideas found
to be not worthy of additional study are ranked low and those ideas that represent the
greatest potential are ranked high, then were developed further. A weighted evaluation is
applied in some cases to account for impacts other than costs. Ideally, the value
engineering team would like to develop all ideas, but time constraints usually limit the
number that can be prepared. The ideas ranked highest by the value engineering team
are selected for further review with members of the design team for their input.
During this phase many of the ideas are expanded into workable solutions. This
development of these ideas consists of preparing estimated initial and life cycle costs, a
descriptive evaluation of the advantages and disadvantages and engineering calculations
as appropriate proposed recommendations. It is important that the value engineering
team convey the concept of their recommendation to the owner/design team. Therefore,
each recommendation is prepared with a brief narrative to compare the original design
method to the proposed change. Sketches and associated materials, where appropriate,
are also prepared in this part of the study.
The last phase of the value engineering study is the presentation of recommendations.
The VE recommendations are further screened by the VE team before formal
presentation. The oral presentation of results is made on the last day of the workshop to
the owner/design team. The recommendations, the rationale that went into the
development of each proposal, and a summary of the cost savings are presented at this
time so that the owner/design team can initiate an evaluation of the value engineering
recommendations prior to the receipt of the formal VE report.
OGVM SBCM
Post Study Procedures
The post study portion of the VE study includes preparation and submittal to the
owner/design team, the Final Value Engineering Report incorporating the
recommendations developed in the workshop. The owner/design team responds by either
incorporating the recommendations into the design or presenting reasons for rejection. A
summary of the cost savings resulting from the study is normally included in the
owner/designer's response report.
This post study effort also requires continued project follow-up to resolve any questions
remaining with the VE proposals. Either the value engineering team leader or the
appropriate VE team member responsible for the proposal in question works directly with
the owner/design team to finalize implementation.
Evaluation Criteria:
• Meet functions required
• Potential initial cost savings
• Life cycle cost savings
• Schedule impact
• Maintaining floor layout
• Simplify construction
• Time and ease of implementation
• Owner’s acceptability
• Construction time savings
• Brings additional revenue to owner
• Cost of implementation
• Improve safety
• Enhance quality
• Improve reliability and durability
• Meet design and code requirements
OGVM SBCM
CREATIVITY / EVALUATION WORKSHEET
PROJECT:
VIEW TOWER
Item NO Description Rank
ARCHITECTURAL IDEAS
A1 building 8
Eliminate Emulsion paints and interior plaster in offices areas as core and shell
A1-b building 10
A2 Use 15 cm CMU in lieu of 20 cm for interior partitions 8
A3 Optimize usage of marble cladding for interior wall finishes 9
A4 Use High Quality porcelain in lieu of granite tiles for elevator lobbies flooring 8
A5 40mm thick Italian marble in elevation facad 8
A6 done by tenants . 10
A7 Minimize the usage of terrazzo tiles at roof level 10
A8 Eliminate wall mounted hand rails. 8
A9 Optimize area of tinted double glazed curtain wall in elevations 9
A10 Use cast in situ terrazzo in lieu of Italian marble for internal stairs finishes 8
A10-b Use Saudi bianco granite in lieu of Italian marble for internal stairs finishes 9
A11 Use PROTECRETE/ Water proofing admixture in liue of membrane 9
A12 paint finish 10
A13 Eliminate external water feature and utilize green grass area 8
A14 and public area 8
A15 Provide promotional spaces where appropriate DS
A16 Provide provision for ATM machines for additional revinue DS
A17 Reduce floor to floor height as appropriate DS
A18 Use epoxiy finish for stairs 4
A19 Replace double leaf offices doors 150cm wide by one leaf doors 110cm wide 8
A20 Use low E glazing in lieu of regular glazing DS
A21 Add souna and steam rooms to health club DS
1 Dr. Khaled Obeid, PE, CVS -Life

PROJECT:
VIEW TOWER
A22 Eliminate Pre-cast curb stone from parking floors and utilize wheel stopper only 9
Eliminate Pre-cast curb stone from parking floors except elevators entrance and
A22-b utilize wheel stopper only 9
A23 epoxy paint 8
A24 Add toilet near prayer hall area DS
A25 Reduce door height from 2.20 m to 2.1 m 5
A26 metal louvers 8
A26-b Eliminate stainless steel external louvers at back elevation 9

A27 Eliminate finishes for Kitchen and WC in offices let it be done by tenants. 8
A28 Use local Saudi fixures for toilets. Done
A29 Change gym. Floor finishes to mormelum/ Vinyle floor finish 7
A30 Use tappered insulation for roofing in lieu of concrete screed DS
MECHANICAL IDEAS
M1 Optimize HVAC Load 8

M2 Use package units 8
M3 Replace ducted split units with split unit without duct 9
M4 Optimize the number of sprinklers 9
M5 Single riser for sewer (waste & soil) pipe and ventilation pipes 8
Use powder coated fire hose cabinets in lieu of stainless steel cabinets (40%
M6 savings) Done
M7 Use NOVAC system for fire protection in lieu of FM200 system DS
Recalculate HVAC tonnage due to change of glazing percentage (10%- 15%
M8 reduction) DS
M9 Use treated gray water for flushing toilets and garden irrigation purposes DS
Improve U value of exterior closure and roofing system by 0.05 reduction in all
M10 elements of U values DS
M11 Use infrared mixers for water faucets 7

M12 Fire main pump could be 500 GPM flow rate instead of 750 GPM. 8
In basement areas (3 - basement) square diffuser should be minimize by
M13 numbers and should be replaced by simple fixed vanes grilles / register. 8

PROJECT:
VIEW TOWER
ELECTRICAL IDEAS
E1 Optimize fire alarem system 8
E2 Optimize Number of CCTV 9
E3 Telephone system without telephone instrument. 8
E4 Delete Master Anttena net work 8
E5 Optimize LV cable size 8
E6 Optimize Illumination load 10
E7 Use energy saving lamps instated of condensate lamps 10
E8 Optimize number of speakers 7
E9 Optimize electric load design criteria DS
E10 Optimize emergency load DS
Use power system 380 Volts / 60 Hertz 3 phase system instead of 220 V/ 60 Hz
E11 three phase DS
Consider HVAC tonnage reduction in calculating electrical loads, number of
E12 transformers, switch gear and panels capacity and cable sizes 7
E13 Use T5 type fluorescent in lieu of T8 for all usable areas 6
E14 Reduce number of light fixtures in basement 7
E15 Optimize number of smoke/ heat detectors in lobby and coridoors 7
E16 Optimize capacity of panel board circut breakers DS

It is important when reviewing the results of the value enhancement workshop to examine
each part of the recommendation on its own merits. Quite often there is a tendency to
disregard a recommendation because of a small disagreement about one small portion of
the recommendation. Therefore, consideration should be further given to the areas within
a recommendation that are acceptable and supply those to the final design of the project.
Estimates of savings should also be studied thoroughly. These estimates were developed
by the VE team based on the cost data provided. Any disagreement with these estimates
should be stated by the owner and/or design team for further refinement. In all, there are
some proposals with calculations and appropriate sketches where applicable. In addition,
an estimate of the associated savings or additional costs resulting from these proposals is
also included.
ADDITIONAL COST SAVINGS IDEAS

Both the Owner and Designer should carefully review the idea listing provided in the
Creativity/Evaluation Worksheet. The VE team attempted to develop the most significant
items but, due to time limitations, could not quantify and prepare each recommendations
for every initial cost or life cycle cost saving item possible.
Therefore, the Owner/Designer is invited to review these idea listing and design
suggestions, then select those noteworthy of acceptance or modification for
implementation to optimize savings and enhance project overall quality.
BASIS OF COST
The designer estimating staff of SBCM has prepared the final construction cost estimate
for this project. The estimated total construction cost was approximately 48 MSR before
conducting this value study, the VE recommendations resulted in reducing the estimated
construction cost by 7.3 MSR in initial cost savings and 4.5 MSR in life cycle cost
savings approximately without cost cutting any of the functions or scope of the project and
still meeting project schedule. However, the estimated project cost only considered most
current labor and material pricing and taking into account the local market conditions and
considering design contingency or escalation factor. This SBCM cost estimate was the
basis of cost to be used by the VE team to quantify the potential savings of the proposals.
Any life cycle cost analysis performed is based on the economic factors listed in Section 3
of this report. Where appropriate, the impact of energy costs, replacement costs, and the
impacts on operations and maintenance are shown within each LCC recommendation as
applicable.
SUMMARY OF SAVINGS AND DESIGN SUGGESTIONS

A summary of potential cost savings for the individual VE proposals is as indicated in the
following summary sheets followed by the proposals developed by each team for different
engineering disciplines during the VE workshop. A mark up factor was not applied to the
potential cost savings or additional cost proposals of the VE recommendations.
OGVM SBCM
V
VAAL
LUUE
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NGGIIN
NEEE
ERRIIN
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REEPPO
ORRT
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For
VIEW TOWER

Design Development
SECTION 4 - SUMMARY OF RECOMMENDATIONS

This section of the Value Engineering Report summarizes the results and recommendation
of the Value Engineering Workshop. It is important that the VE team express and convey
the concept and the "spirit" of their recommendations clearly to the owner representatives
and the design team. If a proposal is not understood and is not clearly explained, it is not
likely to be accepted. Therefore, each recommendation has been presented with a brief
narrative to compare the original design to the proposed design change. Illustrative
sketches, where appropriate, are also presented in this part of the study. Before and after
cost comparisons are made to reflect unit quantities as well as overall cost. Cost
estimates are given and the life cycle cost savings are shown where applicable. At the
end of this section the summary of recommendations for value improvement are attached
followed by the value engineering proposals developed by the VE team during the
workshop.
SUMMARY OF POTENTIAL COST SAVINGS
The value engineering team developed proposals and recommendations that could be
combined into the following categories:
VE Potential Savings Summary
Discipline #I #P I.C. Net Savings LCC Savings Total Savings
Architectural 30 27 SR 4,465,006 SR 2,787,260 SR 7,252,266

Mechanical 13 5 SR 1,918,992 SR 1,080,176 SR 2,999,168
Electrical 22 6 SR 980,860 SR 649,531 SR 1,630,391
Sub Total 65 38 SR 7,364,858 SR 4,516,967 SR 11,881,825
OGVM SBCM
VE Implementation CONSTRUCTION COST EXCLUDING STRUCTURAL COST 32,524,130
Project: VIEW TOWER INITIAL COST SAVINGS (SR) 7,364,858

Location: Riyadh, KSA LCC SAVINGS (SR) 4,516,967
Date: 24-26 December 2007 PERCENTAGE OF INITIAL COST SAVINGS 22.6%
Idea Initial Cost Life Cycle Cost Changes Required
No. Description Savings (SR) Savings (SR) Major Minor Material
Remarks
Design Design Change
ARCHITECTURAL IDEAS
A1 building * 252,000 √ A
Eliminate Emulsion paints and interior plaster in offices areas as core and shell
A1-b building
812,000 A
A2 Use 15 cm CMU in lieu of 20 cm for interior partitions 68,000 √ A
A3 Optimize usage of marble cladding for interior wall finishes (120cm height) 204,464 √ A
A4 Use High Quality porcelain in lieu of granite tiles for elevator lobbies flooring * 437,250 √ R
A5 40mm thick Italian marble in elevation façade
940,000 √ A
A6 done by tenants .
162,000 √ A
A7 Minimize the usage of terrazzo tiles at roof level * 85,500 √ F.S
A8 Eliminate wall mounted hand rails. 151,300 202,399 √ A
A9 Optimize area of tinted double glazed curtain wall in elevations 700,000 2,109,258 √ A
A10 Use cast in situ terrazzo in lieu of Italian marble for internal stairs finishes * 29,400 √ R
A10-b Use Saudi bianco granite in lieu of Italian marble for internal stairs finishes 27,300 A
A11 Use PROTECRETE/ Water proofing admixture in liue of membrane * 150,270 √ F.S
A12 paint finish
291,200 373,157 √ A
A13 Eliminate external water feature and utilize green grass area 182,000 102,446 √ A
A14 and public area
282,323 √ A


Remarks
A19 Replace double leaf offices doors 150cm wide by one leaf doors 110cm wide 87,920 √ A
A22 Eliminate Pre-cast curb stone from parking floors and utilize wheel stopper only * 195,000 √ R
Eliminate Pre-cast curb stone from parking floors except elevators entrance and
A22-b utilize wheel stopper only
130,000 A
A23 epoxy paint or PVC coated
147,000 √ A
A26 metal louvers * 162,500 √ A
A26-b Eliminate stainless steel external louvers at back elevation 279,500 A
A27 Eliminate finishes for Kitchen and WC in offices and to be done by tenants. * 742,500 √ R
Sub-total Architectural 4,465,006 2,787,260
MECHANICAL IDEAS
M1 Optimize HVAC Load 1,668,492 939,176 √ A

M2 Use package units * 14,210 * 9,735,342 √ R
M3 Replace ducted split units with split unit without duct * 672,210 * 972,589 √ R
M4 Optimize the number of sprinklers * 361,564 * 203,520 √ R
M5 Single riser for sewer (waste & soil) pipe and ventilation pipes 250,500 141,000 √ A
Sub-total Mechanical 1,918,992 1,080,176
ELECTRICAL IDEAS
E1 Optimize fire alarem system * 460,000 * 258,929 √ F.S


Remarks
E2 Optimize Number of CCTV 102,000 57,415 √ A

E3 Telephone system without telephone instrument. 378,860 592,116 √ A
E4 Delete Master Anttena net work * 29,000 * 45,323 √ F.S
E5 Optimize LV cable size 500,000 √ A
E6 Optimize Illumination * 1,239,274 * 697,574 √ F.S
Sub-total Electrical 980,860 649,531
Total VE Potential Savings 7,364,858 4,516,967

* Items Not Included in Summary of Potential Savings
A : Accepted
F.S : Further Study
R : Reject

View Tower Final VE Report

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VALUE ENGINEERING REPORT

VALUE ENGINEERING STUDY

VALUE ENGINEERING STUDY

Otaishan Group Value Engineering Program

3 Value Enhancement Procedures

Post Study/Implementation Procedures

VE Task Flow Activity

VALUE ENGINEERING STUDY

• Up market location in an area developing as one of Riyadh’s premiere real estate

The VE Workshop Objectives:

The overall cooperation demonstrated by the top management representatives of SBCM

VE Potential Savings Summary

Discipline #I #P I.C. Net Savings LCC Savings Total Savings

Architectural 30 27 SR 4,465,006 SR 2,787,260 SR 7,252,266

Sub Total 65 38 SR 7,364,858 SR 4,516,967 SR 11,881,825

The adequacy and appropriateness of each VE recommendation can only be fully

 Use 15 cm CMU in lieu of 20 cm for interior partitions

 Optimize usage of marble cladding for interior wall finishes

 Eliminate finishes for Kitchen and WC in offices and to be done by tenants.

 Optimize HVAC Load

 Use package units

 Replace ducted split units with split unit without duct

 Optimize the number of sprinklers

 Optimize fire alarm system

 Optimize Number of CCTV

 Telephone system without telephone instrument.

 Delete Master Antenna net work

 Optimize LV cable size

LCC Cost Savings

CONSTRUCTION COST without Structural = 32,524,130 SR

Dr. Khaled Obeid, PE, CVS - Life

VALUE ENGINEERING STUDY

SECTION 1 – FACILITY ECONOMICS

OTAISHAN GROUP VALUE ENGINEERING PROGRAM

Areas of study typically include:

Environmental Criteria and Standards

VALUE ENGINEERING TEAM

VALUE ENGINEERING AGENDA

VALUE ENGINEERING STUDY

VE TEAM MEMBER ASSIGNMENTS

Team #4 Civil/ Cost

VALUE ENGINEERING STUDY

OTAISHAN GROUP- VALUE MANAGEMENT

8:00 a.m. INTRODUCTION TO WORKSHOP/INFORMATION PHASE

Welcome & Opening Remarks

9:15 VALUE ENGINEERING BRIEFING

10:00 PROJECT DESIGN PRESENTATION (By Design Team)

11:00 QUALITY & COST MODELS

Project Function Logic Diagram

11:30 REVIEW OF DESIGN DOCUMENTS & MODELS

Organize into Assigned Teams

12:00 FORCE FIELD ANALYSIS (Design Team/Owner/Users)

Best Project Features

1:00 SUMMARY OF FORCE FIELD FINDINGS (All VE Teams)

1:45 FUNCTION ANALYSIS/GROUP CREATIVITY PHASES

Update Function Logic Diagram

8:00 a.m. CREATIVITY PHASE (continued)

Brainstorm Large Variety of Ideas

1:00 EVALUATION PHASE

List Idea Advantages & Disadvantages

2:30 SUMMARIZE IDEAS FOR DEVELOPMENT (All VE Teams)

3:00 PROPOSAL DEVELOPMENT (Individual VE Teams)

Use 15 cm CMU in lieu of 20 cm for interior partitions

Optimize usage of marble cladding for interior wall finishes

Eliminate finishes for Kitchen and WC in offices and to be done by tenants.

Optimize HVAC Load

Use package units

Replace ducted split units with split unit without duct

Optimize the number of sprinklers

Optimize fire alarm system

Optimize Number of CCTV

Telephone system without telephone instrument.

Delete Master Antenna net work

Optimize LV cable size