Cost saving analysis through value engineering implementation in Hermina Aceh hospital building project
List of Authors
  • Hafnidar A. Rani , Jurisman Amin

Keyword
  • Value Engineering, Cost Saving, Building Project, Hospital

Abstract
  • The construction project of the Hermina Aceh Hospital building is one of the construction projects that consists of structured and non-structured elements. The need for optimization of project funding effectiveness requires an organized approach, namely value engineering. The problem in this study is how to apply value engineering to the construction work of the Hermina Aceh Hospital building, what the best alternative is to replace the initial design with selected work items, and how much cost savings can be achieved after analysis with the value engineering method. This study aims to analyze the cost savings obtained from the application of value engineering and evaluate the difference in total planned costs before and after Value Engineering. The scope of the review in this study is limited only to architectural work, including wall and cladding work, door and window work, flooring work, and exterior work. The stages in this analysis include the information stage, creativity stage, analysis stage, development stage, and recommendation stage. The cost savings obtained from each work item in this study are wall and cladding work amounting to 367,040,188.62 IDR or 47.96%, door and window work amounting to 104,897,660.78 IDR or 57.98%, flooring work amounting to 444,590,643.60 IDR or 30.46%, and exterior work amounting to 15,306,348.30 IDR or 41.33%. The total cost of architectural work in the Hermina Aceh Hospital building project is 34,948,315,423.04 IDR; the cost savings obtained are 931,834,841.30 IDR; and there are costs after the implementation of Value Engineering amounting to. 34,016,480,581.75 IDR, or 2.67% of the initial architectural cost. The total cost of the entire Hermina Aceh Hospital building project is 95,960,840,000.00 IDR; the cost savings obtained are 931,834,841.30 IDR; and there are costs after the implementation of Value Engineering amounting to 95,029,005,158.71 IDR, or 0.97% of the total project cost.

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