An Algorithm for Evaluation of Water Resources Development Projects Using Value Engineering

Major investment is involved in water resources projects, therefore Value Engineering (VE) could be an effective tool in design new projects and re-evaluation the projects under construction and development. Value Index (VI), an indicator in VE, is originally defined as the ratio of functionality and quality to cost. It could be used for the purpose of assessing the lowest Life Cycle Cost (LCC) consistent with the required performance, reliability, quality, environmental sensitivity, and water safety and accuracy. Even though, water resources developments could be technically successful, they could encounter problems by failing to meet the socio-economic aspects and may not be able to obtain a broad base of stakeholders' satisfaction. One way to solve this problem is to have a system approach to these projects by showing how variation in design parameters that are affected by population growth, available water resources, land use and economic factors can alter the fundamental elements of the projects. The principle of system dynamics could be used to see how the system interacts with the socio-economic as well as physical variability. In this paper, an algorithm for evaluation of a water resources project and selecting the best alternatives considering value engineering principles are discussed. Applying system dynamics techniques as a tool for simulation of different scenarios can help managers consider the effects of different governing factors. The proposed procedure is applied to a water development project in the central part of Iran.