Implementation of Value Engineering in Optimizing Project Cost for Sustainable Energy Infrastructure Asset Development Sarmad Dashti Latif 1* , Fathoni Usman 2 , Bilal M. Pirot 3 1 Department of Civil Engineering, College of Engineering, Universiti Tenaga Nasional (UNITEN), Selangor 43000, Malaysia 2 Institute of Energy Infrastructure, Universiti Tenaga Nasional, Kajang 43000, Malaysia 3 Civil Engineering Department, College of Engineering, Komar University of Science and Technology, Sulaimany 46001, Iraq Corresponding Author Email: Sarmad.latif@uniten.edu.my https://doi.org/10.18280/ijsdp.150709 ABSTRACT Received: 20 July 2020 Accepted: 11 September 2020 The purpose of this study is to optimize costs by analyzing a case study of the Energy Utility Company (EUC) project in Malaysia and building the main electric distribution station (MEDS) project specifically. In order to achieve this objective, Value Engineering (VE) technique as one of the proven tools was selected, and three alternatives were applied. The first alternative was to reduce the room sizes of the building. The second alternative was to replace the plaster painting with normal painting, and the last one was to replace painting up to 1.5 meters with 1 meter of the high of walls from the floor. Results approved that the implementation of VE has successfully reduced the cost of the project without compromising the quality of the materials. For the first alternative, 17.1% of the cost was saved. Regarding the second alternative, 69.8% of the total cost for ceiling painting was saved, and for the third alternative, 41.6% of the total cost of walls from the floor was saved. The findings of this research may serve as a guide for engineers, scholars, and constructors to reduce the cost of the building project. Keywords: project management, construction cost reduction, sustainable development, explanation building, function analysis 1. INTRODUCTION 1.1 Background of VE Quality, efficiency, longevity, and enhanced performance across the life projects are considered essential deliverables in a construction project, which can be strengthened by integrating 'sustainability' and Value Engineering (VE) concepts [1]. The society is developing in the direction of internationalization. In the construction market, its development must also keep pace with the international speed. Therefore, it is necessary to build a construction project engineering cost management information system that is compatible with the information age. Due to the design and implementation of the information management system, it can not only efficiently increase the quality of the work in the construction project cost cycle but also allow good use of knowledge and efficient management [2-4]. Value Engineering (VE) is an organized procedure to achieve the essential functions at the most minimal life-cycle costs predictable with required performance, reliability, availability, quality, and safety for a specific product. Value Engineering is a function-oriented approach that illustrates the ratio between "what you get" (function) and "what it costs" (source) as a description of the value. Accordingly, Value Engineering acknowledges that all contributing disciplines share the same understanding of functions provided by the item [5-8]. Value Engineering (VE) is a systematic method for advancing goods, products, or services values. It is known as the cost-to-cost performance, production, or lowering costs. Value Engineering was to be carried out in the new construction industry to ensure that an objective project or cost-optimized project is achieved. The VE has been used for half a century in the building industry in many countries around the world, despite different obstacles in order to deliver high-value projects on schedule and within budget [9-15]. Value engineering is a strong strategy for cost-saving and improving quality; in particular, the construction industry plays a major role in the global economy. Value engineering does not influence the cost reduction only, but also it is improved that value engineering has a positive impact on the development of varieties of constructions. Value engineering takes into account the initial as well as life-cycle costs of the construction projects. Value Engineering approach can be implemented on all the resources around us, such as water, energy, material life-cycle, etc. [16-19]. Value engineering (VE), also known as value management (VM) or value analysis (VA) is a systemic method for enhancing the value of objects of research. The production and management can be optimized by adjusting the function and cost of the research objects and by increasing the ratio of the function of the object to cost. Function and cost are the two crucial factors that define the value of research objects. The value of the object of research can be expressed as Eq. (1): =   (1) In the Eq. (1), V, F, and C represent Value, Function, and Cost, respectively. Depending on Eq. (1), In realistic cases, the importance of the research object can be increased from two International Journal of Sustainable Development and Planning Vol. 15, No. 7, November, 2020, pp. 1045-1057 Journal homepage: http://iieta.org/journals/ijsdp 1045