Value Engineering (VE) is a cost-optimizing technique used to analyze design quality and cost-effectiveness. The application of VE procedures to the design and construction of school facilities has been adopted by the state of Washington. This technical manual provides guidance in developing the scope and applicability of VE to school projects; in establishing standards of quality for VE studies; and in defining the level of effort required for successful VE studies. Information is supplied concerning the six consecutive steps involved in a VE study: (1) determining the need for a value engineering study, (2) modifying the design team's contract, (3) selecting the value engineering consultant, (4) negotiating the value engineering contract, (5) performing the value engineering study, and (6) submitting the final value engineering report. The manual contains three VE forms used to communicate between the office of the Superintendent of Public Instruction and the school district when value engineering is being contemplated or used. (Author/MLF)