The main aim of this research is to develop a Value Engineering methodology (VE) that leads to reducing cost and/or improving the performance of housing projects for low-income people in an applicable way that local professionals can understand and apply. The methodology is anticipated to help Palestinian Institutions in performing low-cost housing for people of low income in the Gaza Strip. International agencies engaged with emergency re-housing programs may benefit from the methodology as well. This in turn contributes in utilizing the limited financial resources allocated for housing to serve a larger number of beneficiaries as well as improve the housing projects. To achieve this aim, the researcher developed models to serve the application of the methodology and applied the methodology on a case study for further clarification of the methodology. The publications of famous experts and institutions as well as the experience of other countries in Value Engineering were reviewed. Local implementing institutions in the construction sector and local professionals were approached to assess the state of the art of knowledge of Value Engineering and to benefit from local professionals’ expertise to enrich the research.

The methodology developed is composed of three main stages. The first stage is the Pre-Workshop of Value Engineering aiming to collect as much information as possible and clarify the project to the VE team in addition to the preparation of models to be used in the second stage. The second stage is the Workshop stage which is the core of the Value Engineering study and it is composed of five phases, Information, Functional Analysis, Creativity, Evaluation and Presentation phase. Such a sequence of the methodology is expected to assist in the logical and systematic flow of the process to achieve the targets of the VE study. The third stage is the Post Workshop where recommendations of the VE study are implemented and feedback regarding the results and the impact of the implementation of VE recommendations is performed to the parties in concern for future benefit. A real-life case study was studied and the methodology was applied where improvement of the project and cost saving of 17% was achieved and the study results were sent to the owner of the project for benefit. The developed methodology forms a first step towards applying VE in Gaza Strip and it can easily be adapted to serve other sectors like infrastructure. The researcher recommended applying VE in Gaza Strip for its benefits and recommended further research in addition to the qualification of professionals in VE.