When transforming the VM study subject's cost information, the potential for achieving major savings is:

Transforming cost information in a Value Methodology (VM) study involves analyzing and optimizing costs to improve value, often through cost models or financial analysis, as taught in the VMF 1 course (Core Competency #1: Value Methodology Overview). According to SAVE International’s Value Methodology Standard, “the potential for achieving major savings is greatest during the early phases of the project lifecycle, such as planning or conceptual design, when decisions about scope, design, and requirements are made.” This principle is based on the “cost influence curve,” which shows that the ability to influence costs is highest early in the project, before costs are locked in by detailed design or implementation. Applying VM early allows the team to make fundamental changes (e.g., rethinking functions or materials) that yield significant savings, whereas later phases (e.g., construction or operation) offer less flexibility and higher change costs.

Option A (Greatest during the early phases of the project lifecycle) is correct, as it aligns with VM’s emphasis on early intervention for maximum cost savings, as seen in Question 21.

Option B (Increased when the VM proposals improve performance) is incorrect because, while performance improvements can enhance value, the greatest potential for savings is tied to timing, not performance.

Option C (Enhanced when outputs are included in calculations) is incorrect because including outputs may improve analysis accuracy, but it does not directly address the timing of savings potential.

Option D (Improved when costs are aligned with scope increases) is incorrect because scope increases often raise costs, whereas VM aims to reduce costs while maintaining or improving function.