Recently, the application of Value Engineering(VE) has become the center of industrial interest for an improvement of productivity and efficiency through a construction technology development, an advancement of project management and the removal of wasting factors in construction projects. In Korea, government implemented ‘technology development rewarding system’ to encourage cost reduction in construction phase like VECP(value engineering change proposal) in U.S. However, it hasn’t got intended result by analogy the fact that there are only 5 cases which has accepted and rewarded for over 10 years because it didn’t motivate the contractor and public owner properly.
So, this study deduced variables through antecedent research and survey of recognition and then analyzed the causes of problems in an integrated point of view by modeling feedback loop using system dynamics methodology. And then derived from the simulation, it proposed policy alternatives for boosting VE in construction phase by raising recognition degree of project participants.