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. By using VE, the optimum value for every life cycle dollar spent on a facility is obtained by identifying not only initial costs but also operations, maintenance, and replacement costs. This paper outlines the contents of a manual to be prepared that would assist school districts to implement VE procedures in specific school facilities projects. VE is required for projects with a capital expenditure greater than $1 million in construction costs; its use is optimal on lower cost projects. A VE program requires four participants: the Superintendent of Public Instruction, the school district, the design architect/engineer consultant, and the VE consultant. Their tasks and compensation are discussed. The information required for VE analysis are also listed, including, in general, program design requirements and criteria, the site plan, floor plans and other drawings, descriptions of building systems, an outline of materials specifications, and a cost estimate. The paper closes with a list of possible conflict areas, a glossary of VE terms, and a bibliography. (MLF)