Value Engineering in Construction
Value engineering applied in commercial construction has enormous benefits for contractors and developers alike. The multi-step process is an integral part the process and is ultimately focused on increasing value for a project. Specifically, the goal of value engineering is reducing the cost of a scope of work, oftentimes for projects that are over budget. Most commonly this is done by offering an alternative means without compromising the end product or evaluating the life cycle cost to create savings over a longer period of time.
A TEAMWORK FOCUSES PROCESS
The basic premise behind the formal value engineering process is teamwork. Owners and/or developers, designers, contractors, and consultants must work together as a team to achieve the ideal outcomes.
Often, the formal value-engineering process takes place in a structured workshop focused on five phases:
Information Gathering
Functional Analysis
Creative Brainstorming
Analysis
Recommendation
Information Gathering is the simply the initial briefing by project teams to ensure all parties have a comprehensive understanding of the project requirements and design, the status of the budget and schedule, and potential constraints or blockers. Functional Analysis focuses on evaluation of the project's functional requirements within budgetary limitations. Creative Brainstorming is where the team ideates options for value engineering, keeping in mind the functional requirements of the project and working to ensure no undue compromise on output. Analysis is the phase where creative ideas are expanded upon to identify workable solutions. Analysis of each idea should include evaluating impacts and costs, as well as feasibility and value received. Ultimately the Analysis concludes with ranking each idea based on these factors. Finally, the Recommendation is made via a formal report detailing the value-engineering proposal, expected savings, and value results.
The Benefits
For a project over budget value engineering process is a necessity. The focus should be on reducing project costs, as mentioned above, without degrading value or making unnecessary compromises on the final product. For a project that is within budget the value engineering process can still be beneficial. In these instances, the emphasis is still on improving value but the focus is often on longer term goals around the life cycle of a project or building, ongoing operations, and quality.
Value Engineering in Action
At Green Heart Enterprises the value engineering process is viewed as a structured and creative process, often ongoing, that ultimately helps with reducing the cost of a specific scope. This process requires strong communication from both the project team and the developer/owner to achieve the end result.
Our experience with value engineering is an important aspect of our approach to project management. Contact us today to work with our experienced team.