In the world of commercial real estate, every dollar counts.
With so much at stake, developers and builders must look for every opportunity to reduce cost without compromising quality. Value Engineering (VE) has been recognized as an effective strategy that increases project profitability while maintaining function. In this blog post, we'll discuss what Value Engineering is and how it can help you save time and money on your next construction project.
What is Value Engineering?
Value Engineering is a concept that is utilized in many different fields of design and construction. Value Engineers aim to improve or add value during the entire life cycle of a project by eliminating wasteful expenses and practices. It must be stated that Value Engineering is not just about reducing costs; it is also about improving quality. Value Engineers search for ways to reduce expenditures on non-value-added activities and work closely throughout all phases of projects trying to create the most value for a client. Most times however, they're often most heavily involved in planning stages when the biggest savings opportunities exist.
There are many reasons why a process such as this becomes necessary: projects with too much scope creep, change requests, or new requirements added at different points during a project all increase costs such as labor, material, and overhead. These increased costs often result in higher overall product prices, longer delivery times, or even missed deadlines. Value Engineering works by targeting those elements that add cost to a construction project but do not contribute to the end product.
The Phases of Value Engineering
All Value Engineering projects involve four phases: Planning, Value Analysis, Design, and Implementation.
: Value Engineers establish goals for the project and decide which value metrics will be used to measure progress. They also develop time estimates for each phase of the process.
2) Value Analysis
: Value Engineers review the budget, analyze the designs, investigate any identified problems, estimate costs of material substitutions, look at alternate value engineering methods.
: Value Engineers develop design options for overcoming the problems identified during value analysis, make cost estimates for each option, and plan value engineering implementation procedures.
: Value Engineers recommend changes in materials and construction methods that will be the most economical and bring about a satisfactory solution to problem areas in order to meet the established value goals.
The Benefits of Value Engineering
There are several benefits to using value engineering techniques, which include:
1) Reduced Costs
: Perhaps the biggest benefit of Value Engineering is the potential for reduced construction costs. Value Engineers can identify and implement cost-effective replacements that deliver comparable value to what was originally planned
2) Improved Quality
: Value Engineering can also lead to improved quality in construction projects. When Value Engineers are involved in a project, they focus on ways to improve quality while still keeping costs down. This often leads to better designs and more efficient construction processes.
3) Time Savings
: Value Engineering can also help save time during the construction process. By implementing Value Engineering techniques, you can avoid delays and get your project done on schedule.
4) Improved Communication
: Another benefit of Value Engineering is improved communication. When Value Engineers are involved in a project, they work with the design team to make sure everyone is on the same page and understands what is needed. This can help avoid misunderstandings and delays.
5) Improved Coordination
: Value Engineering can also help improve coordination between different parts of the construction project. By working together and keeping communication open, value engineers and the design team can deliver a more cohesive final product.
6) Process Improvement
: Value Engineering is also a great way to improve overall project processes and procedures and lay the groundwork for future projects. By using Value Engineering techniques on one project, you can develop new ways of completing construction projects efficiently in the future
The Importance of having a Project Manager Who Understands Value Engineering
Simply put, if you want to maximize your project investment, it is essential to have a Project Manager
who understands and embraces Value Engineering principles. Value Engineers must be able to balance the factors of cost and quality to find the most optimal solution for any project. Project managers who understand and employ Value Engineering principles can save their clients time and money on their construction projects. Value Engineering analysts often work closely with architects, engineers, and contractors in order to optimize projects early on in their design phase by identifying elements within the scope of the project itself which they believe are unnecessary for achieving full functionality of the completed structure. This could include things such as excessive ornamentation, certain materials, or construction methods that may not be necessary.
Why You Should Hire a Value Engineer for Your Next Construction Project
By hiring a Value Engineer, you can rest assured that your construction project will be completed on time and within budget. Value Engineers are expert negotiators who establish win-win solutions for your construction project.
If you need guidance on this important aspect of design or construction, reach out to our team today for more information about how we can help! We’ll guide you through every step until they have helped ensure that your design meets all required specifications.
We look forward to chatting with you about how we can assist with your next project!