Value Engineering in construction is a good approach to cut the project expense. However, it is not only about reducing the overall budget; the focus is also on the functional aspects. This process helps to rely on alternative designs and materials. That is why the quality of the project is not compromised. This procedure is applied during the design phase. Well, this approach helps contractors and building owners optimize cost and deliver the desired results.
In this expensive and unpredictable construction industry, you need to understand the importance of saving budget through advanced methods. Fluctuations in material prices and other challenges have made construction jobs quite difficult. That is why contractors outsource Construction Estimating Services from reliable companies. This way, they achieve what they want without compromising the quality.
READ OUR BLOG TO UNDERSTAND THE MEANING OF VALUE ENGINEERING IN CONSTRUCTION PROJECTS AND HOW IT CUTS COSTS!
Understanding Value Engineering in Construction
Value engineering’s meaning is simple. Contractors want to reduce their project cost to complete the work under budget. Plus, they also want to save their budget for other work. This process is carried out by experts.
They analyze:
- Project components
- Processes
- Materials to find the best solutions
- Function-to-cost ratio
All the factors are considered, and then the project members decide what to do.
Key Principles of Value Engineering
1. Function-Oriented Analysis
The Society of American Value Engineers International shows that value engineering is an organized method. Its purpose is to make the job perfect. The main focus is on the item required.
2. Value Maximization Formula
Value in construction is defined by this formula:
Value = Function ÷ Cost
This means value can be increased by:
- Improving function while maintaining the same cost
- Maintaining function while reducing cost
- Improving function while reducing cost
3. Quality Preservation
Value engineering is also used to increase the value of the building. It is increased by choosing the material alternatives and improving the quality at the same price. It is better to get professional Material Takeoff Services and apply the best methods to save budget.
4. Collaborative Team Approach
Value Engineering Strategies also provides problem-solving solutions to meet the project objectives. This method is successful when all the project members are together at one point.
5. Safety First
The design team must never compromise on safety. If some change breaks the rules or puts people in danger. The members say no to that immediately.
The Value Engineering Methodology
Information Gathering
The project team gathers all necessary data related to the project. The data includes:
- Specifications
- Design plans
- Budget information.
The purpose of this method is to understand the project objectives clearly.
Function Analysis
Function analysis provides information about the project components. The team members analyze every element and look for the best ways to achieve the same results.
Creative Phase
This phase is also important to implement new methods to develop the project. That includes the implementation of new ideas and ends in applying the best processes.
Evaluation Phase
This phase evaluates alternatives against the project scope, such as:
- Cost effectiveness
- Technical feasibility
- Impact on schedule
- Quality implications
- Long-term maintenance considerations
- Environmental impact
Development Phase
The project estimates must be detailed, and the cost of every unit must be mentioned. The ideas that are selected are implemented with the best analysis.
Implementation
The approved value engineering processes are then implemented. This includes the use of changes in the project design. However, it is important to monitor the progress.
Professional estimators provide expert construction cost estimation to busy contractors and builders. They apply the right method to cut the overall expenses.
Examples of Value Engineering Success
1. Port Canaveral Cruise Terminal
During the design phase of the new cruise terminal at Port Canaveral, Brevard County, Florida, value engineering saved a great deal during construction. During this phase of the project, Ivey’s Construction Inc. garnered the 78.98 million dollar construction project awarded during this phase in January of the year 2019. The construction project also earned Ivey’s value engineering during the construction phase.
Port value engineering designed the garage construction such that construction costs were lowered by 4.70 million dollars. Construction of the support piles was redesigned to save over 3.5 million dollars.
Adjustments of the pile’s design and number, as well as the coating, were made to control the costs of the project and avoid compromising the engineering and construction design of the project.
2. Bregana-Zagreb-Dubrovnik Motorway, Croatia
During the construction of the Bregana-Zagreb-Dubrovnik Motorway in Croatia by the BECHTEL–ENKA joint venture, value engineering practices were also implemented, and these were also successful. Overall, 43 million dollars and 12 months were saved. This provided the builder company with 6 percent savings on costs.
3. Libyan Educational Buildings
As part of the reconstruction plan, the Libyan Government decided to construct 1,500 schools. In this particular case study, value engineering was applied to the budget for the Model 15 School in Al-Khums City for optimal budget utilization. The savings ranged between 20% and 30%. It leads to cost reduction in the overall project.
Conclusion
Value engineering is more than simply reducing the project cost. It is a detailed method in which the whole project is analyzed. The experts review each element and then provide alternative options under the budget. This helps to make the right decisions that enhance the overall building value. Make sure to apply the right strategies and save the overall project expenses.
