What is Value Engineering & How Does it Benefit You?
September 13, 2018
What is value engineering?
Value engineering is system of design management intended to maximize the value of your construction or renovation project. In this context, “value” refers to function divided by the costs of development.
“Value” can be defined differently according to your specific industry. For example, maximizing value for a construction project in the healthcare industry would require different design, functionality, and budget objectives than building a law firm, an educational building, or an airport.
Value engineering ensures that your project achieves maximum functionality and quality without excessive and unnecessary overhead costs.
What value engineering is NOT: A way to cut corners and cut costs.
Value engineering is often mistaken as a way project managers can slash costs and boost profit. While proper value engineering can save you money over the course of your construction or renovation project, the end goal should be to provide the highest quality and greatest functionality at an attainable price point. Your project manager should never sacrifice quality, reliability, or performance in order to lower the price tag.
The value engineering process:
- Information: This is where the project and design management team gathers the details about your project’s objectives, demands, and customized definition of value.
- Speculation: Your team brainstorms potential options for minimizing upfront and lifecycle cost while maximizing function.
- Evaluation: The team will revisit the ideas pitched during the speculation phase and determine which suggestions are viable, efficient options for the final draft of your project plan.
- Development: With the guidance of the project manager, your team will develop the best ideas from the evaluation stage into actionable proposals.
- Presentation: Finally, the project management team will present their proposal to you, potential users, and the project designers for approval. As the client, you’ll be able to choose which value engineering proposals best meet your budget and functionality needs for your project.
Partner with a construction company with experience across a variety of industries to get the most of the value engineering process.
The highly specific demands of various industries can cause project costs to rise quickly and exponentially, leaving construction clients feeling torn between what they want and need from their facilities and what their budget will feasibly allow. This is particularly stressful when designing and building healthcare facilities, as the design and construction demands can impact people’s treatment, recovery, and overall wellbeing. Inefficient design of an educational facility can inhibit learning. Cutting corners on an aviation project can jeopardize travelers’ and pilots’ safety, and leave you subject to federal disciplinary action from the Federal Aviation Agency.
Each industry has its own unique demands and risks. Value engineering allows project managers to offer you a project plan that meets your needs without cutting quality, jeopardizing your reputation, and inhibiting functionality, all while being considerate of your project budget.
On top of general construction and design-build experience, Hayco Construction has extensive experience in project management, value engineering, and facility design, renovation, and construction in the following industries: