Value Engineering

Value Engineering is a process consisting of the systematic application of analytical, creative and evaluation techniques on a multi-disciplined basis to achieve the desired functions in a design or process while maximizing value and maintaining or improving required functions and decreasing cost.

Why does Value Engineering work?

  • All projects have unnecessary costs
  • Decisions are often made without knowing the cost impact
  • The design process focuses on expected solutions

Benefits of a VE Program:

  • Reduce cost while increasing function, performance and quality
  • Accomplish more projects for the same money
  • Validate that capital expenditures are appropriate for program needs
  • Validate planning and design decisions
  • Validate project costs

Common misunderstandings of VE:

  • Designers do it as a normal part of their design process
  • Design review locates errors
  • Used simply to cut costs when the project is over budget
  • The only reason to do it is because it is mandated

What projects are candidates for VE:

  • Projects with construction costs greater than $2 million
  • Projects with complex designs
  • Projects that are over budget
  • Projects with construction concerns