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.