How Value Engineering in the Initial Stages Can Improve Construction Project Outcomes

There is so much story behind the construction of a commercial structure, and not many know how important the work of an engineer is in creating, improving, and protecting the infrastructures and building structures that make up a community. Construction management is a vital task in engineering, and modern efforts are geared towards making this economical and efficient, not only for the workforce but the owners as well.

Whether it be an industrial construction or a building renovation, planning for any project involves a carefully laid out and detailed project design. This contains everything, from the technical to financial details, and projections that coincide with construction objectives. A well-devised project plan will have maximum functionality at a practical cost. For this, many developers opt to utilize Value Engineering as a construction technique during the early stages of construction.

Let’s understand the concept in detail.

What is Value Engineering in Construction?

Value Engineering is a systematic and teamwork-based (and sometimes called creative) method to increase services and products’ value. This goal is met by examining the function and manipulating both functions and cost to up the value, which is defined as the appropriation of function to cost.

There are a few reasons why developers prefer value engineering in construction projects—some infrastructure tends to age, making some aspects like style or practicality obsolete. Value engineering ensures that these are designed to meet the specific lifetime it is projected to last. This means that unnecessary costs from products that do not extend the lifespan in any way are not incorporated into the project.

In effect, value engineering provides the greatest value for clients by maximizing function while minimizing the cost of the project.

Why Value Engineering Should be Applied in Initial Stages of Construction

Value engineering is a process that is best applied during the early stages of planning and design because it presents a good picture of what steps should be taken to maximize a structure’s function. For example, it is economical for a company to apply a simpler, cheaper design for a flooring structural system, provided that the materials give the same performance as the high-grade options. This is where value engineering comes into the picture—the team involved in the creative process determines the best alternatives at a fraction of the cost.

There is a process in value engineering termed the “workshop,” which is a key step to be taken during the construction project’s designing phase. The construction companies assign a project team tasked to assess the proposal and perform a facility functional analysis and consider the owner’s value definition. They will then define criteria for the construction project and provide alternative solutions based on the data collated.

Value planning, or the application of value engineering in the design phase of projects determines the design progress that the team should take to improve value. This will also determine the conceptual design to be followed.

Benefits of Value Planning in the Early Phase of Construction

1. Creative Perspective

Performing the workshop and ensuring that value planning is in place potentially improves the results. This also provides a fresh creative perspective to the proposed project without having to sacrifice schedules or costs in redesigning. For example, value engineers can design new parts with excess material that gets wasted during production. Small alterations in the manufacturing and assembly processes can lower material usage and enhance product quality.

2. Alternative Solutions

If value engineering is performed during the planning stages of the project, then the Contractor will be able to offer clients alternative solutions that will later seamlessly fit your project. Evaluating current market trends, building contractors will suggest cost-effective materials and equipment. In short, they can better identify opportunities to lower overhead expenses and enable clients to make informed purchase decisions.

3. Prevents Change Orders

Value planning demands extra preparation upfront, it will save you from expensive change orders that can eventually delay your project’s schedule. Not only it mitigates risks by preventing costly mistakes but also helps to plan for any potential challenges.

4. Fosters Team Interaction

It also provides an interactive ground for both client and construction management where they can discuss the details of the project and come up with a plan that works for both parties. This team approach allows every party to communicate their ideas and concerns regarding value-for-money materials, resources, budget, and schedule for the project.

5. Smooth Process

Using real-world data, value engineering allows commercial contractors to make appropriate decisions for their projects quickly. The owner also generally experiences increased satisfaction because the project implementation tends to go smoothly with lesser delays and changes.

6. Supports Project Management

Value engineering is now considered an effective project management method that supports the building lifecycle from start to finish, covering all important aspects of the project. It is considered a green building method that lowers the environmental impact and carbon footprint of construction, such as waste management, pollution control, and water treatment. This is to say that value engineering is an inclusive technique that considers environmental and social outcomes.

7. Widely Applicable

Value engineering is generally beneficial for any project and is widely used for its practicality. Construction firms see this technique as a positive addition to any project development and construction because it greatly improves value and benefits the end client.

5 Steps in the Process of Value Engineering

A survey of about 10,000 construction professionals listed “uncontrolled value engineering” as one of the biggest risks in the construction process. Hence, it is paramount for developers to follow a data-driven process that involves team collaboration.

Value planning has five important steps that can be applied to commercial construction projects:

Step 1 – GATHERING INFORMATION. After assembling the project team, all information on the whole construction project is collected; this includes the objectives, criteria, and value as defined by the owner. This is essentially the first part of functionality analysis—to generate the project’s initial idea as envisioned by the client.

Step -2. MAKING SPECULATION. The team would then carefully study the data and discuss possible alternatives to minimize initial costs as well as lifecycle costs. They would also inspect functionality and brainstorm ways to improve it.

Step 3. PERFORMING EVALUATION. Each alternative solution is then evaluated in terms of feasibility. In this stage, some ideas are discarded, while others might be kept as part of the outcome.

Step 4. DEVELOPMENT. After the crucial evaluation phase, each idea is then developed into proposals that can apply to the project. In the proposal, the pros and cons of each idea are discussed and the cost that might come with it.

Step 5. PRESENTING FINDINGS. The team will then arrange the final presentation, both in formal writing and oral presentation, to the people involved in the construction project, including the end client. In this stage, the owner can choose which proposals they deem necessary for their project. Their basis would be the cost and function comparison included in each proposal; the key is to accept the feasible ideas that reduce costs and improve the building’s value.

Value Engineering Case Study

Whitefield Solutions, San Francisco, California

Challenge – Whitefield Solutions is a medium-sized IT company specializing in software development and IT consulting. The stakeholders are planning to build their new office branch in the city of San Francisco, California. The brief for the commercial contractor was a glass facade with steel framing, advanced security measures, and energy-efficient infrastructure. Unfortunately, the initial cost estimation exceeded the allotted construction budget, and hence, the builders decided to opt for value engineering practices.

Solution – The hired contracting firm identified opportunities for cost savings and value enhancement in the project.

• Instead of a full-fledged glass facade, they used a combination of high-performance glass panels and aluminum framing for developing the building’s facade at much lower prices.
• The project team utilized steel framing for load-bearing areas of the building, for example, the central core and the corners. For the remaining portions of the structure, they employed cost-effective reinforced concrete.
• For the incorporation of advanced security measures, the commercial contractor took the guidance of IT experts. The team finalized an integrated security system that accommodates physical access control, biometric authentication, and cybersecurity protocols. These tech solutions also helped to eliminate long-term security maintenance costs.
• To increase the energy efficiency of the office property, the general contractor and their subcontractors sourced energy-saving lighting fixtures (LEDs and CFLs), motion sensors, and smart HVAC control systems. They also installed solar panels to lower the commercial building’s reliance on power grids.

Results – By implementing effective value engineering solutions, the construction company successfully built a modern, safe, and sustainable office building. Despite the client’s unique requirements and budget limitations, the project team was able to reduce the construction costs while still aligning with the company’s design aspirations. As a result, the owners of Whitefield Solutions were satisfied with applied value engineering techniques and thus, the project was deemed to be a success.

Conclusion

Value engineering is a key planning technique that provides multiple benefits. It is both systematic and creative and fosters a better relationship between the client and the project team. It’s a different take on planning construction projects that widens knowledge of the project and, by extension, construction know-how. This not only progresses the quality and quantity of the construction project but also builds a solid camaraderie between parties.

Constructive Solutions, Inc. provides outstanding value engineering services for a diverse range of commercial construction projects across the San Francisco and San Jose regions.

Get in touch with us to discuss your requirements.

FAQs

How do I know Value Engineering is right for my construction project?

Whether value engineering is right for you depends on your construction project and its unique objectives. Value engineering can be applied to a wide range of commercial construction projects, and is used to maximize a building’s performance at the lowest cost. Consult your general contractor about the scope of practicing value engineering for your project.

What are the risks to be mindful of while opting for value engineering?

Value engineering may involve the following risks that one needs to be mindful of:

• Designers considering alternative solutions at the component level instead of considering the building as a whole.
• Not involving the entire project team (clients, contractors, architects, engineers, etc.) in the value engineering process may lead to future problems.
• Disproportionately cutting down construction costs of the project without thinking of long-term value.

What is Optimum Value Engineering (OVE)?

Optimum Value Engineering (OVE), also known as advanced wall framing is a framing technique designed to reduce the quantity of lumber used and waste generated in the construction of a wood-framed building or structure. As a green building technique, OVE reduces material usage and labor costs while increasing the efficiency and performance of the building.

Relevant Resources:

• What is Value Engineering? and Advantages of Using Collaborative Approach
• Value Engineering in General Contracting Services