A project should follow a schedule as much as possible. Why is this so? Delays in project completion can significantly impact costs because there is a need to cover labor costs and other incidents. With the national average construction costs rising by 5.28 percent year on year ensuring cost-effectiveness is a priority for all stakeholders.
However, engineers also have to deal with quality maintenance and resource management.
This is where the need for value engineering (VE) lies. It is a systematic method that transforms the approach to construction projects. With the concept, everyone, from clients to construction teams, can exercise cost reduction and at the same time increase the value of the project with its inherent quality.
Value Engineering: Its Essence and Principles
Although value engineering brings many benefits to the construction industry, it was initially intended for manufacturing during World War II. The concept works on the premise that achieving the best possible value involves an in-depth analysis of functionality.
Value engineering lies in your structured thinking process. It focuses on maximizing project value through the optimal balance between cost and function.
The concept follows principles designed to improve the decision-making process. These include:
Role-based methodology
This method allows the identification of alternative solutions to meet the necessary functions in an accessible way or with a greater value proposition.
For example, architects can do VE to re-evaluate the function of a building component, such as an HVAC system. VE may reveal that a different technology could provide the same comfort and air quality. This principle promotes innovation. This opens the door to exploring non-traditional methods and materials that construction managers might otherwise ignore.
Lifetime cost analysis
This principle refers to the holistic analysis of the construction project. The goal is to have cost-saving measures that do not inadvertently lead to increased expenses in the future.
Multidisc iplinary teamwork
The success of value engineering depends on the collaboration of a multidisciplinary team. Diversity allows the team to discover different perspectives and knowledge. When properly incorporated, it promotes an environment conducive to innovation because the contribution of each team member is valued and considered in decision-making.
Through teamwork , innovation is possible. For example, an architect can further refine the design vision for a building by discussing materials and structural techniques with engineers. In this case, they can achieve the desired aesthetic without compromising safety or cost.
How to Apply Value Engineering
See how to do value engineering throughout the project lifecycle:
Pre construction
Even before the project begins, VE teams must be aligned on project requirements, including budget and schedule. This step establishes the premise for value optimization.
For example, carrying out a needs analysis will give them a complete understanding of what the customer needs and expects. With this information, they can match it to the budget and check for discrepancies. Since they have the data, it will be easier to adjust and align costs or materials.
Schedule scrutiny is equally important. This process involves setting realistic timelines based on a detailed project analysis. They can make progress reports to keep track of deadlines.
Design phase
During the design phase, VE becomes a collaborative effort, often materializing through stakeholder sessions. The goal is to thoroughly examine construction materials and methods.
VE in the design phase includes getting all stakeholders to explore different design options. They would also discuss implications on cost, quality and sustainability. The process also includes evaluating the construction method to find less expensive or faster alternatives without compromising structural integrity.
Construction phase
Plans and projects are executed during the construction phase itself. VE analysis should identify potential savings and improvements during this phase. It must cover:
Cost monitoring: This is where teams analyze costs as the project progresses to identify potential areas of overspending and promptly implement corrective measures.
Flexibility and adaptation: Engineers and workers must be agile to adapt to unexpected challenges and, at the same time, focus on optimizing value. At this point, the usual challenges include material shortages or design modifications.
Post-construction
Value engineering doesn’t stop at project completion. Evaluating project performance provides valuable insights for future EV efforts. It is the ideal time to assess whether the entire construction team achieved the objectives set at the beginning of the work. At this point, teams also gain a comprehensive view of how processes contributed to the overall success of the project.
Construction Financial Management Value Engineering
In addition to value engineering principles, construction teams must also consider the efficiency of their financial operations. Better cash flow management plays an important role here, and integrating technology into financial management becomes invaluable.
Construction companies should analyze how digital financial tools improve their financial efficiency. This includes setting up online banking.
For example, they can apply for a checking account online . Some banks have apps that allow users to categorize their spending. Like the VE project, digital banking can also provide cost savings. They no longer need to drive to the bank to settle their suppliers or deposit their workers' payroll.
Adopt Value Engineering
Despite current challenges, value engineering brings operational efficiency at all levels. Teams can effectively apply the concept and overcome the complexities that plague the construction industry. At the same time, they can deliver projects without sacrificing quality or functionality.
Harness the transformative potential of value engineering to build a more efficient and sustainable future.
