What is value engineering for construction estimating?

The idea of value engineering is considered in all projects. Some construction project may need to focus on this idea more greatly than other.

Here at Econstruct Consulting we pride ourselves on being able to perform functions of value engineering through our construction estimating knowledge, as well as understanding the full intentions of the project site, clients’ needs and architectural approach to enable value engineering that is in line to have your project move from design to construction.

How we look at the process of value engineering:

  1. DESIGN INTENT
    Understanding the true intent of the design and areas of the project design that have ability for change. We understand that there may be non-negotiable items. This may relate to number of rooms, bathrooms, opening styles, materials finishes and selection or the architectural intent for example.
    As estimators understanding this provide some boundaries for us to work to.

  2. BUDGET
    We know that true understanding of project budget can be a guarded secret by clients because this is seen as getting the most for the smallest price. Majority of projects, we work across we see that scope of works extends past budget intents. Making value engineering a more important aspect to the process.
    Having an accurate budget allows for one of the biggest constraints to be managed.
    As our services are completely independent, we are pricing based around what we see as the true mean value of construction industry costs.

  3. OPTIONS
    In our eyes understanding options is a great tool as knowledge is power. When working through value engineering we know that if someone doesn’t know the true cost for example, one cladding type to another, they may not understand what they could save or what they are aware they could be paying more for. Options enable a design team or client to make the decisions logically, based on values.

  4. CONSTRUCTION COMPARISONS
    As part of working through a large amount of projects year to year we come across generally all types of structure. This provides us with the structural knowledge to compare what we could see as valuable substitutes that won’t affect design intent. This may come through substituting to a construction method that has cheaper materials or less labour requirements, or sometimes it is a combination of both plus the further overall saving in project duration. All three of these working positively so the project has the greatest savings without changing the design intent.

  5. LOGISTICS
    Not every site is blessed with great access. This may be due to traffic, public paths, trees, powerlines, no driveway or low/high locality of the block, or even inaccessibility by road.
    Consideration of these may change how any of the above is considered. This may be from materials handling, through to installation access or due to authorities requiring permits, fees, traffic control for example. We consider all areas like an experienced builder would. All while considering the other outlined above.

  6. TAKEAWAYS
    Value engineering should not be the exercise of simply cutting the quality of finishes. This does play a part, however the execution of several of the above detailed value engineering areas forms part of a successful project service.

    This leads me to talking about when is it best for this to be considered.

    Working on paper is the simplest and cheapest solution for your client. So having some type of understanding of project costing through at least one pre-Council submission is important. This is the time when excessive additional cost and lost effort can be best managed.

    Refer to our website to see our Architect Services or Builder Services.

    We are always open to discussing your needs and how you may see construction estimating forming a better part of your business processes.
Written by
econstruct

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Send us your project and we will be in contact.

Need Help? Feel free to call +61 2 89857306, and we will be more than happy to answer all of your questions.