How do you compare value engineering proposals?

1 Define your criteria

Before you compare any VE proposals, you need to establish criteria for evaluating them that reflect your project goals, scope, budget, schedule, quality standards, and stakeholder expectations. Cost savings, value added, technical feasibility, and risk impact are all common criteria to consider. Cost savings measure how much money the VE proposal will save compared to the original design or specification. Value added looks at how the VE proposal can improve the functionality, aesthetics, durability, or sustainability of the project. Technical feasibility examines how easy or difficult it is to implement the VE proposal in terms of design, engineering, construction, and maintenance. Lastly, risk impact evaluates how the VE proposal will affect the project risks in terms of safety, quality, compliance, performance, or liability.

2 Review the documentation

When reviewing a VE proposal, it is important to carefully review the documentation of the proposed changes and verify the accuracy and validity of the information provided. You should also check for any gaps, inconsistencies, or assumptions that may affect the reliability of the proposal. Consider asking questions such as what are the sources and methods of the cost estimates and calculations? How are value added and risk impact measured and quantified? What are the references and evidence for the best practices and standards used? Doing so will help ensure that you have a clear understanding of the rationale behind the proposed changes, their expected benefits and costs, and their potential impacts and risks.

3 Compare the alternatives

After you have reviewed the documentation, you can compare the VE proposals based on your criteria. To do this, you can use various tools and techniques, such as matrix analysis, cost-benefit analysis, and risk analysis. With matrix analysis, you can create a matrix that lists the criteria on one axis and the alternatives on the other. Then assign scores or ratings to each alternative based on how well they meet each criterion. Cost-benefit analysis involves estimating the present value of the benefits and costs of each alternative over the project life cycle. Risk analysis involves identifying, analyzing, and evaluating the potential risks and their consequences on the project objectives. By using these tools and techniques, you can determine which alternative is the preferred one.

4 Communicate your decision

Once you have compared the VE proposals and selected the best one for your project, you need to communicate your decision to the relevant stakeholders, such as the owner, designer, contractor, and end-user. You should explain the rationale and justification for the decision, as well as the implications and expectations for the project execution. It is important to use clear and concise language, avoiding technical jargon or acronyms. Additionally, provide supporting evidence and data for your decision, addressing any questions or concerns. Highlight the benefits and value of your decision while acknowledging any trade-offs or limitations. Seek feedback from stakeholders and encourage collaboration and cooperation. Comparing VE proposals is a critical skill for construction managers that can help optimize project outcomes and deliver value to clients and end-users. By following these tips, you can compare VE proposals effectively and make informed and rational decisions for your project.