What's your process for evaluating value engineering proposals?

1 Define the criteria

Before you review any VE proposal, it is essential to establish criteria that align with the project goals, specifications, standards, and budget. Additionally, you should consider the risks, benefits, and trade-offs of each VE proposal and how they influence the project stakeholders. Common criteria to consider are cost savings, quality, schedule, scope, and safety. Cost savings looks at how much money will be saved in the initial or life-cycle cost of the project. Quality examines how the VE proposal will impact the functionality, durability, aesthetics, or performance of the project. Schedule assesses how the VE proposal will affect the project timeline, milestones, or deadlines. Scope evaluates how the VE proposal will alter the scope of work, deliverables, or requirements of the project. Lastly, safety looks at how the VE proposal will influence the safety of workers, users, or environment.

2 Review the documentation

Once you have the criteria, you need to review the documentation of the VE proposal. The documentation should provide sufficient information and evidence to support the VE proposal, such as drawings, calculations, specifications, references, or samples. You should also check the accuracy, validity, and reliability of the documentation, and verify that it complies with the applicable codes, regulations, and standards. You should look for any gaps, errors, or inconsistencies in the documentation, and request clarification or correction from the VE proposer if needed.

3 Consult the experts

After you review the documentation, you may need to consult the experts who are involved or affected by the VE proposal. These experts may include the owner, architect, engineer, contractor, subcontractor, supplier, or consultant. You should seek their input, feedback, or approval on the VE proposal, and discuss any issues, concerns, or opportunities that may arise. You should also communicate and coordinate with the experts to ensure that the VE proposal is compatible and consistent with the other aspects of the project.

4 Analyze the impacts

The next step is to analyze the impacts of the VE proposal on the project. You should use quantitative and qualitative methods to compare the VE proposal with the original design or solution, and measure how it meets or exceeds the criteria. Additionally, it's important to consider any positive or negative impacts that the VE proposal may have on the project, such as technical impacts on structural, mechanical, electrical, or environmental systems; operational impacts on functionality, efficiency, or maintenance; aesthetic impacts on appearance, style, or image; social impacts on satisfaction, comfort, or well-being of users or stakeholders; and environmental impacts on sustainability, energy consumption, or emissions.

5 Make the decision

The final step is to make the decision on whether to accept, reject, or negotiate the VE proposal. You should weigh the pros and cons of the VE proposal, and consider how it aligns with the project objectives, expectations, and constraints. You should also document the decision and the rationale behind it, and communicate it to the VE proposer and the project team. If you accept the VE proposal, you should update the project documents, contracts, and plans accordingly. If you reject the VE proposal, you should explain the reasons and provide constructive feedback. If you negotiate the VE proposal, you should propose modifications or alternatives that can improve the VE proposal or address the concerns.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?