How do you explain value engineering decisions to clients and contractors?

Over the years I’ve learned you need to be careful and not go too far with value engineering. It’s easy to end up with assemblies that are substandard compared to what was specified. It’s important to make sure you don’t void a manufacturer’s warranty by substituting components that are not like for like or listed by the applicable testing agency such as UL. I’ve also learned that you need to be careful when dealing with contractors, because they’re often trying to substitute a cheaper product or system and convince you that it’s the same quality or matches what was specified. Value engineering doesn’t necessarily benefit the client in the way that they want it to. Cutting corners can lead to premature failure and cost more in the end.

For value engineering first you need to understand client expectations in terms of cost, quality, technology and durability etc. Value engineering is a very vast scope and you need to be very careful while performing this task. Sometimes you might end up procuring something of substandard to save a small amount and it can hurt the project. Thus, first you need to do through or apple to apple analysis of products or services you are thinking or planning to opt as an alternative. Also, as I said before client expectations are very important. Sometimes, clients want premium service or products and this will not leave any scope for value analysis. So it all depends on client expectations and your research.

We only offer options and explain the benefits and drawbacks of each VE suggestion. The real villain in this process is the phrase ", or approved equal". There is often a disparity in cost between equals.

Value engineering decisions play a critical role in the success of construction projects, benefiting both clients and contractors. By applying value engineering principles, clients can achieve their project objectives while optimizing costs, and contractors can demonstrate their expertise in delivering cost-effective solutions.

In my experience, 'VALUE' is subjective to the Owner. The Owner has established their priorities and is counting on you to deliver according to those priorities. If it's a manufacturer, will following your recommendation provide cost avoidance or cost reduction? If it is a service agency, will this improve efficiency? How? And remember, 'VALUE' does not always equate to cheaper or less expensive on the front end. For example, people will spend a premium for high efficiency HVAC equipment in the expectation that their energy costs will go down while providing greater comfort to those in the work environment.

Based on my understanding, making Value Engineering decisions in the construction field isn't a straightforward choice. It's crucial to consider potential impacts on both clients and end users down the line. It's important to include a comparison between alternative options and the original design. Additionally, it's essential to highlight how Value Engineering plays a role in reducing costs while maintaining high quality.

The Project Manager should investigate the suggestions offered by the design professionals and experienced trade partners. And offer a list of alternates perceived to provide value to the client.

You also should involve your architect and engineers in the process. VE can effect design asthetic but it can also effect the functionality and performance of a building. If not properly planned and reviewed, as the article mentions, the trade-offs aren't always a cost savings. Not only should you be considering the short term effects of the costs you should also consider if a client has a long term hold on the building what the operatational costs are long term to make this change. VE is a multifacited excercise. Having an Owners Rep can help review all the pitfalls before costly decisions are made. We can help!

The Value Engineer imprives constructability and saving money. The client, consultant and the contractor need to involve in the stages of VE process; - Gathering information including alternative concepts and needs and - Analysis of function - Evaluation & Cost Analysis.

VE alternatives only have two possibly meaningful advantages to the client: initial cost reduction, and/or operational savings over time. We have not had an occasion to be directed by a client to find an alternative more durable, or higher in cost, than what was originally specified.

VE should benefit the client in cost effectiveness and the benefit to the project schedule as per time constraints. Lead times sometimes call for Value Engineering, sometimes structural design calls for it. I work with engineers if an alternative is called for. What is drawn up sometimes does not actually fit in the physical element of the project and a cost effective alternative is required. VE should be used if needed, but I agree that plans and Specifications should be adhered to at all times, and if VE is used it should be backed up with a professionals stamp of required.

The cleint and contractor wish to see the benefits of cost and constructability which saving money without reducing value of project for end users. We need to highlight the time consuming for VE method,design and the budget from initial tost, operation cost including maintennace cost.

It's strictly the client's decision. We offer our advice from previous projects and experiences, and the technical information provided to us by the engineers of record and manufacturers. Building trust and rapport is only attained after a successful project completion.

We should also consider the possible difficulties and disadvantages to the technique and frames. We may need to negotiate some concerns and feedback from your cleint and contractor if VE frames and techniques are stronger than traditional and more envirionmental friendly. You'll great opportunity and harmonious relationship with your client and contractor if they understand your VE method really benefits.

Except for major equipment, most products have limited warranties. It's difficult to track the long term benefits of systems and materials exposed to the wear and tear of varied experiences and intervals.

In my experience, the VE team will producethe proposal report for approval.Upon the approval, construction stage will commence. We also need to monitor and evaluate VE solution and outcomes essential to any project or program whether it makes cost control and maxime of the project value. It's difficult to monitor for maintenance cost of equipment and materials (pump, aluminum frame etc) which is subject to life expectacy and warrantry period.

In my experience I used to provide concrete instances of Value Engineering from comparable projects to demonstrate its practical application. I highlight scenarios in which alterations in material selection or design modifications led to significant cost savings without compromising the project's integrity.

VE requires asking specific questions. For instance, our architect specified a line of casework that was perfectly functional and within our target budget. More detailed questions on intended uses identified that the proposed line of casework was actually over spec’d. The same manufacturer had another line that more closely matched our needs and saved a substantial amount of money.