Is Design Management simply another part of Value Engineering?

The question of whether design management is simply another part of value engineering in the design and construction process is an important one that requires a critical examination of both sides of the argument.

On one hand, proponents argue that design management can be seen as a subset or component of value engineering. Value engineering primarily focuses on maximising the value of a project by identifying and eliminating unnecessary costs while maintaining or enhancing functionality and quality. In this view, design management is responsible for coordinating and overseeing all aspects of the design process to ensure efficiency and effectiveness. It is argued that design management, when done effectively, contributes to value engineering by optimising the design to meet project requirements within budget constraints.

Advocates of this perspective emphasise that design management is crucial in driving innovation and creativity, both essential for achieving maximum value in construction projects. By managing the design process, professionals can coordinate with various stakeholders, such as architects, engineers, and clients, to ensure that their expertise and input are integrated effectively. They argue that this collaborative approach leads to solutions that are not only cost-effective but also aesthetically pleasing and functionally superior.

On the other side of the argument, some believe that design management should be considered a distinct discipline that goes beyond value engineering. They point out that while value engineering primarily focuses on cost reduction, design management encompasses a broader range of activities. These include strategic planning, risk assessment, process optimisation, and team management.

According to proponents of this viewpoint, design management is responsible for identifying and articulating project goals, ensuring design integrity, and aligning the design with the organisation's overall objectives. It involves managing the entire lifecycle of a design project, from inception to completion and even beyond. By doing so, design management aims to create tangible and intangible value for all stakeholders involved.

Critics of the idea that design management is just part of value engineering argue that viewing it solely through the lens of cost reduction undermines its potential benefits. They assert that a design management approach can drive long-term value by prioritising sustainability, user experience, and innovation. Emphasising these aspects can be instrumental in creating projects that meet project requirements and budget restrictions, exceed expectations, and deliver overall value to clients and users.

In conclusion, the question of whether design management is merely a part of value engineering depends on one's perspective. While proponents argue that it can be seen as a value engineering component, focusing primarily on cost optimisation, critics believe that design management encompasses a broader range of activities that aim to create value beyond cost reduction. Both arguments have valid points; ultimately, balancing cost-effectiveness and the end product's overall value and quality is essential.

At Projective DM, we firmly believe that good Design Management and project success go hand in hand. We understand that Design Management is vital in ensuring that projects meet their goals and incorporate value engineering from the beginning. By implementing Design Management early on, we can align the design with the budget and client expectations, preventing costly redesigns and documentation later in the project.

A recent example of our expertise in action involved an apartment proposal that had completed the Tender Documentation phase. Unfortunately, the latest construction cost estimates came back significantly higher than the feasibility budget, nearly 20% higher. This presented a major problem as the client had made it clear that the project couldn't proceed at these costs.

When we were brought in, we immediately started evaluating the tender documentation packages, seeking out opportunities for value engineering. Through discussions with the client, it became apparent that the profit margins on the one-bedroom apartments were minimal. This crucial insight, however, had not been flagged, and there was no design manager on the project, which we see as an oversight. Defining the apartment mix and considering its financial viability should have been addressed much earlier in the project timeline. With proper design management, this cost overrun could have been avoided altogether.

This resulted in a reasonable redesign of the project to update the apartment mix and incorporate many of the value engineering strategies we had developed with the team to save the project 18% in construction costs and increase the yield.

At Projective DM, we understand that every project is unique, and we are equipped to save you money, minimise risk, and help create a more profitable, buildable project. Regardless of the stage you are currently in, our team is committed to delivering exceptional design and value management expertise that will drive project success.

Gareth Barrett - Managing Director - Projective DM