What is Value Engineering
Adding Value to each Project with VE
Getting the best value engineering is not always about cost savings. Let’s look at the dictionary meaning of value;
“to consider with respect to worth, excellence, usefulness, or importance.” Source
In construction engineering there are two parts to value; function and costs. An engineer may suggest alternate methods to complete the task at hand that
A) Add more functionality at little to no extra cost. An example of this may apply to an owner of a building. Typically owners have to pay the cost of heating and power. An engineer can suggest ways to reduce the cost of both by using a more energy efficient design. This benefits the owner of the building and consumers (if owner rents or sells units)
B) Reduces the cost of a project without sacrificing any functions. An example of this is foundation thickness. If soil pressure testing checks out, concrete (foundation) thickness may be reduced. This can save money on the material purchased to pour the foundation.
It is a system of organized procedural decisions designed to deliver more value to the project. The beneficiaries of value engineering services are clients, contractors, owners or end consumers. It has been an accepted engineering review & analysis practice since the 1940’s. In the 40’s the original concept was developed by General Electric Company to cut back on costs in a time of war (World War 2). VE is the acronym for this procedure although VEA (value engineering analysis) is also a recognized term.
How Does VE Work?
VE is a way of thinking
By following a process that includes several steps, engineers developed techniques for value analysis and engineering. For example a modern day system includes 8 steps.
- Preparation
- Information
- Analysis
- Creation
- Evaluation
- Development
- Presentation
- Follow-up
The goal of VE is to optimize the overall value of a project. VE may result in redesign of an alternative where schematics may require revisions to the original design plan. In construction a contractor may also benefit from an optimum VE plan. The techniques of value analysis and engineering have common guidelines as shown above but an engineer may add their own spin on a VE assessment. There is certification available for VE’s and often virtual environments are used to conduct testing for a proposed VE plan. Once testing is completed a change proposal is submitted against the original design.
Value engineers use a value formula as part of the value management process. A reduction of construction cost is generally the aim of VE for construction contractors. Engineers explain it as “finding a second right answer”.
Every engineering consumer should know more about value engineering, especially if the business is looking for the best bang for your dollar. Researching to find out the facts about efficient design and build is necessary in order to optimize your bottom line. If you are a condominium building owner your building will be much more appealing to consumers once VE is in place.
