Value engineering - more than just cost-cutting.
Value Engineering (VE) was first conceived by a General Electric staff engineer during World War ll in an attempt to cope with skilled labor shortages and a lack of raw materials and component parts. Engineer Lawrence Miles noticed that some of the substitutes not only reduced costs but also resulted in a final product of greater value than before. He subsequently developed a methodical approach that could be applied to any manufacturing process to ensure value is maximized.
We all want to save money, but...
In today’s corporate environment of reduced budgets and staffing, everyone wants to operate as lean as possible. Developers are no different. They want their construction projects built in the most efficient, cost-effective way, without sacrificing the value of the finished product. Few developers or construction companies are going to be happy with a substandard finished product resulting from a short-sighted, singular focus on cost reduction.
Adding value is most important!
Finding ways to lower costs is always nice, but the objective of any value engineering program is adding real value to the overall process. Ultimately, cost savings may or may not be a major contributor to the additional value. For example, the developer may choose a more elegant façade if the construction company’s value engineering shows it can be done with little or no additional costs. The upgrade itself is what provides the additional value.
At Cleveland Construction, our value engineering process involves engaging critical trade contractors early in the preconstruction planning phase.
Our experience has taught us that the preconstruction planning phase offers the greatest opportunity to add value to a project. And the process we follow is a team effort.
A preconstruction lead is chosen, based on individual experience with the client’s desired project and business outcomes. This person engages project executives, project managers, and superintendents to assist in evaluating schedules, constructability, logistics, etc.
A critical step involves engagement of the right subcontractors early in the process. Their addition brings a fresh perspective to the project based on their professional construction experience. With a focus on value engineering, the subcontractors can recommend applicable solutions (learned from past projects) that they believe add value. Their suggestions help to maximize efficiencies and free up funds for allocation to other client-desired outcomes. The central goal is to deliver the best value for the client without sacrificing the level of quality or compromising the schedule.
Value engineering is in our DNA at Cleveland Construction. From the project start, our team of Architects, Designers, Consultants, Construction Managers, and Trade Contractors are focused on delivering the best value while meeting the client’s objectives. It’s part of our mission to Make It True®.
We can find out for you. Click here to contact our preconstruction team to find alternative solutions that can save your project money. We've helped our clients save millions of dollars by providing value-engineering options - and we want your project to be next. Click here to contact us.