Value engineering is one of the many ways quantity surveyors can help cut construction costs and ensure projects come in on or under budget. It’s all about finding the balance between function and cost to maximise savings while delivering a high-quality project. This kind of nuanced understanding only comes with a wealth of industry experience, which is why a quantity surveyor’s skill set is valued so highly. In this article, we’ll be using the expertise of our quantity surveyors in London to introduce you to value engineering and explain how your construction projects can benefit from it.
Your Guide To Value Engineering
Value engineering is relevant in a wide range of industries because, in its simplest form, it is finding the best value-for-money solution to a project. Coined in the early 1940s, value engineering has been helping many of the world’s most successful organisations maximise their efficiency for decades. So, if you’re looking to reduce costs, increase profits, and stay ahead of your competitors, keep reading.
- What Is Value Engineering In Construction?
- Advantages Of Value Engineering
- Ten Examples Of Value Engineering
What Is Value Engineering In Construction?
Value engineering has been central to some of the UK’s largest construction projects, including Gatwick Airport and HS2. It’s saved homeowners, developers, and shareholders millions in construction costs by promoting the substitution of materials and methods with less expensive alternatives. However, value engineering isn’t about choosing the cheapest option wherever possible. Instead, it involves cutting unnecessary expenditures without sacrificing the quality of the build.
The value engineering process involves a large amount of critical thinking. It’s systematic and meticulous, ensuring that each construction element is as cost-effective as possible. Value engineers often break it down into four steps, allowing them to identify areas that need improvement and implement their ideas.
1. Information Gathering
The value engineering team will review project documents, conduct site visits, interview stakeholders, and collect any information regarding the project’s requirements, objectives and constraints. The aim of this stage is to develop a comprehensive understanding of the project’s scope.
2. Creative Phase
A team of professionals from all areas of the industry, including architects, engineers, and contractors, will devise solutions to optimise the project’s value. This range of expertise can be used to develop a wide range of solutions.
3. Evaluation Phase
The project stakeholders will review the proposed changes and determine their impact on the project. The proposals must align with the project’s goals and add to its value.
4. Implementation Phase
If the proposals are approved, the value engineering team will develop a plan for implementing the recommendations and outline the resources needed to do so. They’ll ensure their ideas are established correctly and monitor the progress, making any necessary adjustments.
Advantages Of Value Engineering
Value engineering can enhance the outcome of a construction project in a variety of ways. Alongside the obvious cost benefits, re-evaluating the methods and materials used in a construction project can open the door to a host of improvements that wouldn’t have been accessible otherwise.
- Cost Reduction: Value engineering is among the most effective ways to significantly reduce costs mid-project. The solutions could help streamline construction processes, reduce labour costs, and minimise waste.
- Increased Functionality: Refining the design and materials used can help the project better meet the end-user’s needs and improve build quality.
- Time Savings: It often reveals ways to streamline the construction process and deliver the project ahead of time, helping reduce labour costs. Not only this, but the analysis can address any issues early to prevent problems further down the line.
- Risk Mitigation: Re-evaluating the construction methods will help implement safer practices and guarantee compliance with building regulations.
- Environmental Benefits: Value engineering can help place more of an emphasis on eco-friendly and sustainable construction methods. During the creative phase, engineers often suggest more energy-efficient processes to help cut costs.
- Stakeholder Satisfaction: The evaluation phase ensures stakeholder satisfaction and helps deliver a project that meets or exceeds the client’s expectations in terms of cost, quality, and functionality.
- Long-Term Value: Value engineering doesn’t just focus on initial costs; it also considers the total cost of ownership. This leads to better long-term investments and less maintenance.
Ten Examples Of Value Engineering
Quantity surveyors and other construction professionals have developed a variety of value engineering methods to help improve project outcomes. Each of these tried-and-tested methods has delivered results for countless construction projects in the past, but it takes an innovative and experienced value engineering team to implement them effectively.
Material Substitution
One of the easiest ways to cut construction costs is to replace an originally specified product with a cheaper alternative – this is called material substitution. One of the most common substitutions in the construction industry is replacing steel with aluminium for a significant weight reduction and corrosion resistance, resulting in long-term savings. Value engineering expertise is essential for material substitution because inappropriate substitutes can be hugely costly.
Construction Techniques
The methods of contractors and the construction team will be analysed to establish whether anything is inefficient or wasteful. Those in charge of value engineering will often look for ways to make construction easier, reducing on-site labour costs. A common technique used to streamline the project is modular construction. Modular construction involves building sections of the project off-site in a controlled environment, enhancing quality control and reducing weather-related delays.
Design Optimisation
This method of value engineering involves redesigning a building’s framework to optimise its cost-efficiency in terms of functionality, aesthetics, ergonomics, and sustainability. Often, the structure will be simplified to use fewer materials without compromising strength. One way a design can be optimised is by standardising its components. For example, using a uniform size for all windows and doors will help reduce custom fabrication costs.
Energy Efficiency
Improving energy efficiency helps with initial construction costs and improves a property’s long-term investment value. Implementing higher R-value insulation materials to reduce heating costs and LED lighting instead of traditional bulbs are common ways to improve energy efficiency.
Waste Reduction
Value engineering teams reduce costs and the project’s environmental impact by maximising material usage and minimising waste. This may involve recycling construction materials or using software to help establish the precise amounts needed for the build.
Regulatory Compliance
Often, a large portion of a project’s budget is spent on costly revisions to conform with building codes and regulations. That’s why value engineers will conduct early and integrated design reviews to help minimise the risk of these costs as construction progresses. If permissions and approvals are needed, they’ll work with regulatory agencies to streamline the application process and reduce delays.
Water Efficiency
Similarly to energy efficiency, value engineers will look for ways to make the most of their water usage, cutting costs during and after construction. Low-flow plumbing fixtures and rainwater harvesting systems are on the rise as technological advancements help improve the value of construction projects.
Maintenance And Durability
Improved durability means less maintenance expenditure. So, value engineers will be tasked with finding an appropriate balance between immediate investment and long-term costs. If they can invest the right amount into high-quality materials during construction, they’re likely to save money throughout the property’s life cycle. For example, high-durability paint and finishes are often implemented towards the end of construction as they require less frequent reapplication. Additionally, self-cleaning glass and other surfaces may be deemed a worthwhile investment to reduce maintenance requirements.
Innovative Technologies
Technological advancements have transformed how quantity surveyors and value engineers do their jobs. With access to innovative software and robotics, they can establish cost-effective solutions that were previously impossible and focus their energy on the more human aspects of the role. For example, building information modelling helps detect potential issues early in a project, allowing for data-backed design optimisation and construction processes.
Site Management
Site management is a crucial element of value engineering that often gets overlooked. An efficient site layout can significantly reduce the movement of materials and equipment, reducing labour costs and improving safety. Additionally, temporary utilities like power and water connections can help reduce set-up and operational costs.
Maximise The Value Of Your Project
It’s clear that value engineering is one of the most effective ways to ensure any construction project meets its financial, quality, and sustainability targets. Whether it’s through material substitution or waste reduction, this highly collaborative approach to cost-cutting has become a must for anyone looking to maximise the value of their builds. That said, it’s important to remember value engineering isn’t just about finding the cheapest option; it’s about ensuring a development’s long-term value over its life cycle. It takes someone with plenty of experience in the construction industry to find that balance.
If you’re looking for a value engineering team you can trust with your project, look no further than Bhangals Construction Consultants. Our award-winning quantity surveying services in London have helped maximise the cost-efficiency of countless projects, and yours could be the next to benefit. Get in touch with our team today to claim your FREE site survey and start seeing huge returns on your construction investments.