Value Engineering in Construction

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What is value engineering in construction?

Construction value engineering (also known as VE or value analysis) plans for cost-efficient and time-efficient methods, which won’t compromise on quality or results, but keeps projects on time and within budget. Value engineering in construction examines every aspect of the function-to-cost ratio, creating solutions for alternative construction methods, designs, new technology (including modern construction methods) or the use of different materials to improve value.

Originally developed by Lawrence Miles after World War Two, the concept of value engineering involves a team of designers and engineers, working together to make sure maximum value is delivered at every stage of the project. It is most efficient when used in the early stages of construction planning, but it can also be used during the design phase, or even after building work has started if quotes for building materials are too high or availability is scarce. Note that value engineering doesn’t always mean cost saving; it can simply aim to improve functionality.

Who is responsible for value engineering in construction?

Value engineering involves a team of specialists, including designers, architects, quantity surveyors, engineers, estimators, construction contractors and project managers. Each specialty works collaboratively to come up with a systematic approach to analyse and improve value. 

Examples of value engineering in construction might be to swap an original material type for an alternative, using a different building method or choosing a more sustainable way of working to reduce the impact upon the environment. Sometimes contractor availability, material prices or even planning permission restrictions might call for value engineering solutions.

It is recommended to have a clear construction contract in place for each specialty. 
 

What are the five key principles of value engineering?

Value engineering in construction is a multi-skilled approach to coming up with alternative ideas to improve efficiency or reduce costs. The five key principles of value engineering construction are:

• Maximising value: a systematic use of skilled techniques by a multidisciplinary team

• Minimising costs: identification of the cost, function and overall worth of a service or product

• Improving efficiency: using creative ideas, modern construction methods and technology to find alternative solutions

• Keeping quality high: the evaluation of cost, efficiency and availability to enhance value at every stage, whilst maintaining quality

• Developing alternative ideas and putting them into practice: the means of executing plans to achieve reduced costs, faster timescales or improved performance to make the most of resources

What are the benefits of value engineering in construction?

As well as aiming to save money and/or the ratio of function to cost, value engineering in construction can help reduce unnecessary expense, product wastage, save time and enhance performance. It can contribute towards a more sustainable way of building as well as reduce risk and avoid additional delays. Technology and collaboration can be used to improve the overall efficiency of a project.

Examples of value engineering in construction

Examples of value engineering in construction may include any aspect designed to improve efficiency and maximise value, from the design phase through to during construction. This might include:

• The use of software to improve efficiency - such as framing estimating software or concrete estimating software, which calculates the materials needed to generate estimates. A product specialist may then source alternative options for materials, or produce ready-made cost templates to build bespoke quotes

• Re-design to maximise space - architects may be able to offer alternative designs to save space or increase the size of living areas, such as in multiple occupancy housing

• Multi sector teamwork to improve efficiency - value engineering and thorough pre-planning can be used to maintain efficiency whilst improvement works are being carried out, such as rerouting traffic with minimal disruption to upgrade road tunnels one section at a time

• The use of modern construction methods - these offer modular solutions built off-site to help reduce costs, speed up construction and maintain high quality, such as pre-cast panels delivered and fitted in a new extension

Value Engineering Process

Construction value engineering has five key stages of planning:

• Information phase - identifying project objectives 

• Speculation phase - also known as the creative phase, where teams brainstorm ways to increase value

• Evaluation phase - also known as function analysis, where each alternative is fully evaluated

• Development phase - value management proposals are put into realistic solutions, with new designs and costs submitted

• Presentation phase - also known as cost analysis, where a full report and/or presentation showcases the changes ready to put into action

The final stage (stage six) is the development phase.
 

What are the challenges of value engineering in construction?

The known challenges within value engineering include being able to coordinate multi-disciplinary teams in an efficient way, finding the correct balance between cost saving and functionality, ensuring high quality and not compromising the original project aims and objectives. However, the use of technology and new materials can help to improve efficiency during the process.

For more information, inspiration and handy construction tips, visit the dedicated Travis Perkins Trade News and Advice hub. 

Value Engineering Construction: FAQs

What are the 6 stages of value engineering?

The six stages of construction value engineering are:

1. Information phase - identifying project objectives 

2. Speculation phase - also known as the creative phase, where teams brainstorm ways to increase value

3. Evaluation phase - also known as function analysis, where each alternative is fully evaluated

4. Development phase - value management proposals are put into realistic solutions, with new designs and costs submitted

5. Presentation phase - also known as cost analysis, where a full report and/or presentation showcases the changes

6. Development phase - plans are put into action

What is an example of value engineering in construction?

Examples of value engineering in construction might be to swap an original material type for an alternative, using a different building method or choosing a more sustainable way of working to reduce the impact upon the environment. Sometimes contractor availability, material prices or even planning permission restrictions might call for value engineering solutions.

What is the main function of value engineering?

As well as aiming to save money and/or the ratio of function to cost, value engineering in construction can help reduce unnecessary expense, product wastage, save time and enhance performance. It can contribute towards a more sustainable way of building as well as reduce risk and avoid additional delays. Technology and collaboration can be used to improve the overall efficiency.
 

Disclaimer: The information contained on this page is intended as an overall introduction and is not intended as specific advice from a qualified professional.