The Benefits of Value Engineering in Commercial Construction
February 22, 2022 Design Builds, General Contractor, Value Engineering, Winery ConstructionHow Value Engineering Increases Project Value and Cuts Costs
In any project, the value of the finished product is the ratio of cost to function. Value engineering is the process of looking for ways to reduce cost requirements while providing the same level of function, thus increasing the value of the finished product. The concept of value engineering has been used since the 1940s when many industries faced shortages of materials. To work around these hold-ups, engineers began successfully finding alternative supplies at lower prices that did not sacrifice the performance of their products. From there, value engineering became a standard operational process across most industries including commercial construction.
So how is it applied in construction projects? In this guide, we look at the process of value engineering and its benefits for commercial construction.
What is Value Engineering in Commercial Construction?
Value engineering can occur at any phase of a project but can be most effective when used in the early stages. Pre-construction planning is essential to efficiently integrate value engineering into a construction project. During this phase, commercial construction firms review and evaluate the scope of the project to ensure maximum efficiency of their methods, materials, construction timelines, and budgets.
Through critical analysis of the entire project, a design-build team is able to identify potential cost savings and efficiencies before a construction project has even begun. Early Value Engineering can help increase productivity, reduce the overall budget, and reduce project delays all while increasing the value of the finished product. Every project can benefit from it, but it can be especially beneficial in commercial construction when the functionality of the project takes center stage.
4 Benefits of Value Engineering in Commercial Construction
1. Cut Costs
A primary reason this process has become so beneficial to the commercial construction sector is that it cuts costs and optimizes the budget of a project. Construction professionals can cut expenses to certain aspects of a build and reallocate those funds, or put them back in your pocket, all while maintaining the design and functionality of the establishment.
Value Engineering ensures a smart budget and also adds value to the project as a whole.
2. Fewer Project Delays
Whether you’re constructing a shopping center or implementing a winery tank farm expansion, project delays impact everyone. Aside from just affecting the timeline of a project, delays are likely to interfere with project costs, labor, scheduling, and every other aspect of the build.
Unforeseen circumstances and hold-ups are sometimes unavoidable. However, integrating value engineering during the construction phase, allows construction firms to consider alternate methods or materials that can get a project back on track. Being able to find solutions that eliminate the delays not only keeps a project on schedule, but it keeps a project on budget too.
3. Improve Quality
The systematic approach allows companies to optimize every aspect of a project at the lowest cost, while also improving the overall quality. In the early planning phase of a project, design-build teams analyze every feature of a build and evaluate multiple alternatives to not only accomplish the intended design and function but to improve it as well.
This is a key element of the engineering process as it allows construction firms to provide cost comparisons of systems, methods, or materials, in order to make an informed decision for how to best maximize the budget and deliver high-value results.
4. Reduce Waste
Along with lowering costs, value engineering also reduces unnecessary waste throughout the entire construction project. With a detailed, clear, and organized overview of the project, design-build firms can cut out redundancies and have a better account for all necessary materials.
This not only includes wasted materials, but also accounts for wasted time, labor, and money.
Find Value and Quality with the FDC Commercial Construction Company
At Facility Development Company (FDC), our team of industry professionals understands the importance of value engineering. We are proud to provide tremendous attention to detail and deliver the highest degree of quality and value to every project.
Contact the team at FDC today to learn how we can bring your construction project to life.