Value engineering is part of the design process and it is intended to reduce the overall cost without affecting the quality of the design.

By collecting the design’s data, analyzing and evaluating it engineers and subs can improve the design, or switch to low-cost materials or methods that perform at the same level.

Some suggest that when performing MEP value engineering correctly, it can save 10–15% in costs and can reduce 20–25% in energy consumption.

Here are some of the key benefits of performing value engineering:

1. Value engineering = quality assurance: When evaluating design, components, systems’ selection, and installation it ensures the quality of the design, equipment, and installation methods. It creates certainty and reduces MEP-related RFIs.

2. Value engineering mitigates risks: By identifying and rectifying design errors and mistakes, value engineering can significantly reduce the likelihood of costly reworks for GCs and subcontractors. This proactive risk management approach safeguards project timelines and budgets.

3. Value engineering reduces MEP costs: By choosing better design alternatives or superior installation methods and materials value engineering allows smarter procurement decisions, and savings on parts and components. In addition, mitigating the risk of reworks and reducing RFIs, both translate to a higher bottom line and enlarged profit margins.

4. Value engineering can promote energy efficiency: Taking the time to properly evaluate energy consumption vs. price and other considerations often leads to the choice of more sustainable solutions.

Though the concept of value engineering goes back to World War II, and its advantages are clear, in the reality of labor shortage, crazy timelines, and low margins it is conducted far less than expected or needed.

How about you? Have you put time, effort, and resources into VE lately?

Originally published at https://www.linkedin.com.

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