Is value engineering a concept?
Prior to deciding whether or not to apply the concept of value engineering to a project, it might be beneficial to learn more about what it means. Based on the U.S. General Services Administration, “Value engineering can be described as an approach to analyzing structures, features equipment, as well as material choices with the aim of performing essential tasks with the smallest lifecycle cost that is compatible with the needed quality, performance, reliability, and safety…Properly valued engineering is a process that considers different design strategies to improve the expected value/cost ratio of projects upon completion…and offers suggestions on ways to improve or maintain performance while reducing lifecycle expenses.”
Value engineering is about generating value by striking a balance with the goal of improving the functionality and increasing costs to meet customers’ wants. Customers don’t purchase things and services; they are buying what the solution will do for them.
Why should you choose value engineering as a contractor?
There are many benefits of incorporating value engineering into your business as a contractor. By combining value engineering into your process, you are able to show your expertise and get more contracts as you distinguish your business from others by saving your clients money and delivering greater capabilities.
It is also possible to protect yourself from risks from typical industry problems like shortages of labor and materials. Planning for and incorporating labor-efficient materials/labor-saving techniques or using alternative materials can help keep projects on track when headwinds arise. The ability to meet deadlines not only shields your business from loss of profit but improves your image on the market, which can lead to more prospects in the near future.
Where do you begin with value engineering
There are numerous opportunities to implement value engineering principles throughout a construction venture. However, the most significant advantages will be realized by beginning from the beginning of the process.
- Make sure to go through your plan and search for areas where you could add value, like the potential for costly area overhaul.
- Do more than review the design and analyze the facility in order to find design weaknesses like code violations and outdated standards. Utilize technology and your knowledge to identify areas for improvement.
- Learn the client’s concept of value in order to ensure the design is able to meet the requirements of the client. The more you are able to understand the client, the less likely you’ll face problems later, like hearing that the modifications you made were “not the way I wanted to go. Knowing is the best way to save money!
- Set the main requirements and goals for the project so that excessive costs and features don’t cause scope creep.
- Find alternative solutions by comparing the materials used, changing the time of labor, and not altering the function.
Technology can enable value engineering.
Implementing value engineering requires the use of creativity, a clear and objective viewpoint, and clear communication. As a contractor, your experience and knowledge will allow you to recognize issues and suggest possibilities to change things, which will provide the customer with greater value.
Effective communication is crucial in implementing your plans successfully. Simply giving the client a dollar amount is not enough. It is essential to be clear and give specifics to show how the changes will bring more value to the customer.
Technology is your partner and can help you communicate your ideas and suggestions. Utilizing an estimation software such as Trimble WinEst provides you with the capability to analyze options and then document the options and provide the transparency that the client requires to be able to comprehend the changes proposed.
For instance, In WinEst, you can quickly make alternative solutions – take the base estimate, work out the alternative solution, subtract costs or add on costs, employ various materials, and alter labor costs – without having to re-do takeoff. With a minimum of energy and time, you are able to examine a range of options and choose the most efficient solution that the user will be happy with. “Mini estimates “mini estimates” can be used to communicate clearly the proposed solution and assist you in gaining acceptance from your client.
Learn more about value engineering.
Value engineering has become more vital than ever, so making it a fundamental part of your strategy can bring massive advantages. Accurate cost projections are a constant demand in the market, as is value engineering an essential ability. There are also certificates and licenses to be obtained for those who wish to demonstrate that you are proficient in the field and with SAVE International’s highest level of certification for Value Methodology as one of the most sought-after.