General construction: budget, finance, project types
Value engineering without cutting quality
Value engineering is a structured review to find lower-cost ways of meeting the same requirements. It is different from simply cutting scope, and the difference is whether performance is still met.
Value engineering is a structured review to find lower-cost ways of meeting the same requirements. It is different from simply cutting scope, and the difference is whether performance is still met.
Function first
Start from what each element must do: carry load, keep out water, meet a fire rating, last a stated time. Any alternative must meet the same requirement. Only then compare cost.
A simple process
- List the largest budget items.
- For each, write the function and the required performance.
- Brainstorm alternatives that meet it.
- Compare the cost, program and risk of each.
- Get the designer or engineer to confirm any change.
- Record the decision and its cost effect.
Compare options in a worksheet
Use the worksheet below for each candidate change. Write the evidence for performance next to the saving. If you cannot, treat the saving as unproven.
Watch for false savings
- Lower first cost with higher maintenance or shorter life.
- A substitution that triggers redesign of neighboring parts.
- Items that look equal on price but differ in scope.
- Changes that need new approvals and add delay.
Use the substitution record guide to document any change.
Quick answers
- Is value engineering the same as cost cutting? No. It keeps the required function and performance and looks for a cheaper way to deliver it. Cutting removes function.
- When is the best time to do it? Early, while the design can still change. Late changes cost more and can force redesign.
- Who should approve a substitution? The designer or engineer of record, in writing, with the performance evidence.
This guide is general information. Confirm structural, legal, financial and permitting questions with qualified professionals and the local authority, and use written quotes for any commitment.
Questions people ask
Is value engineering the same as cost cutting?
No. It keeps the required function and performance and looks for a cheaper way to deliver it. Cutting removes function.
When is the best time to do it?
Early, while the design can still change. Late changes cost more and can force redesign.
Who should approve a substitution?
The designer or engineer of record, in writing, with the performance evidence.
Sources and further reading
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