what’s that mean?
Value can be defined as the regard that something is held to deserve; the importance, worth, or usefulness of something. It can also mean one’s judgment of what is important in an application.
Engineering is the branch of science and technology concerned with the design, building, and use of engines, machines, and structures.
Value Engineering in the construction industry is most commonly associated with reducing the cost of a specific scope of work by offering an alternative means without great compromise to the end product. An example – You have a high profile 30,000 sq. ft. manufacturing area and you believe a high end epoxy floor coating would make a good presentation. The project is bid and it comes in over budget. You offer (2) coats of a sealer that will be clear but offers a glossy appearance it cost .35 per sq. ft. compared to the $3.65 per sq. ft. epoxy. If acceptable you saved $100K and still have a good looking floor.
Value Engineering can also mean looking at life cycle costing to create savings over a long period of time. An example might be asphalt v. concrete. For the same rating concrete may be 1.5 X the cost but may last 3X as long without much maintenance.
Nearly everyone needs the max project for the least dollars. The value engineering process is on going at Ferguson. If it is a design build project, it starts with initial information gathering meeting, then in design and then through estimating. Internally, along with our subcontractors and suppliers, it’s a competition between disciplines to come up with the best ideas to deliver the most project value.
The tough part of the value engineering process is communication and primarily on the owners behalf. Straight forward conversation about what’s important to make the project successful, what are the “sacred cows” and what can be altered.
In conclusion, value engineering can be view as a structured, creative process that assists with reducing the cost of a specific scope. It can also be used to look at the life cycle cost to create savings over a period of time. Value engineering can be on going process. This process requires a great deal of straight forward communication from both the project team and the owner to achieve the end result.
Contact us today to work with our experienced value engineering process.