Want to get the most from value engineering? When considering a new development in today’s construction climate, value analysis is useful to maximize quality with the lowest cost. There’s no wrong phase to begin value engineering, however it’s most beneficial during the planning and design phases. Here are a few things to think about early on:
Examine Your End-User(s)
Examine your end-users prior to completing your design. This will help your team choose the most effective layouts, materials, finishes, equipment/appliances, amenities, etc., during the initial drawings. By implementing this strategy while still ironing out the details, you help yourself save time with changes later in the process. It will not only allow for a deeper understanding of what people want; it’ll also assist you in providing additional value.
Determine your required options
Look at your options and determine the “must have’s”, the “would like to have’s”, and the discretionary wants. Analyze the functions, complete a cost analysis, and consider the expected ROIs. If your initial investment is more but your ROI is higher, does it add value to your project? Remember, the word value means something different to each person, communicate what you see as value with your team.
Know the supply chain availability
Know the current construction material cost and availability when incorporating value engineering into your planning and/or design. Many materials have experienced a long lead time due to supply chain problems, have your team investigate this beforehand. If you plan certain amenities to raise ROI (this sounds good right) but the materials are unavailable for six months to a year, is the value worth the wait?
Ensure skilled labor availability
Along the same lines, know the availability of specialized labor. With the current skilled labor shortage, will you be able to add the pool or the splash pad without delaying construction? If you are unable to get the correct skilled labor, ask your team to investigate acceptable available alternatives. You can still add what you deem to be value and change your original concept.
Consider lifecycle cost
Consider the lifecycle cost. Does spending more now to save more later, make sense for your project? Or would you rather lower the investment cost and absorb the replacement/repairs down the road? This applies to not only your finishes and appliance/fixture choices but also to the amenities you choose to include. If you’re making it a point to have space for a home office, does this trend appear to be needed for the foreseeable future?
These days we all want to please as many of our end-users as possible by providing the highest quality amenities and readily accessible features that attract our target demographic. Keeping this mind, take the time to talk to your team about value engineering so you can have as many added value segments as possible within your budget. The earlier in the process that you start value analysis, the more results you will see.
