Construction Value Engineering and Cost Estimating go hand in hand.
Simply put, value engineering is a process intended to balance between function, performance, quality, safety and cost. The appropriate balance in alignment with organizational requirements results in the maximum value for the project.
Arguably Integrated Project Delivery, Collaborative Job Order Contracting, Alliance Partnering, and similar project delivery methods represent value engineering applied to built environment repair, renovation, maintenance, or new construction projects. All represent frameworks to enable the systematic application of function-oriented techniques by multi-disciplined teams to analyze and improve the value of the associated planning, procurement, and project delivery teams and phases. All are structured to mitigate unnecessary cost and associated quality issues or time delays.
While traditional value engineering applied to construction projects have been shown to provide cost savings in the range of %5-20%, construction-specific implementation can enhance cost visibility and cost management by 30%-40%+, especially when integrated with objective, current, and granular local market line-item construction task data complete with labor, material, equipment and productivity details.
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