What is Value Engineering
Adding Value to each Project with VE
Getting the best value engineering is not always about cost savings. Let’s look at the dictionary meaning of value;
“to consider with respect to worth, excellence, usefulness, or importance.” Source
In construction engineering there are two parts to value;Â function and costs. An engineer may suggest alternate methods to complete the task at hand that
A) Add more functionality at little to no extra cost. An example of this may apply to an owner of a building. Typically owners have to pay the cost of heating and power. An engineer can suggest ways to reduce the cost of both by using a more energy efficient design. This benefits the owner of the building and consumers (if owner rents or sells units)
B) Reduces the cost of a project without sacrificing any functions. An example of this is foundation thickness. If soil pressure testing checks out, concrete (foundation) thickness may be reduced. This can save money on the material purchased to pour the foundation.
It is a system of organized procedural decisions designed to deliver more value to the project. The beneficiaries of value engineering services are clients, contractors, owners or end consumers. It has been an accepted engineering review & analysis practice since the 1940’s. In the 40’s the original concept was developed by General Electric Company to cut back on costs in a time of war (World War 2). VE is the acronym for this procedure although VEA (value engineering analysis) is also a recognized term.