Value Engineering (VE) can be defined as an organized approach to providing the necessary functions at the lowest cost From the beginning the concept of value engineering was seen to be cost validation exercise, which did not affect the quality of the product. The straight omission of an enhancement or finish would not be considered as value engineering.
Value Engineering is not a design/peer review or a cost-cutting exercise. VE is a creative, organized effort, which analyzes the requirements of a project for the purpose of achieving the essential functions at the lowest total costs (capital, staffing, energy, maintenance) over the life of the project. Through a group investigation, using experienced, multi-disciplinary teams, value and economy are improved through the study of alternate design concepts, materials, and methods without compromising the functional and value objectives of the client.
VE can be applied at any point in a project, even in construction. However, typically the earlier it is applied the higher the return on the time and effort invested.
Value Engineering is not only beneficial, but essential because:
• The functionality of the project is often improved as well as producing tremendous savings, both initial and Life-Cycle Cost.
• A “second look” at the design produced by the architect and engineers gives the assurance that all reasonable alternatives have been explored.
• Cost estimates and scope statements are checked thoroughly assuring that nothing has been omitted or underestimated.
• Assures that the best value will be obtained over the life of the building.