Value Engineering: Why It Matters for Business Owners and General Contractors
You may not have heard the term “value engineering”, but it is a term that frequently comes up when contractors and/or their clients want to minimize project costs. It is likely that the best contractors that you encounter will use the term value engineering, so this article has been written to give you a broad overview of its concepts so that you can feel confident and well-informed when discussing this topic with contractors.
What Is Value Engineering?
Simply put, the goal of value engineering is high value at the lowest cost possible.
Sometimes, a visual is easier to understand– this graph shows that the target is on the far right, where only value is at a high number and cost has stayed at a low one.
But, value engineering is different from simple cost-cutting because it doesn’t sacrifice the utility of the final product. Value engineering involves selecting the most cost effective options for materials and methods that will meet the functional requirements of the project. So, the goal of value engineering is to design a solution that is cheaper, but still high-quality and just as effective. In other words, value engineering optimizes the mix of performance and cost.
So, how is it possible to maximize value? It’s important to analyze all costs related to production, design, maintenance, and replacement. In other words, a key part of value analysis is to consider product life cycles and alternative materials and components that will get the job done properly.
Benefits of Value Engineering
- More bang for your buck
- Construction may be simplified for a nearly identical look, saving time and money
- Same or better performance
- Less long-term costs when it comes to maintenance and/or replacement
- Business owners can use cost savings towards other business investments
At Emerald Inc., it is common for our clients to be on a very tight budget. We understand that maximizing the value of investment in a project is a top priority when companies are remodeling or expanding. So, we strive to find the perfect ratio of function to cost so that the business can avoid unnecessary expenses. Reach out to us today at 480-832-9808 or firstname.lastname@example.org so that we can work together to value engineer the best solution for your project.