Understanding the Concept of Value Engineering
Value engineering is a systematic approach to providing the functions needed for a project at a lower cost. The goal of value engineering is to arrive at a project’s desired result without spending the originally projected amount. This concept evolved from General Electric policies implemented during World War II when saving money was paramount.
Product value comes down to two elements — function and cost. When function and cost are a ratio that represents the value of the product, you can increase value by either improving function or decreasing costs. Ultimately, value engineering increases the value of your project.
Value engineering services are valuable in construction projects because staying within budget is usually a top priority in these scenarios. In fact, projects may not even be approved until they are within budget. While cost is always a factor, construction projects often represent critical infrastructure, and quality cannot be sacrificed for the sake of saving money.
Value engineering finds ways to reduce costs without disrupting function. Project outcomes can fulfill their role as expected and operations can meet budgetary restraints.