Value engineering analysis focuses on meeting the functional requirements of the building at an acceptable cost while maintaining the highest quality possible. Each building system and its components are analyzed for adequacy, efficiency, and length of useful life and cost. Life cycle costs are established for alternative systems and components. Our strengths in securing various engineering disciplines for this review, combined with daily hands on experience, can be a significant benefit to the owner.
Value engineering analysis is divided into four phases: information exploration, analysis, planning and implementation. The information phases define who the owner/users are and their needs and wants. The exploration phase is pursued to generate as many ideas as possible utilizing a brainstorming approach. These ideas are then evaluated and ranked for feasibility based upon critical criteria. The last phase, planning and implementation takes the best ideas and provides an in-depth review for evaluation by the decision-makers for final selection.
Typical value engineering sessions would include:
- Identification of needs and definition of function
- Creative solutions to meeting the basic needs or function
- Developing the costs for the various alternative solutions
- Evaluation and ranking of the various solutions based on project criteria, feasibility of implementation and cost
- Selection of the optimum solution and implementation
- Analysis of cost is not limited to the first costs, such as basic construction costs but should include all costs, such as operation cost, maintenance cost, life expectancy, and all other aspects of life cycle cost. For example, using a material or system that is 80% of the cost of an alternate but will last just five years, rather than twenty years, may not be a prudent decision. Consideration of life cycle costs can actually result in project solutions that increase the first cost of the projects but are in the owner's best long-term interest.