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Most of us understand very well, the value created by Value Engineering. Why then is it utilized so ineffectively by so many?
benefits of value engineering, Construction, cost reduction with value engineering, value engineering
Continuing the discussion regarding #000000;">value engineering from Part 1, we now look at a few more aspects about Value Engineering. This includes a roadmap to foster innovation, internally encourage the practice and possible reasons why project proponents sometimes miss the bus in implementing this on their projects.
Q1: Do we really innovate in Construction?
Ans:The answer is a definite yes! The number of innovation or the pace with which these hit the industry may be slower than what we observe in some other industries. However, innovation does take place in construction. Concrete, RCC and PSC are all innovations and within RCC and PSC, there have been a series of smaller innovations. One can easily list more than a few hundreds of innovative products and solutions that have been adapted by the construction industry.
Q2: How can one go about quantifying Value Engineering – what should be the baseline?
Ans:Quantification of Value Engineering requires a baseline of functionality and cost to be in place at the time of starting Value Engineering. The baseline functionality is usually documented in the project brief or design basis reports. The cost baseline is documented in the last approved budget. It is essential that the budget contains sufficient details to pin point the cost of existing solution.
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