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Value Engineering

reduce cost without eroding what the project is for

Value engineering is often used as a polite name for cutting the specification until the number fits. Done properly it is a structured examination of how a project delivers its function, aimed at removing cost that buys nothing. We run value engineering exercises on projects in Cyprus at design stage, after tender returns, and during construction, always starting from what the building has to achieve rather than from a list of things to delete.

understanding function and cost drivers

We begin with elemental cost analysis to find where the money actually is. It is rarely spread evenly: on most projects a handful of elements — structure, envelope, services, external works, and often abortive complexity in the design — account for the majority of the cost and almost all of the opportunity. For each of those elements we articulate the function it performs and its cost per unit of that function, which turns the discussion from opinion into comparison and stops the exercise fixating on visible finishes that carry little of the total.

generating and testing alternatives

Working with the design team we develop alternatives: a different structural grid or slab type, a rationalised envelope build-up, a simplified services strategy, standardised components, a change in sequencing or a specification substitution with the same performance. Each option is priced and tested not only on capital cost but on programme, buildability, maintenance and lifecycle cost, statutory compliance and design intent. Options that damage the project's purpose are rejected explicitly, so the client can see that the decision was made rather than overlooked.

decisions, implementation and verification

The exercise ends with a written report: each proposal, its saving, its consequences, its risks and a recommendation. The client and design team accept, reject or park each one, and accepted items are tracked into the drawings and specification — because a saving that is agreed in a meeting and never drawn is not a saving. We then verify the revised cost plan against the target and report the outcome, including any items where the saving proved smaller in detail than in principle.

what you receive

  • elemental cost analysis and cost driver review
  • structured value engineering workshops
  • priced alternative options with lifecycle comparison
  • buildability and programme impact assessment
  • value engineering report with recommendations
  • implementation tracking and revised cost plan

The best time for value engineering is before the design is fixed, when alternatives are still cheap to adopt. Engage us at concept or detailed design stage and the savings tend to be structural rather than cosmetic.

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