REAL VALUE ENGINEERING
The term Value Engineering has been misused in the industry for over 30 years. A group does a “Value Engineering” session which concentrates on cutting costs and many times reducing the value of a project. The assumption is the less a project cost, the better the value. This usually means the word “value” is not really understood by the group.
COST CONTROLS DURING the DESIGN PHASE OF PROJECT
The success of a project depends on a design that maintains the owner’s budget as well as the function the owner requires for the project. When the lead designer has a detailed schematic design estimate to confirm his design, the team can meet the budgets in the estimate and this will prevent design creep. This ties the designers to the budget at a schematic phase. This requires the lead designer and the other designers to confirm their commitment to the budget.
Parametric Estimating
An integral element for a successful construction project is a parametric, or as often referred to, a schematic estimate. The function of a parametric/schematic estimate is to transfer the information provided by the designers, architects and owners, prior to starting the design, into a detailed estimate. This allows the entire team to review cost versus the budget without the expenditure of valuable time. Major changes can be made at this stage.