Perhaps the most overused words in the field of construction are time, quality and cost. A further analysis will reveal why this is so; every client wants a quality construction project, delivered on schedule and within budget.
In other words, the top concern of construction clients revolves around these three metrics; time, costs and quality. If these are the major concerns of construction clients, we had to find a way to also make this our top priority in Sapient Vendors.
That’s why value engineering is an integral part of our core 7 value propositions to our clients, and over time, it’s been one of our competitive advantages in the Nigerian construction space.
This article is the first post of a series we will be writing on value engineering. Having developed an in-depth knowledge of this process over our 10 years industry experience, we want to educate our prospective clients on the immense benefits of integrating value engineering into their construction projects.
Let’s get into it!
What is Value Engineering in Construction Projects?
According to Wikipedia, Value Engineering (VE) is a systematic method to improve the “value” of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost.
In construction, value engineering involves considering the availability of materials, construction methods, transportation issues, site limitations or restrictions, planning and organization, costs, profits and so on. Benefits that can be delivered include a reduction in life cycle costs, improvement in quality, reduction of environmental impacts, and so on.
Value engineering must start at the inception of the project where the benefits can be greatest. This allows the contractor to make a significant contribution as long as the changes required to the contract doesn’t affect the timescales, completion dates or incur additional costs.
Value engineering involves:
- Identifying the main elements of a product, service or project.
- Analyzing the functions of those elements.
- Developing alternative solutions for delivering those functions.
- Assessing the alternative solutions.
- Allocating costs to the alternative solutions.
- Developing in more detail the alternatives with the highest likelihood of success.
Why Value Engineering is Vital to Construction Projects in Nigeria
Below are reasons why value engineering is vital to construction projects in Nigeria.
It helps in lowering operating and maintenance costs
One thing is to have a successful construction project and another is to have a budget in operating and maintaining the completed construction. Value engineering doesn’t just lower your costs of construction; it also considers the functionality of the project taking into account the cost of operations and maintenance after project completion. So with value engineering time, cost, quality and functionality is accounted for throughout the project life-cycle.
It helps in improving quality management
Any project with inadequate attention to construction quality control can negatively impact the project. This creates a great potential for quality improvements in construction projects in Nigeria. Through value engineering, quality is improved through the assessment of alternative solutions for each critical function and feature of the construction project. When the best solution at the best cost is selected, overall quality improves.
It helps in improving resource efficiency
Another importance of value engineering is that it helps in improving resource efficiency that allows the construction to achieve more with less, delivering greater value to the client. Resource efficiency is about getting the most from every resource available for the construction project. This is achieved by seeking out other alternative functions derivable from available resources.
It helps to derive value from capital expenditure
Companies tend to demand value from their capital expenditures even though large capital projects are often not delivered at the lowest possible cost. But with the application of value engineering, it helps companies to derive value from their capital project by not compromising the quality while delivering life time cost savings for the capital project.
The purpose of value engineering is not just about reducing the costs or increasing the design standards or making it easier to build the project while saving time and money. Value Engineering aims at striking a balance between all the key metrics of time, quality, and cost needed for a successful construction project.
When you absolutely need to ensure your construction projects are accomplished on schedule, without compromising quality and within specified budget, contact us now!