Value Engineering by The Haskell Company
Value engineering (VE) is a standardized process of analyzing a project’s essential functions and identifying areas where costs can be reduced. The main objective of value engineering is optimizing the project owner’s return on investment. It involves identifying the main requirements of a project, generating alternative solutions when needed, evaluating them, and selecting the best option.
The Value Engineering process typically involves a team of subject matter experts (SMEs) in various areas, such as design, engineering, project management and finance, working together to identify areas where capital expenditure can be applied more effectively and efficiently.
Clients usually have detailed requirements for their projects when it comes to design and construction. For instance, if a client wants to build a bottling production facility with a budget of $100 million but the equipment needed for the project exceeds the proposed budget, a design-builder such as Haskell provides alternative solutions with cost-effective local suppliers without compromising quality. It is important for design-builders to understand the client’s expectations for their facility and to have alternative solutions to be more efficient and deliver a successful project.
Value Engineering is a valuable process for every project stakeholder that can be applied at any stage. For example:
- Planning: While planning the project, understanding the client’s expectations is crucial. This is the stage where the client must define their objective and criteria for their project, such as site layout, budget expectations, production process and risks involved.
- Design: The design stage involves the development of the design based on the client’s requirements, focusing on site development, and key components of the facility.
- Methodology: This stage involves the analysis of the design, evaluation of the safety of the project, environmental factors and materials required for the project. Alternative solutions for the design are developed as needed.
Incorporating value engineering provides significant benefits to a project. It is cost-effective, improves performance, increases the efficiency of the project, and mitigates risk.
- Cost Savings: Value engineering helps to reduce costs by identifying unnecessary expenses and finding more cost-effective solutions. This can result in significant cost savings for a project.
- Improved Project Performance: Value engineering can improve the performance of a project by identifying opportunities to optimize its design and functionality. This can result in a better-quality result that meets or exceeds project requirements.
- Increased Efficiency: Value engineering can help to streamline project workflows by identifying more efficient methods and processes while reducing the time and effort required to complete a project.
- Risk Mitigation: Value engineering can help identify and reduce risks associated with a project, such as reducing the likelihood of delays, errors, or other issues.
Haskell provides Engineer, Procure, Construct (EPC) and Design-Build services for a range of industries, such as Food & Beverage Manufacturing and Aerospace & Aviation, and Value Engineering plays a critical role at every stage. The goal of Value Engineering at Haskell is not only to reduce cost, but to create value.
For example, Haskell suggests substitution as a method of optimization in its projects when required. Examples include:
- Earthworks with the reuse of existing materials or an innovative design or platform
- Foundations with soil stabilization or the use of underpinning
- Structure with a Site Seismic Study, a more efficient design, changing reinforced concrete for steel or vice-versa
- Roofing using different and/or local materials
- Mechanical and electrical using local brands and materials
- HVAC using a more efficient system and local brands
- Piping that simplifies processes and uses local brands
CTA: Contact our architectural, engineering and construction teams to discuss how to maximize the value of your organization’s next capex project.
