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What Is Value Engineering in Construction


Companies in the construction sector tend to lose a lot of time and money on expensive and unnecessary building materials or structures that are non-essential for the intended function of the building. Discover how Value Engineering can be applied to your construction projects to overcome these challenges.

VE (value engineering) evolved at the General Electric Corp. during World War II is a calculated and precise set of disciplined procedures designed to seek out the best value for both initial and long-term investment.

The Society of American Value Engineers International (SAVE International) defines Value analysis as a “structured approach to analyze and improve manufacturing products and processes, design & construction projects, and business & administrative processes.”

Although Value Engineering can be applied at any point in a project however it should be typically performed as early as possible—before engagement of funds approval of systems, services, or design to maximize return on time and money invested.

The figure below represents the study that shows the maximum benefits of Value Engineering in the initial or conceptual phase.

Value Engineering in Construction
1Latif, Sarmad Dashti & Usman, Fathoni & Pirot, Bilal. (2020). Implementation of Value Engineering in Optimizing Project Cost for Sustainable Energy Infrastructure Asset Development. International Journal of Sustainable Development and Planning. 15. 1045-

The Stages of Value Engineering

1. Planning Stage:

The planning stage is the earliest or conceptual phase of project development therefore it is utmost important to maintain clear & crisp communication for your construction projects. Begin your project with a detailed plan so that there are fewer changes and redesigns down the line that could affect the overall schedule, cost and design plans.


  • Define key goals, standards, and guidelines for your project
  • Functional analysis of the facility
  • Review of all utility and material options
  • Projecting a well-defined budget for your project
  • Explore the Concept of alternative and sustainable solutions – Often the answer lies in working with an experienced and trusted Outsourcing Partner which can provide quick TAT (Turnaround time on various conceptual designs for layout comparison. This will further expedite the process of quickly visualizing and examining alternate designs.

2. Design Stage:

This is the stage where the conceptual design has at least made it to the schematic stage. This gives the opportunity to bring the design team and client together to evaluate the proposed design solutions, the cost estimate, and proposed implementation schedule and approach, to implement the best value for the money. However, this definition of what is good value on any particular project will change from client to client and project to project. 

3. Value Engineering Process or Value Engineering Methodology:

Value Engineering Process is the last and final stage which is broken up into six important steps.

6 Stages of Value Engineering Process or Value Engineering Methodology

1. Information gathering:

The information phase is aimed at gathering all data needed to understand the full scope of the project.


  • Understand the framework and decisions that have influenced the development of the design through a formal design presentation.
  • Analyze the key functional issues governing the project. The functions of any facility or system are the controlling elements in the overall VE approach. This procedure demands the participants to think in terms of function, and the cost and impacts associated with that function.
  • Define Owner’s objectives and key criteria governing the project.
  • Determine Owner’s definition of Value.

2. Function Analysis:

The primary function is the essence of the project which requires you to determine what is required to make the project work.

3. Creative Speculation:

Generate ideas on all the possible ways to accomplish the required 


  • Define the guidelines to be used for evaluation
  • Examine and assess the plans resulting from the creative session. Ideas found to be impractical or ineffective rejected. Those designs that represent the greatest potential for cost savings and value addition are developed further. E.g. (schedule impacts, aesthetics, etc.).

5. Development:

Establish ideas into a written and verbal proposal that will be presented in the final stage of the project.


  • Description of the approved design changes.
  • A detailed evaluation of the benefits and limitations of the proposed design.
  • Value comparison and LCC (life-cycle cost) calculations.
  • Compare the original design method to the proposed change.

6. Presentation:

The purpose of this stage is to obtain approval for the project. Present your proposal to all stakeholders and decision-makers and explore any final possible alternatives before moving forward to the Construction phase.


  • Clarify project objectives.
  • Identify and prioritize Client’s value objectives.
  • Implement admitted plans into design.
  • Provide a feedback.

Read More: Value Engineering in MEP Coordination

The Value-Conscious options of Outsourced Delivery

Outsourcing engineering services contain an inherent added value over in-house design/drafting processes. Commencing from an early phase of conceptual design process to the final design delivery, multiple benefits as associated which contribute to economic planning, design, and construction phases. 

Option 1 – Multiple Engineering & Construction projects comprise of large volume of repetitive tasks particularly in Structural, Mechanical and Civil/Land Surveying projects. Outsourcing these projects not only saves you on cost but also provides a competitive edge with quicker TAT (Turnaround time). Also giving engineering firms the option to focus on their Core Competencies and Client management.

Option 2 – Then there are numerous projects which demand highly specialized skill sets. Incorporating technology changes every time incurs high investment costs in procuring the software and hiring/training in-house. Many engineering firms have resonated on the dearth of skilled resources leading to loss of projects. Outsourcing brings out the maximum value in these kind of projects at Zero setup cost. Tools like REVIT, MICROSTATION, are some of the predominantly outsourced services.

INDOVANCE Value Offering

  • Cost Benefit – Reduce O&M (Operation & Maintenance) costs up to 54%
  • ISO Certified – Process driven approach for quality management and error free delivery.
  • Transparency – Full control over dedicated resource and project deadlines.
  • Communication – Proactive approach to identify & mitigate issues and ensure smooth workflow.
  • Experience – 17+ years of Industry experience in diverse engineering & construction projects.
  • Competitive Edge – Empowering C-Level Executives to focus on Core Competencies.  

The purpose of Value engineering in construction is not just reducing the costs, increasing the design standards, making it easier to build the project and saving time and money. VE must create a balance between all the needs of the project.

So, Yea or Nay to VE (Value Engineering)?

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