Value Engineering Saves Millions

Value engineering (VE) is a systematic method to improve the "value" of goods or products and services by using an examination of function. Construction means & methods, emerging technologies and material costs are examples of variables that directly affect our clients' cost to build.  Fluctuations in these variables can occur frequently, sometimes randomly, thus requiring our firm to stay ahead and on top of relevant industry updates.  Maintaining an edge on that information, coupled with our extensive experience in a wide variety of building systems, allows us to properly balance the effects of function and cost on overall value. These analyses are presented to our clients as cost saving options.

 

VE when applied to a complex construction project can save millions of dollars and can even improve the projects aesthetics. It is important that the (VE) does not have a negative impact on the project and (or) result in long term maintenance issues. Michael Roberts Construction, Inc.'s value engineering services consist of a systematic, top-down review of all design and construction elements with the objective of identifying cost effective product/system substitution solutions and/or streamlined sequence of construction solutions. The ultimate end is to provide our clients with innovative cost savings that need not compromise design intent, performance or long term maintenance. When implemented at the planning and design stages, these results are significantly enhanced.

MRC Case Study of (VE) at Villa Cortina, San Jose CA

On a recent 200-unit, four-story (4) apartment building the architect had designed six (6) trash enclosure areas around the project. Each trash enclosure was an approximate 15ft x 20ft concrete structure with steel doors, a wood trellis, a hose bib, a drain etc. Each one of these enclosures was estimated to cost approximately $17,000. We looked at the amount of garbage a typical 200 unit complex would produce and calculated how many dumpsters would be required and how many times per week the dumpsters would need to be serviced.  We decided that it was much more economical to build one trash room in the underground parking structure with a trash compactor and three (3) over flow dumpsters and only one (1) trash enclosure on the outside of the project on grade.  As a result of our VE, we were able to save the customer over $60,000 in construction costs by eliminating five (5) of the exterior trash enclosures. The cost of the compactor was $25,000 but resulted in a substantial savings from the garbage company because it only required a once a week pick up of three (3) dumpsters instead of a once a week pick up of twelve (12) dumpsters as originally designed. The cost reduction in garbage service will pay for the cost of the compactor in less than two (2) years.

 

Successful Value Engineering improves the value of the building by reducing the costs of construction and long term maintenance without sacrificing the original intent of the design.

1660 Dell Avenue Campbell, CA 95008 | Office: (408) 374-3662 | Fax: (408) 374-3667 | Info@michaelrobertsconstruction.com
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Photagraphy by Vilmos Palkó, Jr.

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