The estimating process for any construction project can be full of surprises. If a project is running over budget an owner may start looking for ways to save money. To do so the owner typically asks the contractor to undertake a value engineering exercise. But what is construction value engineering and how is it used?
Construction value engineering is an exercise typically undertaken by the contractor and designers to remove, alter or defer scope of work on a project in order to save money. Ideas are brainstormed by the project team, put into a log and the corresponding savings is determined. The owner then reviews the list alongside the project team and determines which items to accept or decline.
Construction value engineering can be a powerful tool in the estimators arsenal. It gives the contractor or construction manager an opportunity to create value for their client. By offering innovative solutions that save money while still providing the design intent a contractor can differentiate themselves from their competition.
This value engineering template will help you to track the following:
- Value Engineering Item
- Date Identified
- Savings or Value
- Accepted or Declined
- Action Required
- Action Required By
Streamline your value engineering process by utilizing this spreadsheet template today!