How General Contractors Can Maximize Value Engineering with the Right Construction Management Software
With construction costs climbing, many view value engineering as a key strategy for reducing expenditures. However, value engineering is not equivalent to cutting costs. Value engineering techniques, “… optimize project costs to achieve maximum quality and functionality within budget.” By applying value engineering techniques, general contractors can help owners save money and time, improve build quality, and maximize function.
How can general contractors do this? By following these steps, preconstruction and project managers can enhance collaboration with clients and designers to reduce project costs via value engineering smartly.
Why Focus on Value Engineering During Preconstruction?
Benefits can be realized from value engineering throughout the construction process. However, when done during preconstruction, it tends to add greater value (compared to if it occurs during construction).
As the project advances into the construction phase, making changes to the plan – even smart ones – often slows construction and drives up the budget. So, the benefits gained from value engineering are minimized. Typically, when value engineering takes place during construction, it acts as a corrective measure.
And what about during preconstruction? During this phase, the team can implement changes based on value engineering more easily without impeding the project schedule.
“Value engineering efforts in the early stages of project design afford greater savings and allow a change of direction, if appropriate, without affecting deadlines,” according to the U.S. General Services Administration.
Keys to Implementing Value Engineering During Construction
Establish a Relationship
Is the project owner looking for a general contractor to serve as a partner or order taker? Not all owners, projects, and contract types are the same. Some owners (ownership teams) are more open to feedback and ideas from a GC. They encourage the GC to apply value engineering to save money, time, etc.
Owners are more likely to seek the GC’s input when they trust their work and feel at ease with them. If the two haven’t worked together previously, the GC should strive to develop a relationship with the ownership team (and the design team).
There are multiple ways to develop a relationship with the ownership team and design team. It starts with communication. Attend meetings, even optional ones. Be on time, engage in small talk, be prepared, and contribute appropriately. Communication shouldn’t stop when the host ends the meeting. GC should keep ownership teams in the loop to demonstrate that they (GC) are managing responsibilities effectively and staying proactive.
How RedTeam Helps: The software helps GCs manage relationships with clients. RedTeam’s solutions store the history of communications and work completed from preconstruction through closeout. What worked in the past with the owner? What did similar owners respond to?
With this information at a GC’s fingertips, they can more easily develop relationships with owners.
Demonstrate Interest
The decision to apply value engineering techniques often comes from the top down. However, it doesn’t have to be that way. General contractors should come up with ideas for value engineering. When GCs identify opportunities for value engineering, they show owners they have a genuine commitment to improving the project.
The initial plan may identify a vendor that is less than ideal for the materials. Perhaps, the team can purchase materials at a lower cost or shorten the lead time for procurement. To do this, someone needs to reach out to vendors, compare offers, and determine which is ideal for the project.
The time it takes to make this happen may make the effort pointless. Either way, it will pull staff away from other valuable tasks.
How RedTeam Helps: RedTeam software makes this step simple. With the software, estimators can easily search and identify the most suitable vendors for the project based on their vendor history.
By having this information easily accessible and finding the ideal vendor, RedTeam helps preconstruction managers apply value engineering and improve their clients’ projects.
Interact With the Greater Team
A significant construction project brings together a diverse team of professionals, each responsible for fulfilling their role effectively. Even when everyone contributes as expected, a common risk remains: the tendency to work in silos.
Each group in the team is so focused on its contribution to the project that it loses track of the bigger picture.
To apply value engineering to a project, teams need to be collaborative with those beyond their immediate coworkers and others on the same task. General contractors need to be in contact with design team members during preconstruction to apply value engineering.
A common impediment that minimizes partnering and keeps teams in silos is the inability to share documents and see what other team members are working on. How can one expect teams to work together when sharing is a time-consuming challenge? Who has time for that?
How RedTeam Helps: With the software, internal stakeholders have instant access to the latest updates and information they need to complete tasks efficiently. Documents are easily shared, progress tracked, and changes communicated instantly.
Those on an outside design team can share documents with one team member from the GC side. The internal connection can then share the documents with the team, so everyone is on the same page. The hive mind can apply its individual talents to try to find opportunities to use value engineering.
General Contractors can increase their value and save their clients time and money with value engineering. The ideal time to apply this technique is during preconstruction. Engaging in the process isn’t simple. RedTeam can help. Reach out to learn how.
