Value Engineering Will Reduce Your Construction Expenditure


ARCOR-Inc, makes use of Value Engineering in the practice of Construction Risk Profiling™, ADA Compliance and Construction Defect issues.

Value engineering allows the substitution of alternative methods and means of production without sacrificing function and is usually achieved at a cost and or time savings. In construction, value engineering usually requires a collaborative approach amongst the parties to a project, i.e. the owner, design professionals and contractors where they all get together and identify areas where there is opportunity for savings. Developed during WW II at General Electric, value engineering increasingly plays a fundamental role in the construction process.

With the advent of the Internet Value Engineering has become even more central to the construction process. Countless opportunities to substitute products, methods and components in construction are now readily available, which often result in significant cost benefits.


 Engineering Will Help You Ensure That Your Project is On Time and On Budget

At ARCOR, we can help you get the most out of your project with creative solutions, which we can evaluate from a constructability, design and cost perspective. In essence we give you a three-in-one,  i.e. Architect, Contractor and Cost Estimator, which already reduces your expenditure right from the begining.

You Need Value Engineering If…

  • Your project is over budget and and or time
  • The lead time on materials or building components forces you to seek alternatives
  • The alternatives you find are at a higher cost than the ones they replace

We’ve done it for others, let us do it for you. Let us help you realize savings on your construction project, without sacrificing quality and serviceability.


Value Engineering’s History in Construction

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Source: The American Institute of Architects, Using Active Value Engineering for Quality Management

Value Engineering within construction was pioneered by Mr. Alphonse Dell’Isola in the 1960s. He focused on the same goals as Miles and Erlicher in developing a value analysis process for construction. The Federal Government Construction Value Engineering Law (Public Law 104-106) can be credited to Mr. Dell’Isola. During his career, he conducted more than 1,000 VE workshops for various organizations that resulted in savings of $2.5 billion.

Dell’Isola identifies “improving project value” as the main objective of VE. In addition to improving project value, he states that the project team should utilize VE to overcome poor project value and quality, including,

1) Lack of shared project information—insufficient data on the function of stakeholder requirements. This includes building materials and processes.
2) Lack of ideas, or failure to develop alternate solutions and then making choices based on economics and performance.
3) Temporary circumstances—urgent delivery, design, or schedule circumstances can force decisions that, while quick, are often incomplete without regard to value.
4) Honest but wrong beliefs—decisions based on what is believed to be correct rather than on facts.
5) Habits and attitudes –response to doing the same thing, the same way, under the same circumstances.
6) Changes in stakeholder requirements—new requirements may cause costs to increase without awareness.
7) Lack of communication and coordination—issues of communication and coordination have been determined to be reasons for unnecessary costs.
8) Outdated standards and specifications—VE helps isolate and focus new technologies and standards in areas where high costs with poor value may incur based on wrong or legacy information. Active VE can provide a framework for a rigorous review of project specifications (Dell’Isola, 1997).