Value Engineering - Saving money or cutting quality?
Value Engineering is term used in the Construction Industry that is over used and now has a negative connotation. A lot of contractors will mislead owners and use the term when cutting quality in effort to reduce construction costs to get the job. Value Engineering is a term meant to describe items that are equal in quality, but cheaper in price. It can be for small items like changing a brand of two products that has equal features or for a large system type change.
Recently, Adolfson & Peterson made the recommendation to an owner to change the building structure from structural steel to light gauge steel which reduced the footing size and required soil corrections work. On one item, this change saved the project over $250,000 in being able to eliminate the Geo Pier system that was required to support the large point loads from the structural steel columns. A perfect example of a system change that was equal in quality, but far less expensive.
Make sure your senior housing project team understands the difference between Value Engineering and Cost Cutting.
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