Do you Value-Engineer or Engineer Value?
Consider this question, and you soon realize that Value-Engineering is usually used as a 'reactive tool' to correct a proposed solution for a given problem. Stated differently: VE is used to re-design a set of plans and specs to realign "the design" to fit "inside" the owner's budget.
Conversely, the idea of Engineer-Value (EV) is an 'active tool' used to "guide" the solution to a given problem while concurrently maintaining alignment with (fitting in) the ownr's budget. In defense of true Value Engineers, I recognize that VE is a process (in its purist form) that begins at the inception of a project. But in our industry, today, VE is more commonly used to "hack" the design apart to save money.
The real offensive part of this mis-application of Value Engineering is that 'limited' resources have been consumed (fees paid, efforts of design, documentation, bidding the design documents, etc), and the time lost can never be recouped by the Project Owner. This waste of resources and time does not, of course, need to be repeated on project after project; if only Project Owners would demand accountability...better yet, assure accountability by applying project delivery methods that demand Engineering Value (EV).
Of the 3 primary delivery models available in most markets to most owners (design-bid-build, construction management @ risk, and design-build), design-build, particularly 'performance-based' design-build (as endorsed by the Design-Build Institute of America-DBIA) applies EV as a matter of practice. Why? Because the design-builder manages price, design, and construction under a 'single source of responsibility' contract. Price targets are in place, and since the DB manages design (i.e. the influence of all costs) they have the power to influence/manipulate price on an iterative basis from the beginning of design (particularly performance-based).
In addition, EV is a natural fit with performance-based design-build because it leverages the owner's 'performance criteria'. As taught by DBIA in their 'Owner Series' training classes; performance-based specifications is the instrument that allows the design-builder to 'auto-correct' and fulfill the owner's expectations. Performance specifications (linked with a metric program) allow the design-builder to apply EV to arrive at a 'solution' that meets all the metrics of the owner: Price, Scope, and Schedule.
Pass this questions along..."should we value-engineer, or engineer-value?"
Dave
The real offensive part of this mis-application of Value Engineering is that 'limited' resources have been consumed (fees paid, efforts of design, documentation, bidding the design documents, etc), and the time lost can never be recouped by the Project Owner. This waste of resources and time does not, of course, need to be repeated on project after project; if only Project Owners would demand accountability...better yet, assure accountability by applying project delivery methods that demand Engineering Value (EV).Of the 3 primary delivery models available in most markets to most owners (design-bid-build, construction management @ risk, and design-build), design-build, particularly 'performance-based' design-build (as endorsed by the Design-Build Institute of America-DBIA) applies EV as a matter of practice. Why? Because the design-builder manages price, design, and construction under a 'single source of responsibility' contract. Price targets are in place, and since the DB manages design (i.e. the influence of all costs) they have the power to influence/manipulate price on an iterative basis from the beginning of design (particularly performance-based).
In addition, EV is a natural fit with performance-based design-build because it leverages the owner's 'performance criteria'. As taught by DBIA in their 'Owner Series' training classes; performance-based specifications is the instrument that allows the design-builder to 'auto-correct' and fulfill the owner's expectations. Performance specifications (linked with a metric program) allow the design-builder to apply EV to arrive at a 'solution' that meets all the metrics of the owner: Price, Scope, and Schedule.
Pass this questions along..."should we value-engineer, or engineer-value?"
Dave
