Value Engineering

What Value Engineering involves

What’s happening: To reduce costs, the owner is proposing to replace Coordination Drawings with Value Engineering.

“Systematic and organized procedure to identify the necessary function of a design in a project to provide alternative solutions at a lower cost while maintaining or surpassing original quality, safety and function.”

Definition of Value Engineering

Relying on Contract Drawings only means that all the trades are subject to field measuring and field coordination. This approach can introduce significant risks, including:

• Inadequate Field Coordination: Without Coordination Drawings, you rely solely on contract drawings, which often lack the detail needed for precise field coordination. This can result in costly adjustments and delays.
• Space Constraints and RFIs: If space is not accurately accounted for, work may need to be stopped to issue Requests for Information (RFIs) and wait for responses. This can delay the project, especially if fixtures like lights and ceilings are already scheduled, leading to potential conflicts and additional rework.
• Higher Costs and Delays: Addressing problems discovered in the field due to inadequate planning can lead to increased costs and significant project delays. The lack of detailed Coordination Drawings increases the risk of unexpected issues and inefficient use of resources.

The responsibility is put on you

When the owner requests Value Engineering for a project, the responsibility for design changes shifts from the Design Team to you.

• Clarifying roles: Your company was contracted specifically for fabrication, supply, and installation, not for managing design modifications. As a contractor, you do not have the authority to alter building parameters or address design modifications, which can be a risky responsibility.
• Implications of undocumented changes: Field changes made without proper documentation can lead to significant issues with system balancing. Without accurate records and communication, you could be held responsible for any resulting inefficiencies or operational problems.
• Limitations of Contract Drawings: Contract drawings are diagrammatic and lack the detailed information necessary to be used in the field. This leaves significant room for risk and potential clashes, as they typically do not cover all installation and coordination issues.
• Increased costs and corrections: The vague nature of contract drawings can lead to overlooked conflicts, increasing fabrication costs and requiring costly field corrections. Coordination issues such as trade intersections and pipe slopes that were not properly accounted for, may require adjustments, rerouting, or requests to lower ceiling heights. The initial designs shown on the contract drawings often need changes to fix these issues, showing the limits of the original plans and the need for detailed coordination drawings.

Preventing financial losses

To avoid the risks associated with Value Engineering and ensure smooth project execution, insist on using Coordination Drawings. These drawings are essential for detailed planning and smooth field installation. They offer precise, comprehensive information for seamless trade integration, helping to prevent conflicts, minimize costly rework, and ensure your project stays on track and within budget:

• Prevent ‘First trade on site chooses its elevation’: Avoid the issue where the first trade on site dictates the elevation, which can create conflicts and inefficiencies for subsequent trades.
• Avoid field re-coordination costs: A minor adjustment by one trade can prevent significant rework and coordination issues for others. Addressing potential conflicts early before installation is a more cost-effective approach than making corrections in the field, minimizing the need for expensive rework and material wastage.
• Save on fabrication costs: Accurate and detailed planning reduces errors in fabrication, preventing costly modifications and material wastage. Effective coordination ensures that fabrication aligns with actual field conditions, avoiding costly adjustments later.
• Keep the project on schedule: Proactive coordination and early issue resolution help maintain the project schedule, avoiding delays and the associated loss of productivity.

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