Value engineering is a systematic 6-stage approach to identify and implement cost-saving measures in a commercial construction project without compromising quality or functionality. Retail and Tenant Finish (RTF) General Contractors collaborates with engineers and architects early on in the project to analyze every step of the process and ensure maximum value for owners and investors. On average, this approach to commercial construction can save owners and investors 15 – 20 per cent in capital costs, without compromising quality.
Below you will find the top 10 levers Retail and Tenant Finish General Contractors pulls to value engineer projects in the retail, medical, restaurant, and religious building construction space:
- Material substitutions: Identify alternative materials or products that offer equal or better performance but at a lower cost. This could involve exploring different building materials, brands, finishes, fixtures, or equipment.
- Streamline design: Collaborate with architects and engineers to simplify the design while maintaining functionality and meeting building codes. Eliminate unnecessary complexities that drive up costs without adding significant value.
- Efficient space utilization: Optimize the layout in CAD and space allocation within the project to eliminate wasted or underutilized areas. This could involve reconfiguring floor plans, adjusting room sizes, or exploring shared spaces.
- Systems optimization: Evaluate and optimize mechanical, electrical, and plumbing systems for energy efficiency and cost savings. Consider technologies like LED lighting, smart controls, or energy-efficient HVAC systems to reduce long-term operational costs.
- Construction methods and techniques: Explore construction methods that can improve efficiency and reduce costs without compromising structural integrity. Prefabrication, modular construction, or alternative construction techniques can offer advantages in terms of time and cost savings.
- Value-based subcontractor selection: Engage in a competitive bidding process to select subcontractors while considering their experience, expertise, and cost competitiveness. This can help secure competitive pricing without compromising quality. With 32 years of experience in Atlanta, Retail and Tenant Finish General Contractors has established long-term relationships with some of the best subcontractors in each trade.
- Lifecycle cost analysis: Consider the long-term costs associated with operating and maintaining the building. By investing upfront in energy-efficient systems, durable materials, or low-maintenance finishes, you can reduce future operational and maintenance expenses.
- Value engineering workshops: Conduct value engineering workshops involving key stakeholders, including architects, engineers, contractors, and owners. This collaborative approach encourages brainstorming and generates innovative ideas for cost savings.
- Phased construction approach: Evaluate the feasibility of a phased construction approach, where certain areas or components of the project are built in stages. This can help manage cash flow, secure financing, and allow for adjustments based on changing needs.
- Project management and scheduling efficiencies: Enhance project management practices to minimize delays and optimize resource allocation. Efficient scheduling, coordination of activities, and proactive communication among team members can reduce unnecessary costs and improve overall project efficiency.
It’s important to note that value engineering should be implemented early in the design and planning stages to have the most significant impact. Additionally, with this added level of scrutiny in the construction process, general contractors, owners, and architects are better able to improve on best practices. Engaging a qualified team of architects, engineers, contractors, and consultants is crucial to effectively apply value engineering principles and identify cost-saving opportunities while maintaining project quality and functionality.
For questions regarding RTF General Contractors and how our firm can help you realize your next commercial construction project, please feel free to reach out today.
