A significant component of the 
preconstruction service is focused on value engineering. Our studies focus on evaluating solutions that meet the Owner’s program objectives at the least long-term cost. The value engineering process is unique in several respects:
- Alternatives are considered that may allow for either cost savings or time savings to the owner. Cost savings have an immediate impact to the bottom line of the project cost. On the other hand, time can have a significantly important influence in the final proforma for the project. Our participation keeps the project team’s sensitivity to both issues equally in focus.
- For value engineering to be effective, one must track the design decision process to achieve results in a timely way. The protocols of the review and recommendation process are structured to maintain control of this process and insure results.
- The creation of our initial budget as described under cost estimating is in and of itself a form of value engineering. Through the initial budget, puts forth our concept of the most efficient cost approach to the project. Our experience has shown that sometimes the review of the initial budget alone prompts discussion with the design team that lead to constructive changes in design direction that would have only occurred after time and energy had been misapplied by the design team.
- Operating costs are always analyzed as a part of any design review. If the equipment can be maintained or operated more efficiently in the long run by using a different approach, this is brought forth for consideration. Conversely, sometimes the design in the pursuit of operational ease or utility savings spends more on equipment and installation than can ever be saved through operational savings. The most high tech or “green” design is not always the most cost effective to the Owner, even in the long run. We will play a role in determining this and make sure the design choices made are made for the right reasons.
- KKG has formalized value engineering into a four-step process:
- Identification of alternatives
- Evaluation of alternatives
- Cost studies of selected alternatives
- Approval & implementation