Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
Value engineering is a structured review of the design and specification to deliver each element's required function at the lowest life-cycle cost, without harming quality or safety. It works best at design stage, before tender.
Why it matters on a project
Applied early it can save a real share of project cost, for example by changing the slab system, reducing spans or standardising window sizes.
Measurement and pricing
Options are compared on whole-life cost: supply, installation, maintenance and energy over the building's life, not supply price alone.
Common mistake
Calling a specification downgrade value engineering, such as swapping insulation for a weaker one, which raises the owner's running costs.
Frequently asked questions
When is value engineering applied?
Best at concept and detailed design before tender, because changes after contract become costly variations.
Who does it?
A team of designer, owner and cost engineer, sometimes with the contractor in design and build contracts.
Related terms
- Engineer’s estimateThe cost estimate prepared by the consultant or owner to compare contractor offers.
- Concept designThe first design stage: idea, massing and general layout without construction detail.
- Unit rateThe item price per unit of measure, built from material, labour and equipment then indirect costs and profit.
- Variation order (VO)A written instruction changing scope, quantity or specification, with its price and time effect.
Read next
Does your project need quantity take-off and BOQ pricing? Send the drawings or a short description and we reply within one working day.
Service detailsRequest a quote