Value engineering is expected to become increasingly important in the UK if Construction 2025 [i] targets are to be met and is more likely to begin to encompass a much broader definition. We can expect to see value engineering activity in design proposal, project execution, and quality and environment management plans.
We can also expect to see the definition of value engineering moving away from a pure monetary value calculation and towards one that maximises value across the board including faster delivery, emissions reduction etc.
In order to really leverage the benefits that can be achieved for businesses from value engineering activities, business managers will need to think agile, asking:
- How can they quickly and effectively, with low-associated risk, carry out detailed and comprehensive value engineering activities?
- How can they play their part in improving delivery times, reducing emissions in the built environment and reducing total cost of ownership?
Answering these questions will require a degree of process improvement for most companies and this in turn requires time investment.
However, those who do engage in this process improvement are likely to be rewarded as they will be better equipped to win contracts in an environment that is pushing construction companies to reduce waste, explore concepts such as total cost of ownership and emissions reduction and lower overall cost.
Construction 2025 Targets
Lower Costs - 33% reduction in the initial cost of construction and the whole life cost of built assets.
Faster Delivery - 50% reduction in the overall time from inception to completion, for new build and refurbished assets.
Lower Emissions - 50% reduction in greenhouse gas emissions in the built environment.
Improvement in Exports - 50% reduction in the trade gap between total exports and total imports for construction product and materials.