Many project and construction managers laud the benefits of their Value Engineering services. Linbeck’s TeamBuild® process provides more than value engineering – it offers continuous value optimization.

Value engineering is the process of offering ideas regarding materials or construction methods that meet the quality level and architectural intent but at a lower cost. While the concept is good, the typical value engineering process is wasteful because it is REACTIVE--it means that the team did not have the information necessary to make an accurate decision before the design was developed. In a typical CM structure, the Owner articulates the goals and budget parameters, the A/E team develops a design solution (e.g. conceptual or schematic design), and the CM then “prices” the solution. If the solution is over budget, a list of “value engineering” items is offered and the team moves to the next iteration of design and tries to incorporate those ideas. Unfortunately, because many firms are not skilled at conceptual estimating, value engineering often becomes an “end-of-the-road” exercise—in other words, the team doesn’t know it is over budget until after the construction documents are completed. At that point, the Owner is forced to reduce either the size of the project or, more typically, to eliminate easily removable architectural elements such a finishes.

Typical Value Engineering Process (REACTIVE)

Linbeck uses a process of continuous value optimization—A PROACTIVE APPROACH. Our belief is that our client should not pay more than is necessary to achieve the required performance for systems such as the foundation, structure, enclosure, and mechanical/electrical/plumbing/fire protection systems. To do this, we listen carefully to the Owner’s goals and budget parameters. Then, working collaboratively with the A/E team, several possible options for each building system might be analyzed. For instance, the structural system for a five-story university laboratory might be steel, cast-in-place concrete or even a hybrid of the two systems. Linbeck uses a tool known as DYNAMIC COST MODELING to analyze the cost of the different options. With accurate cost analysis information, the team can then select the most cost-effective solution that meets the client’s needs. Then, and only then, is the solution actually incorporated in the design.

The Linbeck Value Optimization Process (PROACTIVE)

Value Optimization brings together the knowledge of key players very early in the process. In many cases, the knowledge needed is at the supplier or manufacturer level. Linbeck brings those resources together in a process that allows for accurate decisions to be made. Clients, architects and Linbeck all benefit because the process is more efficient, produces less wasteful activity and ensures lower total cost of the project.