Value Engineering: The Mantra of Cost-Cutting in Construction Industry

Affordable housing is not a new concept now, it has become a very crucial part of the Indian real estate sector. It is not only an ambitious mission to be achieved, it is the need of the hour in a shelter-starved country like ours. A roof over the head is a basic necessity and making homes affordable is the only way to make it possible for everyone. The government is taking major steps in the direction. One such method is Value Engineering.Value Engineering The Mantra of Cost-Cutting in Construction Industry

What is Value Engineering?

Value Engineering is the systematic way of reducing the costs involved in construction of projects while maintaining the superior quality of the resulting product. In a quest to offer something unique and better than their competitors, builders try to use high-grade raw material of construction. This only adds exorbitant costs to the process but the end result is not very satisfactory.

This is where Value Engineering comes into play. It segregates the reasons behind high costs of large-scale construction and devises a proper planning to cut down those costs. It is not only concerned about the techniques of construction, but starts right from planning and designing, this is why sometimes it is also referred as ‘Value Management’. A vigilance over the planning phase could save 15-20%.

Stages of Value Engineering

The concept of value engineering is in its initial stages in India but in other countries it is quite a developed phenomenon. It is carried out in six steps:

i) The information stage wherein all the information related to the project are assembled together in order to have a better understanding of it.

ii) The analysis stage wherein the functions of all the elements are elaborated to know what the project is exactly supposed to accomplish.

iii) The brainstorming stage wherein alternative ways are considered to effectively achieve the core function of the project.

iv) The evaluation stage wherein the alternative ways of the previous stage are analysed to find the most feasible and effective method.

v) The development stage wherein the chosen most feasible alternative is selected and worked upon. It involves planning the narratives, creating sketches and defining the specifications.

vi) The presentation stage wherein the planned and prepared alternative solution is duly presented before the stakeholders.

How Value Engineering supports Affordable Housing?

Value engineering focuses on the development of innovative methods of construction that will be very helpful in overcoming the ambiguities in the construction industry and solving the same through a set of creative alternatives. Increased productivity, cost reduction and quality end product are the three main advantages of value engineering.

Under affordable housing, builders are expected to provide the trending residential housing options at a defined price limit. So, instead of using the higher grade elements, developers can resort to value engineering to increase productivity at the same cost. When unnecessary costs are cut down, construction will become less costly,thus the end product will be more affordable. Value engineering is the futuristic method of changing the face of Indian real estate.

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