HOW TO VALUE ENGINEER YOUR SCOPE OF WORK

You have the ideal scope of work complete with everything you would like, but after reviewing the proposals received you realize that something’s got to give. Your budget will not allow for all of the things on your “wishlist” scope, so what do you do?

You need to value engineer the scope.

Investopedia defines value-engineering as:

Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes.

There are many ways you can value engineer your scope of work. Some basic steps we take when working with a client to value engineer their scope are detailed below.

COMPETITIVE ANALYSIS

Before you start removing items off of the scope, we recommend completing a comprehensive competitive analysis. Compare the major materials used across all properties with what is being proposed in the scope. This includes materials used for cabinets, countertops, appliances, flooring, etc.

FUNCTIONALITY

Are there items in the scope that are a necessity to the overall success of the asset? Sift through the items and categorize which items are necessary to keep and which are not really needed as much.

A great example would be with baseboard selections. Baseboards are more decorative in nature (although they can help protect against dirt and debris on the bottom of the drywall and between the wall and flooring.)

If your scope of work calls for 5 inch baseboards, but you need to cut corners, consider going for either a less expensive baseboard or quarter round, if that works well with the flooring chosen. Baseboards are more decorative in nature (although they can help protect against dirt and debris on the bottom of the drywall and between the wall and flooring.)

ALTERNATIVES & COST SAVINGS

Research and review alternative materials that will bring with them cost savings.

For example, if quartz countertops are on your current scope of work and the competitors are offering granite or laminate, you may want to opt for the lesser expensive countertop material. The same comparison strategy should be used when looking at appliances, flooring, and cabinets.

Instead of installing brand new cabinets which is costly, if the cabinet boxes are in good shape, why not consider painting the boxes and installing new cabinet doors?

Value engineering the scope of work alongside our clients is just one of the many value-added benefits of working with us. We work closely with each of our clients to ensure they are positioning their assets in the best light.

HOW TO VALUE ENGINEER YOUR SCOPE OF WORK