A foundation built on value engineering

In a region where skyscrapers seemingly shoot up overnight and villas are quickly constructed like intricate puzzles, the ongoing challenge is to maintain quality amidst the quantity.

Value engineering is an essential construction concept that helps reduce procurement or installation costs and ensure a project is completed within budget. It involves using real-world data and technology to identify areas where cost savings can be made without compromising the quality or performance of the overall project.

Given the region’s dynamic and rapidly growing construction industry, value engineering plays a significant role in ensuring that projects are completed efficiently and within budget constraints. This process involves analyzing various aspects of the project, such as materials, technology, and design, to identify opportunities for cost savings without compromising functionality, efficiency or performance. With the Middle East witnessing an influx of ambitious infrastructure developments and urbanization projects, the application of value engineering principles becomes even more essential to achieve sustainable and economically viable outcomes.

Challenges arise when value engineering is approached with a cost-first mindset that compromises the functionality and quality of the product. With this approach, there is a risk of substandard finished products due to a singular focus on cost reduction. In the regional construction industry, there’s a strong emphasis on competition. Prices play a significant role, sometimes resulting in compromises or oversights on specifications, quality, certifications, and regulatory compliance in pursuit of cost efficiencies. For example, a Building Services Engineer may specify a high-performing solution based on project demands. However, the contractor may choose to disregard the original specification and opt simply for a cheaper solution. If costs are cut this way across the project, the contractor risks engineering the value out of the project. In the short term, this may have cost-reduction benefits. In the long term, however, moving away from the original specification can have negative consequences for buildings, developers and end users.

The ultimate goal of value engineering is to maximize efficiency while minimizing costs. This can be achieved by considering factors such as safety measures when calculating estimates and exploring alternative engineering approaches that offer different methods of achieving the same result. For instance, Rheem’s solar hot water heaters utilize both direct and indirect solar radiation from the sun to heat water, whereas a heat pump harnesses the ambient heat in the surrounding air. Despite their differing mechanisms, both options provide sustainable and renewable energy solutions.

With this in mind, if value is defined as the ratio of function to cost, it can be enhanced either by reducing costs or by improving functionality. Therefore, the optimal approach to value engineering as a cost-saving strategy involves maintaining the core function of a design, rather than sacrificing it in the pursuit of cost reduction. True value engineering entails safeguarding the design through strict adherence to specifications, thereby preserving the project’s integrity. Deviating from specifications to reduce initial costs may result in additional expenses later, particularly in terms of maintenance, durability, and safety. As the root of value engineering is to identify areas where cost savings can be made without compromising the quality of a project, this can offer several benefits for construction projects.

In my opinion, value engineering is a term often used in the industry to justify cost-cutting practices. However, this is a common misconception. Value engineering does not mean cutting costs for a cheaper overall outcome. In fact, the primary principle of the concept is that functionality and quality must be preserved, and not reduced, as a consequence of lowering costs. Finding methods to lower costs is a welcome benefit, but the objective of value engineering is to add real value to the overall process. True value engineering should promote the planning and delivery of projects with improved performance.

Sacrificing performance for reduced costs can lead to numerous adverse effects. This can include impacting the health and safety of residents. The role of every space we create is to maintain occupant comfort and protect public health. Opting for solutions that compromise on quality, or even basic function, can not only inconvenience occupants, but lead to potential health hazards such as pipe bursts, leaks or fires. Material substitution should be based on performance, rather than just price. Often, alternative products are selected based on price, even though they are not suitable for the given application. When quality is sacrificed, safety standards are jeopardized, which can have a detrimental effect on the building and its occupants. So, whilst the intention is to cut upfront costs, the ultimate price paid may be greater than expected.

As we move forward, the construction industry is placing a much-needed increased focus on health, well-being, and sustainability. Creating human-centric spaces is integral to the progress of the industry. To support the UAE’s vision for sustainable urban development, we must prioritize efficiency, safety, and sustainability and not compromise on these elements solely for the sake of price.

Therefore, investing in high-quality, reliable products and enduring systems is not merely a financial consideration; it is a strategic move that holds the potential to yield many benefits for property owners. Beyond enhancing their ROI, these investments safeguard hard-earned reputations and, most importantly, prioritize the safety, well-being, and protection of those within. These decisions are ultimately made within the preconstruction planning phase and offer the greatest opportunity to add value to a project.

In my experience with Rheem Middle East, I’ve found that early engagement stands as a cornerstone for genuine value engineering. Recognising the paramount importance of the preconstruction planning phase empowers us to anticipate and tackle challenges proactively, averting potential pitfalls during procurement. It’s important to acknowledge that the cost of construction invariably surpasses that of engineering. Therefore, establishing a solid foundation becomes imperative for effective value engineering. True value engineering necessitates early involvement across the entire supply chain, fostering a collaborative ethos and a shared dedication to upholding the integrity of the design. This concerted effort ensures the delivery of the best product possible, aligned with a shared commitment to excellence.

With the collective goal of building strong foundations on value engineering, commitment to sustainability, and social responsibility, we’re positioned at the forefront of positive change. Our dedication to ensuring projects are constructed with resilient foundations in value engineering underscores our commitment to driving positive change. By prioritizing the creation of human-centric spaces, our focus extends beyond the mere well-being and safety of occupants to embrace a comprehensive ethos of environmental stewardship. Recognising that our actions today shape the world of tomorrow, we seize the opportunity to foster a brighter, more sustainable future for all. Through our holistic approach, we endeavor not only to meet the needs of the present but also to safeguard the well-being of future generations, ensuring that every decision reflects our unwavering commitment to progress and prosperity.