The project needs to be viable and you need to secure agreement to it but this is also the opportunity to define what value you aim to get out of the project and justify it.
You should consider:
- Ensuring value engineering (VE) occurs throughout the project
- Incentivising the supply chain to propose VE solutions
- Avoiding VE becoming a “cost cutting” exercise
Ensure VE occurs throughout the project
Undertake regular VE workshops, throughout the project, to include customer/end user and stakeholders. This will help to ensure that the team does not lose sight of what “value” means to the customer/end user.
Incentivise the supply chain to propose VE solutions
Cultural, contractual and commercial drivers can be utilised to incentivise the supply chain to propose VE solutions.
If the team has been built around the principles set out in this guide at the Concept stage then, culturally, there should be sufficient alignment between the partners to deliver positive gains for the project rather than a “win” for some and a “loss” for others.
Contractual arrangements, such as pain/gain sharing under, say, NEC3 provides partners with a financial incentive to work together positively to find solutions within a defined budget.
Long term collaborative relationships offer an excellent incentive for continuous improvement through the promise of continuing work if accompanied with good performance.
Ultimately if the financial arrangements between partners are such that everyone “is in it together” then all will actively propose VE solutions to deliver a successful project.
Avoid VE becoming a cost cutting exercise
The best way to ensure that VE does not become a cost cutting exercise is to include the customer/end user and stakeholders in all VE related discussions. This will help to ensure that the team does not lose sight of what “value” means to the customer/end user.