Value Engineering
Design Build/Design Assist (PDF)
| Pre-Construction Stage A key factor that sets construction management apart from general contracting is pre-construction. The pre-construction phase is the most important state of a project and actions / decisions made during this period can significantly affect the budget, schedule and quality of a project. There is no substitute for proper planning. The depth of our preconstruction services capabilities is unparalled and uniquely positions our organization as a true partner with our clients.
Input into analyzing and making suggestions as to more cost-effective methods of construction, materials, equipment, staging and scheduling is instrumental in realizing and maintaining budgetary constraints. Unfamiliarity with the value engineering process between the Architect and the General Contractor in a value-engineering program can seriously undermine its effectiveness. We have been involved in a substantial amount of value engineering programs over the years. Our relationships with superior design firms and architects have always been excellent as we all work together for the best interest of the owner/project. Our General Contractor/Architect relationships are paramount in creating an effective value-engineering program.
Of utmost importance in terms of commitment to value engineering is our top-down management approach. Effective planning is vitally important to the successful outcome of every project. Your project will not be handed off to middle management. With Burke Construction Group, the value engineering, cost containment approach, and construction services start with the principals of our company. There is no timeline for value engineering as this is an ongoing process. As such, you will receive full commitment from company principals throughout the design and construction process. Our clients appreciate the advantage offered by our systematic approach to pre-construction; one based on knowledge and experience.
Construction Stage The key to success in the value engineering process lies in cost containment. The following is a brief discussion of each cost area and Burke's method of containment:
Labor Costs Value engineering can directly reduce labor costs. Burke Construction Group, throughout the course of the project we will make value engineering suggestions in order to reduce labor hours while maintaining a high standard of quality. There are two variables that can compromise labor costs; labor cost per hour and the labor hours expended to accomplish a given task (i.e. efficiency). Labor rates can vary depending on each trade and/or particular subcontractor and will be addressed during the bid stage. However, the most predominant factor influencing labor cost is labor efficiency. Labor efficiency can be greatly increased through proper planning and scheduling. Planning and scheduling begin in Burke's pre-construction meetings where all facets of the project are discussed. These meeting are critical to the proper coordination between all subcontractors on the project. Potential problems are discussed and resolved. The specific sequence for each task to begin and completed are scheduled.
Materials Costs Value engineering can greatly influence materials costs. Throughout the course of the project, Burke will make value engineering suggestions to the architect, proposing alternate materials and equipment in order to reduce materials costs while maintaining the same standard of quality. Materials are competitively bid to suppliers in order to receive the most competitive pricing. Proper procurement of all materials is imperative in order to maintain an aggressive construction schedule and avoid labor cost waste. All material delivery dates are closely monitored by the subcontractors and Burke Construction Group.
Fixed Price Subcontractors Major subcontract work is competitively bid under a fixed price contract.
It is important to note that Burke's stature and experience within the marketplace, combined with our significant purchasing power, is invaluable in terms of cost savings, as we are capable of drawing the best pricing from local material suppliers, subcontractors and vendors.
In summary, our specific model of value engineering procedures has proven time and time again to reduce costs both in the design stage and during the course of construction. |