Embracing ‘genuine value engineering’

Until recent years the term ‘value engineering’ within the construction industry has been used by engineers to add genuine value to a proposed concept. For example, optimising spatial layout can increase rental yields. Or by identifying alternative servicing arrangements the building height can be adjusted, resulting in additional net floor space and substantially reduced material costs.

Due to the current economic environment of rising prices and worker shortages, value engineering is now more about meeting a cost plan by way of reduction of what is there, as opposed to adding genuine value to a proposed concept.

 “My fear is that we look back in 10-20 years’ time at the buildings under design and construction in this challenging period to see durability issues arising precisely because of the value engineering decisions being made now.”

Read the full article in Property Council of Australia.