Value Engineering in Alternative Delivery-
it's more than simply cutting costs
In recent years, there has been a shift in the way many projects are being delivered at K-12 school districts throughout the Northwest. Many districts are exploring alternative delivery methods such as General Contractor/Construction Manager(GC/CM), Design-Build and Progressive Design-Build to help accommodate the demands of fast-tracked, complex, and multi-phased projects.
While State law (WAC 392-343-080 & 392-344-065) requires that a Value Engineering (VE) study be conducted on all major construction projects that receive state funding, there is often an assumption that the contractor can “take care of VE” by managing construction costs alone. This is one of the most common misconceptions about VE – that it is just about lowering costs. While construction costs are one factor that is analyzed, a more beneficial VE process is one which follows a rigorous process and focuses on identifying opportunities that improve long-term value and are in the best interest of the owner. Integrating the expertise of an experienced VE team is highly beneficial to the success of the project and is a valuable tool when combined with the skills and knowledge of the GC/CM.
For Central Kitsap's GC/CM Olympic High School project, the District had MENG Analysis perform a VE which included some of the Korsmo team members. William Floyd, an estimator with Korsmo Construction said, " Being a part of the study helped us to identify the major project risks we as a contractor were facing/about to face & put a plan in place early on to mitigate those risks. On this particular project, we were essentially doing open heart surgery on the school, all while it was still operational, which created a lot of inherent risk. Having Kormso, the architect, the engineers, and outside consultants in the room all together early on proved key in identifying risk factors, as well as coming up with unique solutions to mitigate them.
Keys to VE Success
Focus on function, resources, and quality.
Engage professionally licensed, multi-disciplinary VE study teams with a SAVE International certified team leader.
Develop solutions that align with the District's project objectives, standards, and educational learning environment goals.