A Deep Dive Into Value Engineering

This week's episode - 80 of The Subcontractors Blueprint podcast is a rerun of Episode 19, in which Jacob Austin discusses the topic of Value Engineering and Whole Life Costing. He starts by defining these two phrases which are widely used in the industry. He then gives some historical context to value engineering and how it has evolved into what we know today. Jacob highlights some interesting reasons behind particular materials being specified and how these may affect the implementation of value engineering. He also gives some practical advice on how to deal with value engineering requests, what to do to avoid the risks and ensure the full impact is considered prior to proceeding. Throughout the episode, Jacob imparts his industry wisdom to help subcontractors manage the value engineering process.

KEY TAKEAWAYS:

• Value engineering is a process of buying the best performing product or output for the least financial outlay.
• When submitting value engineering options it is important to establish what is driving the selection of the specified products. Sometimes these are not obvious, and may come back to bite.
• If multiple performance requirements must be considered, they can be evaluated by the formula: Product Value = Function ÷ Cost
• A full spec or datasheet for any products you propose should be submitted alongside the price and ensure that the contractor and their architect review it in detail prior to committing to changing.

BEST MOMENTS:

"All it is is ripping out any value from a project and substituting it with cheap alternatives"

"In my experience how we implement it in construction is all to do with cost reduction"

"Sometimes the best savings can be quite radical"

"It just goes to show you never can tell what someone else is going to want and if you can, your skills are probably best employed somewhere else"

Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.

HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

Instagram - www.instagram.com/qs.zone/

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