OPERATIONS: VALUE
Save Money with Value Engineering VALUE ENGINEERING EMPOWERS DEVELOPERS TO MAXIMIZE SAVINGS AND ACHIEVE SUCCESS IN CONSTRUCTION PROJECTS.
TAYLOR MILLER
W hether developing will face challenges ranging from rising material costs to tight timelines. Value engineering could be the beacon of efficiency and cost savings you didn’t know you needed. commercial or residential projects, project coordinators Value engineering is a process of opti- mizing a project’s design, materials, and construction methods to improve its value. This strategy allows a developer to secure more favorable financing terms, streamline design, reduce waste, and increase effi- ciency for any given construction project. Let’s dive into how value engineering empowers developers to maximize
savings and achieve project success on a timeline that fits their needs.
phase of the project, before designs and construction plans have been drafted. As an example, some lenders may prefer green building designs that focus on energy-efficient materials, window placement, and energy-conscious mechanical systems. For return-on- investment purposes, a lender may prefer to lend on this type of construction. By identifying cost-effective measures to reduce energy consumption and minimize the project’s carbon footprint, lenders can take advantage of grant programs that provide funding for the use of construction materials that produce lower levels of environmental impact. Developers are more likely to have project financing
ATTRACTIVENESS TO LENDERS One of the primary benefits of value engineering is its ability to make projects more attractive to lenders. Lenders assess the risk associated with financing a project based on factors such as budget, timeline, and potential return on investment. Value engineering enables developers to present lenders with comprehensive plans that demonstrate a commitment to cost-effectiveness and efficiency. This is why it is crucial to introduce value engineering in the pre-construction
52 | think realty magazine :: may - june 2024
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