Value engineering is defined as performance divided by cost. If you maximize performance and reduce cost, you increase value! This is the most important step in the planning of your new home.
Planning and design are the two stages of the building lifecycle where value analysis creates the most, well, value. The size, shape, and orientation of your home will all have an impact on your overall cost. Taking the time to explore these considerations during the planning stages will mitigate cost-cutting decisions later in the game that may jeopardize the very features that made your new home uniquely yours.
Value engineering is used to solve problems, identify and eliminate unwanted costs and improve function and quality. The set of disciplined steps in the value engineering process is meant to optimize initial and long-term investment, seeking the best possible value for the lowest cost.
*Graphic from Gordian
The key is deciding early on what features matter most to you & your family. Establishing a “need to have” and “nice to have” list can help prioritize what's important to you. Is energy efficiency more important than high-end finishes? Does the basement need to be finished or can I redirect that cost to my outdoor living area or other areas of the home?
Establishing and adhering to your budget from the beginning stages will help guide your build and is a critical step to avoiding costly changes once construction has started. Fewer decisions will need to be made and will ultimately equate to fewer things going wrong during the process.
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Value engineering is defined as performance divided by cost. If you maximize performance and reduce cost, you increase value! This is the most important step in the planning of your new home.
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