The False Saving

Value engineering is meant to protect budgets. Too often, it becomes a box-ticking exercise that strips out quality without actually reducing cost.

Where Does It Go Wrong?

• Swapping materials for cheaper alternatives that don’t perform.
• Cutting scope without analysing lifecycle impact.
• Making late-stage changes that drive up prelims and rework.
• Focusing on short-term savings instead of long-term value.

The Root Cause

Most value engineering exercises are rushed, reactive, and driven purely by cost pressure. Without proper analysis and collaboration, VE becomes cost-cutting, not value creation.

Real-world example:
On a £30m healthcare project, cheaper flooring was selected to “save” £120k. Within two years, replacement works cost the client £450k – turning a short-term saving into a long-term loss.

How to Get It Right

• Involve all stakeholders early in VE workshops.
• Balance capital cost against lifecycle and maintenance.
• Assess programme impact before approving changes.
• Benchmark options against industry data, not assumptions.

Final Thought

True value engineering reduces cost without reducing quality. Anything less is just cutting corners – and those corners cost more in the end.

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