PROJECT FEATURE VALUE ENGINEERING CURBS COSTS

Value engineering can be used to explore alternate designs and alternate materials, and choose materials that are readily available and do not have long lead times. “We can also utilize scheduling tools that allow us to optimize construction times and enable subcontractors to continue working without waiting on other trades,” explains Mark Livesay, vice president, Automated Warehousing, ESI Group USA.

Livesay recalls one project that required a long cabling run of 460V 3-phase power. “As an alternative, we used medium voltage gear and cabling that saved more than $1.5 million. In another case, a customer had specified a certain brand of dock equipment that was not as robust as another brand, which was an acceptable substitute. We presented the differences in the equipment and the cost savings, and the customer ultimately saved more than $100,000 on six dock positions.” “When we get the subcontractors involved early on a project, they are more encouraged to seek alternate ideas not initially considered.”