Commercial Construction | Value Engineering: What is it & How to Realize Its Full Potential

Value Engineering is a process that distills value in a myriad of ways, including as a means to gain cost savings, shorten completion times, mitigate change orders, to even accelerate the submittal and approval time by the City. Value Engineering introduced proactively is not about making compromises; it is about meeting the Project objectives without compromise, including to its budget and time.

At its best, it is a process of early discovery and implementation of smarter, more practical, and efficient alternative solutions that serve to deliver the same effective results, while compounding value to the benefit of the Project and its Owner. A quality Value Engineering process requires leading an early proactive collaborative effort with the brain trust and creativity between the Owner, its architect, and those who will build the project.

Once the plans have been submitted to the City and put out to bid, Value Engineering loses much of its full potential as a last-minute reactive tool. At this point, rarely will it be feasible to deliver a means to meet the Owner’s budget and/or time objectives. Consider the greater the magnitude of all potential value from re-engineered elements will require a greater magnitude of time and cost to make the necessary revisions to resubmit to the City for approval. Virtually every element of a given system in a full set of plans is cross referenced throughout the plans. This fact often makes what could have been Value Engineered in the conceptual or even early development phases impractical to implement. I all too often see budgets and completion dates squandered by desperate Owners who otherwise would have realized double digit savings in costs and months in completion time with no compromise whatsoever to the finished outcome in every detail.


What are the Advantages of Value Engineering?

Within the constructs of a multi-disciplined team, the goal of Value Engineering is to identify areas where planning for ease of construction will keep the project on schedule and reduce costs while increasing function, quality, performance, and safety. It may seem like an impossible task, but with the right team of knowledgeable individuals all dedicated to a positive outcome, Value Engineering can help you achieve all of your project goals. In addition to keeping projects “on budget”, Value Engineering has some other advantages.

  • Helps clients identify, solidify, and prioritize objectives
  • Provides the opportunity to explore all possible alternatives and solutions within a project
  • Helps address value and function
  • Encourages timeliness
  • Assures the best value will be obtained over the life of the building
  • Assures the use of quality materials throughout the project.
  • Cost estimates and scope statements are checked thoroughly, assuring that nothing has been omitted or underestimated
  • Increases project transparency


Sierra Group’s Construction Division provides general contracting to Commercial, Industrial, and Retail industries, along with a specialty in Bank and Credit Union Branch construction. From minor special projects to complex major tenant improvements, we deliver by established best practices to save you time, money and avert distracting frustrations.

As a multi-disciplined service focused company specializing in commercial construction, we have a unique 360° perspective that gives us the ability to help you meet your specific construction needs with laser precision.

When failure is not an option, the most demanding Companies and Financial Institutions trust Sierra Group to get the job done right.

Learn more about the Sierra Group difference here, or reach out to us at:

Carl Frommer
President & CEO
818-266-7402 (cell)
(818)-637-2888 ext. 224

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