Concept
Value
engineering as the name suggests, is a systematic approach to reduce the
construction cost while ensuring superior quality of the product for the end
user. It primarily focuses on promising low cost construction without
compromising on the quality. In this kind of development the costs related to
the construction, designs, maintenance and replacements are considered. The rationale behind value engineering is to
avoid utilising higher-grade components in order to cut down the unnecessary
cost of the construction process. However, this process does not involve
compromising on the value and quality of the end product.
Value engineering will enable the players to
develop new methods and techniques along with increasing productivity, cost
reduction, better performance, high quality, simple design (civil, structural,
mechanical, etc.) and optimum project duration without affecting the function
of project or service. It is a creative approach which has been proved
effective in the construction scenario, and should be implemented at all levels
of the project management worldwide.
Scope
of Construction Industry
India's
construction sector is assessed at Rs.4000 billion or $100 billion. India is
ranked number one among the top ten spending nations on the construction sector
in the world. Production of cement is more than about 250 million tons in
India. A report on "Global Construction 2025", estimates that China,
India and US (United States) will account for almost 60% of global growth of
the construction sector. Government of India is spending 9% of the GDP on
various infrastructure projects. According to the Future Market Insights in the
report titled, “Construction Chemical Market: India Industry Analysis and
Opportunity Assessment 2014 - 2020”, the Indian construction chemical market
will exhibit a CAGR of 17.2%. The market is projected to reach US$ 1,890
million by 2020.
Decoding
Value Engineering
Value
engineering is an effective way of cutting down the cost and adopts different
techniques in order to achieve far greater results. The starting point for
value engineering is to isolate the cause behind high cost which helps in
devising effective strategies and analysing the ways for cost management. It is
commonly seen that around 15% to 25% of the budget could be saved by adopting
this initial step. In the construction industry, value engineering is a
systematic way which is implemented during the stages of planning, design and
construction.
Value engineering has the potential to be used in
various projects and has proved beneficial, especially in more complex and
higher value projects. Experts have observed that the cost can be significantly
reduced in the initial stage of design. If the Value concepts are implemented
in the concept stage, the savings will be higher. Strategy and planning are
emphasised in the early stage because the scope of cutting down cost will keep
decreasing as the project progresses.
It will be beneficial to analyse various value
engineering techniques, like:
1. Various types of formworks that
provide us benefit over the conventional formwork, where we save on time, cost
(in the long run) and ensure high quality.
2. Different
kinds of industrialized housing construction technologies, which have huge
benefits over conventional construction techniques.
Conclusion
Investment in the construction sector and ongoing
infrastructural developments in India have made this a crucial industry
segment. Apart from the huge investment
associated, construction sector also has variety of construction projects
involving stakeholders, materials, construction management techniques, etc. All
of these sectors widen the scope of application of value
engineering. Considering the attributes and scope of the Indian construction
industry, it will be beneficial to have more value engineering studies. This
will allow players in the sector and other industry players to identify and
overcome various loopholes faced during the construction process and overcome
the same through adopting creative alternatives. Value engineering will enable
the players to develop new methods and techniques along with increasing
productivity, cost reduction, better performance, high quality, simple design
(civil, structural, mechanical, etc.) and optimum project duration without
affecting the function of project or service.
Spokesperson:
Mr. Arvind Gowda, CEO, Expat Engineering India
Ltd (EEIL)
