Value engineering a residential development is a complex process. Implementing value engineering strategies from the preconstruction planning phase helps increase the profitability and efficiency of the project. Here are three ways to value engineer a residential development.
Cost reduction
One of the primary objectives of value engineering is to reduce costs. This can be achieved by using materials and systems that are more cost-effective, streamlining the construction process and optimizing the design to reduce waste and rework. For example, using prefabricated building components can reduce construction time and labor costs, while designing for flexibility in future upgrades can save money on future renovation work.
Examples of cost-reducing value engineering may include design finishes, building envelope systems and tracking material shortages and cost increases.
Improved functionality
Another key aspect of value engineering is to improve the functionality of the development. This can be achieved by incorporating features and systems that enhance the living experience for residents, such as incorporating smart home technology, optimizing space utilization, and providing sustainable or water-saving fixtures. These features not only increase the value of the development but also make it more appealing to potential buyers and renters.
Examples of improved functionality may include green building, analyzing insulation values and building structures to last.
Time and schedule reduction
Creating better processes and using the latest systems and technology can decrease construction time, therefore improving financing costs, lease-up times or time to market (for sale).
One example of how vertical construction times may be decreased can be seen in the architecture and structural design of roof systems. Using prefabricated trusses within the design and build of townhomes or single-family homes adds efficiency to community construction. Using prefabricated trusses, joists and floor systems increases framing production significantly, which contributes to a quicker building and achievement of the certificate of occupancy. Alternatively, not using prefabricated components can often double project completion and delay move-in day.
Risk mitigation
Finally, value engineering should focus on reducing risk. This can be accomplished by using proven, reliable building materials and systems, ensuring the design meets all relevant building codes and regulations, and conducting thorough cost estimates and construction schedules to minimize delays and cost overruns. By proactively managing risk, developers can protect their investment and increase the chances of project success.
Value engineering is an important part of any residential development project. Having an experienced design-build partner that has professional knowledge to guide the project is a must. By reducing costs, improving functionality and mitigating risk, developers can increase the profitability and efficiency of the project while delivering a high-quality living experience to residents.
Contact Harrison Homes to discuss your upcoming community.
Harrison Homes is a design-build firm comprised of a group of professional residential construction experts and developers. We are a single-source solution for townhome and detached single-family home communities for build-for-sale and build-for-rent residential projects.
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