Budgeting doesn’t have to mean sacrificing the quality of your upcoming commercial construction project in Houston for cost efficiency. The truth is that the number one pressure faced by the majority of project managers is budgetary oversight. Because of that, every decision you make in the pre-construction phase is essential for securing financial gain and preventing budget overruns. The best way to do this is by investing in smarter value engineering instead of cutting corners and shaving down your budget while lowering the quality of your product. At Keeton Construction Services, our general contractors have been lowering project costs through value engineering since 2001, making our team the ideal solution for optimal project management.
Defining the Strategic Approach: Value Engineering
You may be wondering, “What even is value engineering?” The definition of value engineering is that it is the defining process that separates good construction from excellent, highly efficient construction. While this might seem like choosing the cheapest option in order to safeguard your budget, the truth is actually far from it. The true function of value engineering is rooted in precise, expert analysis and prioritizes analyzing every single phase and nuance of your specific project in order to deliver high-quality, reliable performance while operating at the lowest cycle of life cost.
This process is imperative due to the widespread nature of budget overruns in commercial construction projects, especially in a highly dynamic city like Houston. It is estimated that around 98% of construction projects exceed their budget, largely due to poorly planned engineering during the pre-construction phase. Because of this, a systematic, organized approach to not only analyzing the function of a project’s systems, but also the materials, products, equipment, and services to find the overall lowest life-cycle cost that is cohesive with the required performance and reliability. The key isn’t just cutting costs, it’s maximizing value in relation to its desired function.
The five general phases of a highly efficient value engineering process include:
- Information phase: Understanding the specific current designs and overall goals.
- Function analysis phase: Defining the essential functions of a project and ranking their specific priority.
- Creative phase: Our team of experts can help brainstorm and design alternate ways to optimize functionality.
- Evaluation phase: Taking a second, more full-scale look at the budget and ways to designate specific funds based on cost, performance, and life-cycle costs.
- Recommendation or presentation phase: We can provide tailored recommendations in terms of design and scale.
Examples of Effective Value Engineering Alternatives in Construction
The reality is that value engineering encompasses more than arbitrary material swaps for cheaper, though less reliable, options; it’s about strategic, data-driven system swaps aligned with long-term goals.
One way our team at Keeton Construction Services can mitigate the risk of budget overruns through value engineering is by switching from a custom curtain wall system to a standardized, modular system. Or, by choosing an equally performing, yet locally sourced material over a more expensive, imported product. Not only does this example lower costs, but it also eliminates shipping delays and schedule risks.
Additionally, you can protect a large portion of your budget by strategically pre-planning your HVAC zoning and pipe routing for efficiency. Lastly, based on the specific span and load of your project, the structure may be swapped to a precast concrete-based structure instead of steel to save money in the long run, without sacrificing stability.
How Cutting Corners Derails Commercial Construction Projects
Although it might seem like cutting corners in some ways is a fully safe, effective method for cutting commercial construction costs in Houston, the truth is that it is actually a short-term fix that typically becomes a major, long-term liability for the final project. This is primarily because this method sacrifices quality and rigor for the sake of immediate reduction in spending, resulting in increased operational costs and multitudes of failure down the line.
Cutting corners often leads to high hidden costs, including increased maintenance down the line. This is because cheaper materials rarely last as long as their slightly more expensive counterparts, especially for high-use parts of a project, such as roof membrane or flooring.
Additionally, cutting corners can also contribute to operational inefficiency and higher utility bills for future tenants of the commercial building. This could include things such as poorly insulated walls or cheap windows, resulting in skyrocketing utility costs throughout the extent of its usage. Sometimes, there can also be major code violations and safety risks associated with cutting corners and opting for cheaper, less reliable materials.
Lastly, the most costly factor when it comes to cutting corners is the impending rework on the horizon. Because materials and systems that are cheaper don’t last as long or perform as well, the likelihood of failure that results in requiring rework or replacements increases exponentially.
Working With a General Contractor to Facilitate Smart Choices
The most dangerous thing a company can do is try to cut costs without dedicated, professional commercial construction guidance. Because of this, the role of a trusted general contractor like Keeton Construction Services is imperative for acting like an honest financial advisor while ensuring that your project continues safely and efficiently, while lasting for years to come. This means that your general contractor should be fully vested in the project from start to finish in order to create accurate and precise estimates and plans for the project as a whole.
We do this by first creating a true budget that is driven by life-cycle cost analysis data. By doing this, we can project the long-term success of the project, instead of relying on figures based on the present. Similarly, opting for value engineering is also an effective way to mitigate future reliance on reactive repair and replacement, which is one of the biggest factors for future budgeting. These predictions look far beyond the purchase price, instead factoring in things such as:
- Energy use
- Maintenance
- Replacement costs in 10-20 years
- Supply chain dynamics
By looking at this specific data, we can reduce costs in appropriate ways while still maintaining optimal quality of work and longevity for the project as a whole.
Protect Your Construction Investment With Value Engineering
Value engineering versus cutting corners is integral to any successful commercial construction project in Houston. Along with this, the most vital aspect of value engineering is solid, tried-and-tested, commercial construction expertise. Because of this, working with Keeton Construction Services is non-negotiable for not only saving money on your next project, but doing it in a safe, efficient way that benefits you both in the short term and long-term future.
Although it might be tempting to opt out of professional construction expertise, this is the fastest way to destroy your budget and long-term goals. Instead, choose a team that has invaluable experience and strives to find unique, tailored solutions for each of our turnkey design and construction clients, regardless of their budget and goals. If you have a commercial construction project in Houston on the horizon, choose Keeton Construction Services for reliable, effective, and affordable services. Contact us today for a free commercial construction estimate in Houston.