There are a number of reasons why modular buildings are up to 20% less costly than conventionally built structures. In this installment we examine the eighth reason behind the cost savings associated with modular buildings: how Palomar’s value engineering strategies save our client’s money and increase the value of the completed project.
As defined by the Office of Management and Budget, value engineering or value analysis (VA) is “an organized effort directed at analyzing the functions of systems, equipment, facilities, services, and supplies for the purpose of achieving essential functions at the lowest life-cycle cost consistent with the required performance, reliability, quality, and safety.”*
Value engineering concepts have been applied to construction projects in numerous ways for more than 30 years. The purpose of value analysis is to improve the value an owner receives from a constructed project. This value can be shown as the relationship between the functional benefits of a project and the cost required to obtain them. Improved value results from optimizing this relationship as expressed in the following equation:
Value = Functional benefits ÷ Cost
Palomar regularly incorporates value engineering strategies to find optimum value for our client’s projects. Applying value engineering concepts to Palomar projects for several years gives us the experience to draw from to expedite the process on successive projects. In short, while Palomar continues to apply value engineering concepts during our project design phase, insight gained from years of value engineering has proven which building materials and systems are the best choice for all of our client’s needs.
Contact Palomar Modular to learn more about how Palomar’s incorporation of value engineering concepts can improve value and, in-turn, save money over conventional construction.
* Excerpts from Value Analysis, Michael D. Dell’Isola, PE, CVS