There are several reasons why modular buildings can be up to 20% less costly than conventionally built structures. In this installment, we explore the eighth reason for the cost savings associated with modular buildings: how Palomar’s value engineering strategies help our clients save money and improve the overall 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 to achieve essential functions at the lowest life-cycle cost consistent with the required performance, reliability, quality, and safety.”*
Value engineering concepts have been used in construction projects for over 30 years. Value analysis aims to enhance the value an owner gets from a finished project. This value is represented by the relationship between a project’s functional benefits and the cost to achieve them. Better value results from optimizing this relationship, as shown in the following equation:
Value = Functional benefits ÷ Cost
Palomar consistently uses value engineering strategies to find the best value for our clients’ projects. Having applied value engineering concepts to Palomar projects for many years gives us the experience to speed up the process on future projects. In short, while Palomar continues to apply value engineering concepts during our project design phase, the insight gained from years of experience has shown which building materials and systems are the best choices for all of our clients’ needs.
* Excerpts from Value Analysis, Michael D. Dell’Isola, PE, CVS
