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gemengservs · 1 year
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Why to Integrate Quantity Takeoff is Top Priority?
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Any Estimator or Quantity Surveyor will reveal to you that they have mastered the ruler and pencil in their profession and have the ideal formula to gauge a design with good accuracy. However, in the previous years, new efficiencies is quantity take-off for Estimators and Quantity Surveyors are now accessible after the demand to enhance a visual design construction environment.
Measuring quantities is a key component in the generation of exact estimates and when re-designing bill of quantities on a tender. Quantities drive project costs and accordingly are basic to the estimating procedure.
Electronic take-off versus manual take-off
Aside from the software being more accurate, most applications offer tools to feature and increase remarks on issues and offer with different parties included. A significant part of the effort in the offering and cost control stage is useless if the resulting control of the quantities on a bill of quantities is inaccurate.
Evaluating database
Frequently quantity take-off is considered as the “brain drain” when drafting bills of quantities. Even you keep up an excel spreadsheet layout, staying up with the latest with resource pricing and worksheet details can be time rigorous. Numerous contractors think that it is more effective to populate their estimates utilizing a software database that stores all items, pricing sheets, profitability factors, equations, and other evaluating points of interest.
Built-in error protection
In development where spreadsheets are utilized across various roles and disciplines to catch and manage information, errors will probably happen. Just by basically physically capturing quantities onto an excel spreadsheet, you risk under or over measuring on a tender.
Is integrating quantity take-off a top priority?
The dominant part of those utilizing electronic take-off would need the combination with an estimating application. While this specific topic does not discuss integration with BIM (Building Information Management), you should consider how estimating procedures will flow if the planning of quantities were to come directly from the Drawing. I.e. Revit or AutoCAD. This would likewise have enhanced controls when re-designing a bill of quantities, procurement, monthly valuations and subcontract management.
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gemengservs · 1 year
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Smart Ideas for Smart Construction | GEM Engserv
Inefficiencies, for example, project extension and planning slip, have the greatest effect on cost overwhelms. Be that as it may, the primary factor for exploding construction costs is as yet an absence of efficiency. Another significant cost driver is rework time.
So, here are 7 ways to improve construction productivity:
1. Utilize creative technologies The fastest approach to expanding productivity is to implement innovative software in your everyday operations. This is a smart idea for two reasons:
· Installing software in your business schedules isn’t as difficult as e.g. adopting new machines or controls. Cloud-based, software is simple but difficult to utilize and enables you to start quickly. Moreover, every worker satisfies the equipment conditions by simply having a cell phone or tablet.
· Implementing efficiency software will quickly support your arrival on the project.
2. Improve Planning Begin with analyzing each job position in your organization by splitting each task into subtasks. This enables you to uncover inefficiencies during the procedure and in addition acquire adaptability on location. Improving information is the next significant step. Try to combine information from whatever number fundamental task people as possible in real time utilizing technology.
3. Shorter contracts It is basic to hammer out however much detailed contracts as possible to cover up all eventualities which violate the mark in terms of what is really needed. This makes it difficult for colleagues to draw in easily with each other and reduce construction efficiency. Begin part legal agreements into littler single contracts as opposed to making long contracts.
4. Talent management Talent management is regularly a delicate issue. Organizations allow to recognizable people and groups instead of picking the best person for a specific job. A firm ability and attitude, and additionally being imaginative and receptive, are the heartbeats of every representative or assistant. Besides, many organizations fall into another trap: staff training. To expect self-ruling working from representatives is reasonable and guarantees his or her professional development but remember that there is a fine line between independent working and leaving an employee on their own.
5. Utilize Prefabrications Utilizing prefabricated can expand construction quality while decreasing expenses. When you have a major working, there is a lot of repetitive components that you can prefabricate in a factory and anything that you can prefabricate, unless it must be trucked a massive division.
6. Push toward Shorter, Team-Friendly Contracts when each party tries to give however much legal protection as could be expected, it makes it more difficult for colleagues to draw in easily with each other, improving the probability of blunders and errors that prompt wastefulness. As opposed to expanding your lawful group, current construction transactions would do well to take the lead of Japan and Korea, where shorter contracts require less legitimate intervention and more simple commitment from colleagues. In this situation, issues and preparations are examined completely and pay is settled upon with less legitimate association.
7. Improve Safety Training and Provide more of it Accidents are an essential driver of project delays and cost overwhelms. Contractors need to offer more security preparing to make representatives more mindful of hazards and risks in their condition and also urge them to hold new safety methodologies. Bringing awareness about safety and giving more mindfulness educational programs will help to enhance security while expanding productivity. Contact us for 100% safe and productive construction activities.
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gemengservs · 1 year
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Procurement Strategy and Scheduling under PMC
As a project is moving through the phases of planning recognized in the capital works management process information of the project increases? This is the perfect time to consider the procurement strategy that may be most suitable to convey the required project outputs. The project development stage is likewise an opportunity to identify bundling the opportunities.
Before choosing the procurement strategy for a government building project, it is important to first determine the elements which will determine the most reasonable procurement strategy for the project. These factors are:
• The key objectives and limitations of the project.
• The risks that may emerge during the delivery of the project and how those risks may best be managed with the level of complexity of the task.
The Procurement strategies include:
· Traditional Fully Documented The principals are engaging to specialists to plan the building project and get ready documentation which completely describes the work to be conducted. The contractual worker at that point develops the building project as per the undertaking documentation arranged.
· Design and Construct The Rules connect with consultants to set up a detailed project which characterizes the scope, quality and functionality requirements of the building project. The temporary worker at that point finishes the outline of the project, gets ready development of project documentation, and develops the project.
· Alliance This procurement strategy by GEM Engserv likewise provides early temporary worker inclusion. An alliance is formed between project members, involving the chief and temporary worker. All partners of projects in the organization together are responsible for the delivery of the project. It is most suitable to complex, high risk projects where optional strategies for risk allocation will be insufficient.
· Bundling Bundling is a program management strategy that includes the delivery of various projects (now and again, for a number of departments) under one contract.
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gemengservs · 1 year
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Project Management Consulting Firm in India
GEM Engserv are successful PMC inIndia. We focus on product growth and PMC and we have the breadth of vision to take conversations from the boardroom, and translate them into finished projects. Our own expertise lies in finding financial solutions to give your particular project life and momentum. From strategy planning to increased success, we are on panel. We’re versatile. We have provided full-service project management for your projects. Industries include: transport, energy, facilities, and mobility. This is why we work. We like complex projects and linking the gaps where they look. We can create a virtual network between personal entrepreneurs, innovators and buyers, or ensure you get the right blueprints for your company’s future success.
GEM Engserv PMC in India embraces collaboration. At the heart of our discussions with clients, we take the time to engage their culture and corporate goals. This is how we give you the best advice and organized plans to develop your product and industry. Below we have mentioned a selection of the services we provides for you.
PROJECT DELIVERY: Corporations say they will deliver — GEM Engserv always does. Our professionals create strict timetables, whilst factoring in allowances for the unexpected. This is the way we can guarantee your task will stay on track, keep to budget and deliver on time. Your profit margins and shareholders will thank you for the frank and refreshing approach.
PROJECT PLANNING: All of us abide by the principles of project management, and discussion posts will cover: scope, quality, schedule, budget, resources and risks.
PROJECT MANAGEMENT: All of us will implement an agreed approach that covers strategy and tactics for the design and delivery procedures.
RELATIONSHIP BUILDINGS: GEMEngserv consultants take the time to build high quality working relationships and find the best investors for current and new projects. MARKETING COMMUNICATIONS: Project roadmaps include regular client updates and face to face meetings; making sure project scope is recognized by all parties at every stage.
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gemengservs · 1 year
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In-house quality control vs third-party services!
No matter, whether you are a new manufacturer or an expert one, one thing that is most important for you is the “quality”. The quality of your manufactured products. Quality matters a lot. It decides the future of any company. In terms of meet the best quality, you have to meet some specified standards. And in order to meet those standards you have three main ways.
1. Having a team of quality control (QC) of your own.
2. Hiring a professional third-party.
So, what is your choice? The article will explain both sides, have a look and then decide which one is most suitable for you.
Let’s start with having a team of your own. Here are some factors that you need to consider before planning for it.
Necessary to meet shipping deadlines
This is an important factor, most of the time manufacturers have to face the deadline challenge, and they have to ship the product on time. But before shipping, inspecting the quality of the products is must.
For example, if you are manufacturing 10,000 bulbs that are expected to be finished in two days and then shipped on the 3rd day. In this situation, it might be not possible for third-party to complete the inspection in the given time. That means you may be fail in shipping your manufactured products because of the delay took place.
Thus, in such type of cases, you must go with your own in-house team.
Compare the prices
Perhaps money is your greatest concern for quality control. If you are manufacturing thousands of products on the daily basis and need to inspect. Then I suggest you hire your own team.
In this case, if you go with some external third-party service, I am guaranteed it will cost you more. Because the process is long-term. Day by day, there will be an increase in the number of products that you need to inspect to maintain the quality.
Now, here are some points to keep in mind while opting for third-party service providers.
Eliminates repeating issues
If your buyers are getting products continuously with same issues, then I think it is a time to hire some third-party quality control professional.
The problem with the in-house team is sometimes they used to ignore problems. But independent, third-party inspectors are impartial, unlike in-house staffs.
Saves money
For short-term services, depending on third-party saves your money. You have to spend money only when you need services. Otherwise, you have a hire a whole team of quality controllers which costs you a lot. So, for projects that are for short term, hiring some external professional is beneficial.
In building a business, these quality controllers play a very important role. Quality is one of the most important factors that you need to take as first. For maintaining quality, businesses are investing thousands of dollars on resources and latest instruments. In today’s world, people are ready to compromise with the price but with quality a big no.
So, depend on your need choose the best-suited service for you (I am talking about in-house and third-party). The choice is yours.
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gemengservs · 1 year
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Why Are Quantity Takeoff Services Necessary?
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Money is required in all sorts of planning. We cannot imagine any planning without calculating or estimating the budget behind it. Evaluating labor cost and estimating quantity of materials which are needed for the dream come true plan is an important phase in planning. If the above discussed phase is omitted from the plan, there is a strong possibility that your project may not move after modeling stage. Any intellectual who is pursuing CAD or engineering training does know the importance of quantity take-offs in building works. They are an inevitable ingredient. Quantity take-offs, actually concentrate on determining the feasibility of the project, fulfillment of requirements of client, requirement of revisions and financial assessment of other alternatives.
The role of quantity take-offs is to take care of estimations ranging from accounting number of piping and light fixtures to required time for installation. 
Here are some points which are really help in understanding the advantages of quantity take-off services:
●     Quantity take-off services are prove helpful from starting phase. Drafters can find the services helpful while sketching diagrams as estimations help to make better decisions to control budget. Planning gains attributes like being realistic and cost efficient due to quantity take-off services. 
●      It is great help to site engineers when CAD programs are used to evaluate take-off capabilities. Thus they can spend their time and energy on identifying construction assemblies, assessing risk and saving time. Comparing traditional methods which could take days to perform takeoffs of a big construction, quantity takeoff are really time efficient. Not to mention, the automated process provides error free results.  
●     Entire team consisting of all stakeholders can see information related estimation provided through takeoff software. The project’s estimated cost is dynamically presented in front of the team. Thus, it increases communication between stakeholders.
Hence, Quantity takeoff services have so much to offer in construction program.
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gemengservs · 1 year
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Concrete defects – a ticking time bomb!
This article outlines the importance of corrective and preventive action, aside from immediate repairs addressing concrete defects in construction projects.
Author: Shashank Vaidya - Director
Gone are the days when developers and contractors used to take concrete defects as something that needs to just be patched up or repaired. RERA has legislated that the defect liability period for any construction project will now be for a duration of 5 years from the date of handing over of the flat to the home buyer. Considering the fact that a typical mid or high rise building takes anything from 2 to 4 years to handover after the first pour of concrete, the defect liability of the concrete can actually be anything from 6 years to 9 years. That is sufficient time for even some hidden defects to surface! All serious and professional entities that are in the business for the long-term have taken note of this far reaching provision of RERA and are gearing up to mitigate future costs, claims and damages.
The root cause of defects in concrete, or for that matter in any construction activity can be traced to any one of the following:
Design or detailing errors
Poor quality of materials
Error in construction
Improper handling or (over)loading
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gemengservs · 1 year
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Cost vs Quality – The perpetual conundrum
The cost vs quality tradeoff is a common dilemma faced by many industries, including construction. Here we summarise our understanding based on responses from the industry leaders.
Author: Dhawal Vaidya - VP Commercial
construction industry, cost based decisions, leadership, preventive quality management, Quality Management, tradeoff
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The literature of Quality Management is full of principle of ‘Cost of Quality’. However, few organizations have been able to put in place a cost-effective mechanism to measure and control the cost of quality (both cost of poor quality and cost of good quality). In the absence of hard numbers, leaders and managers are left with only an intuitive understanding about the cost-quality equation. Some are convinced that ‘quality is free’ or that investment in quality more than just pays for itself. Such leaders commit their organizations to invest in quality and reap the rewards. Some others lack a deep-seated belief about the positive effect of quality on cost and end up paying only lip service to the cause of quality.
If only managers and leaders had hard accounting numbers connecting the cost of prevention, appraisals and failures, the behaviour of leaders could be easily moulded in favour of preventive Quality Management. Juran, one of the foremost proponents of Quality Management believed it was important to directly link quality issues with costs. Linking quality, conformance and defects to dollars and profits was the only way to drive true change, thus unifying workers and senior management.
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gemengservs · 1 year
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Quantity Surveying and Estimation for Construction Cost
Quantity surveying and estimation cost of construction need to be at the fingertip of every surveyor. This is necessary as estimated cost of building construction assists them to examine and manipulate data used for projections and comparison. Its main role is to give an estimate of cost and contractual arrangement. With the limited fund, quantity surveyors are adopting the best way to estimate the construction project cost. The accuracy of estimate decides the project of the project.
Many construction companies are there providing the full range of quantity surveying and estimation services for their clients in the context of the building, renovating, extending, refurbishing of the building. Moreover, they provide their services in domains like residential, commercial and retail, and another project type.
The teamwork to deliver best and valuable service on the project also provide the consultation for the requirement of service. Quantity surveying and estimation ensures the cost control from inception to finish and till deliver the project on time. These companies also provide improved cost as compared to the money value of the project.
Why Do People Hire Quality Surveying And Estimation Company?
For planning as per to changing market condition, different client requirement etc. cost estimation and planning is necessary quantity surveying that serves as guidance for the overall project cost. Logically, they complete the word needed to be done in right order and given time duration.
Moreover, cost assessment allows you to know whether the necessary funds are available for the project, after planning an assessment of fund is important. One person manages the allocated fund and he/she needs to be accountable for every single penny. Accountability of each person is required in quantity surveying and estimation. They set priorities after the comparison of quantities and ratio of specific cost account.
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gemengservs · 1 year
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A short discussion on Construction Claims and Disputes
Author: Mohana Raje - Director
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Construction disputes make up a significant component of the claims and disputes dealt with in Arbitrations in India.
The Government is investing into new facilities for improving the infrastructure of the country. At the same time, commercial and real estate projects are on the rise in India. There is a construction boom taking place. All such construction projects require highly specialized designs, detailed plans and specifications, high-risk construction methods, effective project planning and management, skilled supervision, and effective coordination. Construction projects are complex, uncertain, have extended construction periods, involving many parties, requiring Civil, Mechanical and Electrical engineering experts to work in close co-ordination.
These various parties involved in construction contracts deal with complicated challenges and technicalities making it riskier for contractors and clients. Larger and more complex projects involve more parties and more ways the project could go wrong. Also, contractors have to construct progressively sophisticated and risky projects with a reduced number of resources and profits.
Construction contract disputes can start right after a contract is formed and may continue till the end. Therefore, the smooth sailing of a project to begin with depends on a number of factors like exclusive new contract formation, bidding, and compliance to contractual documents during execution.  The best chance to prevent claims comes to an end once tender-documents are finalized and the contract is awarded.
The next phase is the execution of the project without change in the scope of work, ensuring timelines are followed, vendors and contractors and other agencies are appointed on time and there is no deviation from the contractual conditions. Out of the four phases- Pre-tender, Contract Formulation, Construction, Post completion of a construction project, most claims occur during the construction phase.
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gemengservs · 1 year
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How broken is your Plan Do Check Act (PDCA) cycle?
In 1939 Shewhart changed the then existing linear thinking to a cycle to show how refinement and change leads to an iterative approach to product development. Edward Deming, the Quality Guru further developed this concept and presented what was known as Deming’s wheel. Later it became popular as the P-D-C-A cycle which is at the core of all Quality Management systems and ISO:9001. It is now popularly known as the Deming cycle and is extremely important for continual improvement of any management system. In the course of providing various services related to Quality Management in the construction; mostly quality audit services, I have come across organizations that are at different stages of implementing the philosophy enshrined in the P-D-C-A cycle. In my opinion, very few organizations can claim to have fully implemented the P-D-C-A cycle. In other words, the P-D-C-A cycle is broken to different degrees in different organizations. Here, I have tried to identify different degrees of breakage in the P-D-C-A cycle that I have come across.
1. Just Do It (no offense meant to Nike!):
At the lowest rung of maturity of management systems are the organizations that have just the ‘do’ in their system. They neither plan nor check the outcome of their efforts. Most likely, the management has no idea about the P-D-C-A cycle. Obviously, quality audits can not take place in or for such organizations because audits represent the check part, which simply does not exist. To draw a parallel with the theory of adult learning, such organizations are at the stage of unconscious incompetence (I don’t know what I don’t know)
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gemengservs · 1 year
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Welded Wire Mesh
Ranjit Patil, HOD - Design Engineering and BBS
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Traditionally, RCC construction projects manage reinforcement (rebar) work at the site by setting up a yard for storage, cut & bend in this yard and locally shift reinforcement for installation. Recently, the use of factory cut & bend reinforcement has also been used considering the increased need for speed, quality coupled with lack of space at sites. In both cases, however, the installation effort needed remains the same.
To overcome this constraint, the technique of using Welded Wire Mesh (WWM) is gaining acceptance slowly but steadily. Though the use of Welded wire mesh is not very popular in INDIA, it is widely adopted in developed countries like the USA, CANADA, UK and the Middle East region. The popularity of Welded wire wesh in these countries is mainly due to the shortage of site workers and critical timelines of projects.
Welded Wire Mesh is a need of the hour in developing countries like India. Projects in Metropolitan cities must adopt this technique owing to space constraints in setting up of cutting, bending and storage yards at site and speed up the installation process. Provisions exist in the Indian Standards that support the use of Welded Wire Mesh through advice regarding their design and detailing.
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gemengservs · 1 year
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Accuracy in Quantity Surveying
Pranita Kale, HOD - QS & Cost Consultancy
Quite often, in the course of finalization of an assignment, clients ask us, “What is the accuracy with which you will provide quantities”. Though not articulated expressly, we understand that the client expects 100% accuracy in Quantity estimation! Obviously, no Quantity Estimator can truthfully claim to provide 100 % accuracy in her deliverable. Our stock answer to this question is “the accuracy will be in proportion to the quality of the drawings & details provided to us”. This answer does not satisfy those who consider them perfectionists. In one particular case, the client wanted to impose a penalty based on the % error in the quantity estimate, agreeing to pay 100% fees only if the quantities were 100% accurate. Needless to say, we had two choices, either to factor a few % of lost fees in our quote or to opt-out of the bid! We don’t know how the client was to get hold of 100% accurate quantities to assess the final amount payable to us!
Is it really worthwhile to demand 100% accuracy in Quantities?
Before we explore whether quantities can be provided with 100% accuracy, let us examine if this expectation is justified? Quantities are used for any one of the following purposes;
To prepare the project budget/cost plan
For finalizing contract price
For the purpose of bidding
For the procurement of materials
In the first three cases, the final requirement is cost and not quantity per-se. For any given quantities, the cost may vary widely, depending upon the rates adopted for costing. Rates vary widely and depend on many factors. In competitive bidding, all other factors remaining the same, amount/rates are known to vary by as much as 30-50%.
Similarly, estimation of the quantity of materials depends on factors such as technical specifications, wastage, rolling margin, concrete mix proportions, design changes etc. These factors may cause a variation ranging from 5% to 20%.
If factors other than the quantities cause such a large variation, there is really no justification in demanding an unreasonably high level of accuracy in Quantity estimation. I am reminded of a very witty statement “there is no point in using a Vernier to measure the dimension if you are going to use chalk to mark the piece of wood and use an axe to chop it to the required size”. How apt!!!
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gemengservs · 1 year
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Do I really need Quality Audits?
Swapnil Gandhi
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I recently had an interesting conversation with the project manager of a company that we had approached for conducting a quality audit. It seems one of his peers from another organization had recommended him to get in touch with us for this purpose. However, he was not very convinced about it and ended up quizzing me in detail about the necessity of a Quality Audit. It makes for interesting reading since some of the points from that conversation actually showed me why what I do is so critical for construction projects.
I am leaving out the pleasantries from this write-up for the purpose of being succinct (for reference, PM is the Project Manager and SG is Swapnil Gandhi).
PM: I heard about your quality audit at one of my friends’ site. He seemed impressed with it and recommended that I explore the need for one at my project as well.
SG: Most certainly sir. That is very encouraging to know. I would say that quality audits should be part of every project’s quarterly, if not monthly routine.
PM: Yes, but there is a difference between his project site and mine. You may have found quality issues at his project, but I run a very tight ship and it is unlikely that there are any gaps in quality control at my project site.
SG: With due respect sir, how are you so sure that there are no deviations from your quality plan at your project site? Do you periodically conduct quality audits?
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gemengservs · 1 year
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The Spectrum of Project Management Consultancy Services
Shashank Vaidya - Director
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Outsourcing is the practice of hiring a party outside a company to create products and perform services that traditionally were performed in-house by the company’s own employees and staff. The decision to give certain functions to an outside service provider should be taken after careful consideration. Once tasks have been outsourced, reintegrating them back into a company can be anything but easy. Organizations should always first check that the benefits outweigh the disadvantages for your company before opting for outsourcing. Outsourcing has been prevalent do different degrees in different geographies and businesses. As economies grow, greater efficiencies are obtained by outsourcing tasks to specialists. However, for the outsourcing to deliver the expected benefits to all stakeholders and the society, the business ecosystem must be mature. In the infrastructure and real estate sectors in India, a wide spectrum of PMC services exists. At one extreme are organizations that do everything in-house and at the other extreme some organizations only manage a plethora of service providers and integrate all these services while delivering their product. Project management consultants are external, outsourced agencies responsible for delivering projects on time within the resources and budget allocated. A project management consultant brings in specialized knowledge and skills that empower businesses to make informed decisions throughout the lifecycle of a project, from the planning stage to completion. Organizations that outsource Project Management also adopt different models. We at GEM Engserv have been associated with many of these business models for outsourcing the PMC services. The variations primarily relate to the functions that are outsourced, the nature of project teams, and the responsibilities devolved on the external service providers. Based on our experience, the following models exist. The entire spectrum of the PMC services is discussed along with the pros and cons of each model and what it takes to succeed with a given model. These models present increasing accountability of and authority with internal resources/teams.
Full-fledged PMC
CMC, masquerading as PMC
Hybrid CMC
Fragmented outsourcing
Temping
Full-fledged PMC
On one end of the spectrum is the model where the entire management of the project from the pre-construction phase till completion/handover is outsourced to a specialist agency.
The PMC is the first service provider on board, immediately after the ‘GO’ decision is taken by the owner. Appointment of all other service providers, contractors and taking care of all activities from planning & design to commissioning is the responsibility of the PMC. This model is not much prevalent in India as owners need a big ‘leap of faith’ in outsourcing he entire project management function to an external agency. It requires a very mature management team with owners and highly responsive, expert, and proficient PMC to succeed.
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gemengservs · 1 year
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Cost of quality and challenges in construction
Shashank Vaidya - Director
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Many concepts related to Quality Management have originated in the manufacturing industry and their implementation is being attempted in the construction industry. Manufacturing industry is characterized by steady‐state processes whereas the construction industry operates quite differently. Some examples of these differences are given below:
Diversity in the types, forms, and shapes of construction projects
Geographical dispersion
Contractual relationships
Multiplicity and diversity of various components
Challenges in controlling environmental conditions
Difficulty (sometimes impossibility) of rejecting a defective element
Much higher ‘durability’ requirement
Therefore, methods or principles used to evaluate quality-related parameters like assessment, cost, etc. in the manufacturing industry need to be modified suitably, so that they may be applied effectively in the construction industry. The objective in a construction project is to meet the client requirements at the lowest possible cost. Any attempt to improve the quality, therefore, must consider the associated costs. It is here that the concept of ‘Cost of Quality’ (COQ) becomes relevant. Juran believed that it was important to link Quality issues with cost. Linking Quality efforts to conformance, defects and costs (and profits) is the only way to drive sustainable change in the management’s approach towards Quality. 
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gemengservs · 1 year
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FAQs on Value Engineering (Part 2)
Most of us understand very well, the value created by Value Engineering. Why then is it utilized so ineffectively by so many?
Author: Shashank Vaidya - Director
benefits of value engineering, Construction, cost reduction with value engineering, value engineering
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Continuing the discussion regarding value engineering from Part 1, we now look at a few more aspects about Value Engineering. This includes a roadmap to foster innovation, internally encourage the practice and possible reasons why project proponents sometimes miss the bus in implementing this on their projects.
Q1: Do we really innovate in Construction?
Ans: The answer is a definite yes! The number of innovation or the pace with which these hit the industry may be slower than what we observe in some other industries. However, innovation does take place in construction. Concrete, RCC and PSC are all innovations and within RCC and PSC, there have been a series of smaller innovations. One can easily list more than a few hundreds of innovative products and solutions that have been adapted by the construction industry.
Q2: How can one go about quantifying Value Engineering – what should be the baseline?
Ans: Quantification of Value Engineering requires a baseline of functionality and cost to be in place at the time of starting Value Engineering. The baseline functionality is usually documented in the project brief or design basis reports. The cost baseline is documented in the last approved budget. It is essential that the budget contains sufficient details to pin point the cost of existing solution.
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