Michael Brisbois Associates


COMMERCIAL CONSTRUCTION VALUE ENGINEERING
Metro Denver, Colorado, Front Range and Mountain Resort Towns

A key component of commercial construction project management is Construction Value Engineering -- sometimes called cost engineering -- which is a collaborative process orchestrated by MBA with the full involvement and cooperation of the Development Team.  Using the preferred delivery method of a Cost Plus a Fee with a Guaranteed Maximum Price contract, the Owner gains the advantage of open book reviews of all of the contractor’s costs.

The Value Engineering Process in Colorado Commercial Construction Project Management

The process of construction value engineering usually begins with the preparation of a Cost Analysis Report, also called a Trend Log.  This document summarizes the pluses and minuses within the hard cost portion of the budget as the project is being designed and estimates are being prepared.  At each milestone within the commercial construction design process (Conceptual, Schematic, Design Development, Construction Documents) a summary Cost Analysis Report is prepared for review by the Owner.  This report includes the baseline budget amount compared to the current estimate.  Accepted changes, or value engineering options, are added and the resulting total is the adjusted base cost estimate. 

Format

For all Denver, Colorado and Front Range construction value engineering projects it undertakes, MBA delivers a Cost Analysis Report in a spreadsheet format that indicates the date and description of the VE (Value Engineering) item, its additive or deductive cost and whether it has been accepted or rejected.  The running total provides the updated hard cost budget estimate; and any changes to the Cost Analysis Report will immediately be reflected in the adjusted base hard cost estimate.  It should be noted that soft costs are always controlled directly by the Owner and, as such, do not require input from others.  Soft costs are not typically addressed when construction value engineering is employed using these tools, as soft costs may be adjusted by the Owner without consulting with the Development Team.

Value Engineering – Colorado Review Process

MBA recognizes that, to be a valid cost analysis technique, construction value engineering must be much more than simply cutting the project scope.  Anyone can reduce a hard cost budget by eliminating a floor or a building wing.  True value engineering must entail a systematic and methodical review of all major building systems and, whenever appropriate, a comparison of alternative systems costs.  Cost variables between different building systems can be significant when material costs and fabrication, shipping and installation times are analyzed.  With this approach, MBA has managed to save Owners and Developers substantial amounts of money on scores of commercial construction projects throughout Denver, Colorado, the Western U.S. and throughout the country.  However, changes in major building systems, such as structural, mechanical and electrical systems can have significant impacts, both in terms of cost and performance, on other parts of the building, such as exterior walls, windows and roofs.  This must be taken into consideration and balanced against cost savings benefits.

Effective construction cost and value engineering involves equal parts of art and science in order to achieve the desired effect on the budget without negatively impacting the Owner’s program requirements or the performance of the building. 

“I recently told a local architect that MBA was the best money we spent on this project.
He corrected me and said, "No it's the best money you saved on your project.”
Alice Applebaum, Anchor Center for Blind Children – Denver, Colorado

Colorado Commercial Construction Value Engineering Projects

MBA has a track record of successfully developing dozens of commercial building programs that have met or exceeded the cost and performance expectations of our clients.  Some examples of our Front Range, metro Denver and Colorado commercial construction value engineering and construction management projects include:

For more information about the Commercial Construction Value Engineering, and commercial construction project management services that Michael Brisbois Associates provides for clients throughout metro Denver, along the Front Range, in Colorado mountain resort towns and throughout the state of Colorado, please contact us at 303-220-9930 or email us at:info@michaelbrisbois.com.

 


6181 South Forest Court • Centennial, Colorado 80121 • Office 303-220-9930 • Fax 303-220-9947

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