In the current economic climate its vital that we ensure that our capital is spent wisely to maximise value and minimise cost incurred. PMCC provide services to ensure you address these issues to deliver your projects within tighter financial constraints:
With Value Engineering PMCC will provided detailed analysis of the function of a design and / or product as compared to cost in order to
- increase the functionality – maintaining cost, or
- retain the functionality – however reducing cost.
This is achieved by selection of a more cost effective design or selection of more cost effective materials to satisfy the function required. PMCC can carryout the value engineering of a project at early design stage, during tendering or during construction. The most ideal time to carryout this exercise however is early in a project to avoid abortive design, procurement or works onsite. PMCC have carried out many value engineering exercises for clients across SEA and have in some specific examples saved up to 5% of construction budget or maximisation of function without any additional cost.
Examples of recent Value Engineering
Increase in the functionality of the building capacity of a new office facility by 25% at no additional cost through revision of use in certain areas of the building to meet the functional requirement and re-selection of materials within the office to fund this revision.
Enhancement of the air-conditioning system and increase in the functional areas for income generation of the client by reconsideration of room sizing, and selection of more cost effective materials that are performing the same function.
Cost Saving Audit
Similar to Value Engineering however our audit process will recommend pure cost savings on design elements and materials used in order to ensure economical construction costs.
We will first analyse the construction cost forecast by percentage basis in order to identify what elements are above normal proportions, we will then provide a detailed analysis of why these costs are proportionately high. From this review we can assess and recommend review items for the design team in order to ensure that the design is suitable, required and necessary.
We shall also review material specifications and suppliers proposed and consider if we believe there are alternative products available that would provide a saving for the client.
Examples of recent Cost Saving Exercises
This project is carried out multiple times across SEA in a very similar format with specific product guidelines from head office. By analysing the costs against other similar projects it was clear that the materials and specifications were proportionately expensive and also in some cases did not provide true functional benefit to the client. From this audit process a saving of 15% was achieved to the construction cost.
We carried out the Cost Saving Audit at tender stage and identified key items that could be downgraded from the original client requirements in order to still provide a functional fit for purpose facility however sliming down on design elements and materials which did not provide adequate function. This process resulted in a saving of 10% of the construction cost.
Let’s ensure your construction activities continue in a cost effective way to enable your projects to be delivered. Contact us for an independent view at your project.