Practice Management Member Conversations

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I have recently encountered requests for a "certified value engineer".  Is the AIA offering certification?  If not, are we abdicating this roll to others?  Any advice on how I can become "certified"?

My personal blog on the issue: Based on over 30 years of battling the misconception that late term cost cutting, when suggested by a contractor, is true value engineering (the later in the process, the better); perhaps one of my peers could print something out for me?

Oh, and can we call it "Value Architecting", so this doesn't simply default to engineers?

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Robin Miller AIA
Miller Sellers Heroux Architects
Sioux Falls SD
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Of course, Value Engineering is neither "value" nor "engineering" as is commonly practiced.  Instead, it is the removal of value in the quest to find the lowest cost alternative to meet a minimal construction cost goal (typically with little regard for the long-term benefits), done with an isolated, non-engineered focus that rarely is able to be properly integrated into the overall design to understand its true impacts.  A more rigorous program or process that allows for the proper practice of value engineering and could provide some general education to the market would be a good thing.  But how many clients, who undertake VE in the quest to remove cost, will be willing to pay the additional "soft costs" that would be required to do this properly?

"Value Engineering" is one of those oxymoronic terms that in reality means your carefully crafted plans and coordination are about to be busted apart so the contractor can credit the client 75 cents of every dollar he saves.  I don't know of any certification for VE - it's mostly done by the GC and subs after the drawings are complete.  The real danger is that they prepare a list of VE items that can gut important parts of the design or specification criteria, and you only later find that it's gone.  I have a great story about low E glass on that issue.

My own preferred method of dealing with VE is to have it done at the end of the DD phase if that is at all possible.  This works best when you have a contractor on board early in the process, advising on cost and constructability issues in the design phase.  If you can do the VE in the DD phase, you end up with CD's that have the VE drawn and coordinated into the set, which provides much better quality control than trying to splice and modify at a later date.  Plus, it's done before the subs complete their bidding/pricing, providing the client with a true savings rather than a partial.

If you don't have a GC on board in the design phase, options would include having one of the potential bidders do the VE work for a fee, which can later be rolled into the overall construction contract later as part of pre-construction services.  Another option is to have an Architect perform a peer review of the project and offer suggestions.

Either way, the earlier the VE work can be done the smaller the impact will be on the timeliness, completeness, and quality of your documents.

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Klaus Steinke AIA
Las Vegas NV
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R. Sandquist, AIA
Vice President
Sandquist Construction Inc
Lincoln NE
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As a commercial GC, I must generally agree with Klaus Steinke's asertion that Value Engineering is most effective when the contractor is on board by the DD phase - the sooner the better.  Of course this typically requires that the Contractor be selected more on a qualifications based selection process than a competitive bid / bottom dollar selection - the basic difference in these two project delivery methods.  When I'm asked, I always like to respond, "No one else was willing to do the work as cheaply as the low bidder - are they providing less?"  And look out for the low bidder's change orders.  There is a reason why even the public sector is often moving from competitive bidding.  Remeber, traditional bankers want 3 competitve bids while construction attorneys recommend using the most appropriate contractor for the project; there is a big difference.

When selecting a GC based upon qualifications, it is critical that the owner and architect collectively review the record of prospective GCs.  References are equally critical, because the success of getting the right GC not only depends upon their construction expertise, but upon their honesty and integrity as well.  And church-goers do not automatically translate into having integrity!  Subcontractors can tell you who you can trust.  A GC's respect for the intentions of the owner and architect are also highly critical for success in the pre-construction phase.  We try to offer the most cost effective means to achieve the designer's intentions - that is our version of VE.

I can also attest to the reality in our locale, that some design firms are far more qualified than others with respect to designing on budget.  Some owners have a fixed budget AND program requirements that simply do not mesh.  They need to know this right away - seems obvious, right?  But I am amazed how many design firms simply cross their fingers and hope for the best at bid time.  Yet, many others are contrastingly accurate.  We obtain many jobs where all the competitve bids are over budget.  Then we go after the Owner to VE.  Unfortunately, this is not the best time to cut costs.  So get an honest, well qualified GC on board early to eliminate headaches on bid day!


Original Message:
Sent: 12-08-2010 20:50
From: Klaus Steinke
Subject: Certified Value Engineer

"Value Engineering" is one of those oxymoronic terms that in reality means your carefully crafted plans and coordination are about to be busted apart so the contractor can credit the client 75 cents of every dollar he saves.  I don't know of any certification for VE - it's mostly done by the GC and subs after the drawings are complete.  The real danger is that they prepare a list of VE items that can gut important parts of the design or specification criteria, and you only later find that it's gone.  I have a great story about low E glass on that issue.

My own preferred method of dealing with VE is to have it done at the end of the DD phase if that is at all possible.  This works best when you have a contractor on board early in the process, advising on cost and constructability issues in the design phase.  If you can do the VE in the DD phase, you end up with CD's that have the VE drawn and coordinated into the set, which provides much better quality control than trying to splice and modify at a later date.  Plus, it's done before the subs complete their bidding/pricing, providing the client with a true savings rather than a partial.

If you don't have a GC on board in the design phase, options would include having one of the potential bidders do the VE work for a fee, which can later be rolled into the overall construction contract later as part of pre-construction services.  Another option is to have an Architect perform a peer review of the project and offer suggestions.

Either way, the earlier the VE work can be done the smaller the impact will be on the timeliness, completeness, and quality of your documents.

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Klaus Steinke AIA
Las Vegas NV
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Here we go: