Value Engineering is a strategic, team-based approach that helps you get the most out of your custom home construction project.
more than just cutting costs
At Lloyd Construction, the cornerstone of our work is our Proven Process, which is built from 50 years of construction experience. We distilled decades of knowledge into a clear repeatable system for building high-end custom homes. Each step of The Lloyd Way provides clarity for our clients, team members, design and trade partners and results in a product that we can all be proud of. One of the steps we take early in our Proven Process is Value Engineering.
Collaboration
Following our initial affinity meetings, we enter the Collaboration phase of work, where Value Engineering begins. While it’s often misunderstood as simply a way to cut costs, true Value Engineering is about aligning design and build choices with your project goals, vision, and values. When done correctly, Value Engineering identifies smart alternatives that improve quality, solve problems, and reduce costs, while keeping in mind what matters most to you. It starts with your builder getting a thorough understanding of your vision and goals for the project and what your personal values are.
Visualizing our Values
Imagine this; a retired couple relocates to Ketchum to enjoy mountain living and spend time fly fishing, hiking and skiing. With two adult children and several grandkids they want to build a home that can accommodate guests. Based off their interests and their goals for the home, Value Engineering might emphasize durable, functional material selections that support their active multigenerational lifestyle. A highly functional living space, practical mudroom and plenty of storage would take priority. While on the other hand, they could reduce costs on less impactful finish selections, such as window treatments and hardware selections.
Timing of Value Engineering
During the Collaboration phase significant time is spent to ensure a clear understanding of client priorities before construction begins. This timing allows us to identify the best quality options at the most competitive prices. While the best time to take on Value Engineering is early in the home building process, before groundbreaking or construction has started, we know the reality is, priorities can change. Value Engineering can be applied later, after the project is underway, though there is a chance that changes will affect project timelines.
Methodology
1. Information Gathering
This occurs during our Collaboration phase, we work closely with you and your design team to understand your goals, priorities, and personal values. This creates alignment and lays the groundwork for thoughtful Value Engineering.
2. Functional Analysis
What does this project need to do?
We take a close look at the different elements of your project and measure them against your goals and priorities. We look both at the primary functions; parts that are vital to building your dream home, as well as secondary functions; anything that is notable but not critical.
3. Exploration & Innovation
This is where the magic happens, we take all the information we have gathered in previous steps and look for all viable alternatives. At this point, nothing is off the table. The focus is on big ticket items that offer the most opportunity for Value Engineering, but we are also looking at secondary items and opportunities we find there.
4. Evaluation
We review all solutions to understand if the alternative increases or decreases value for the project. The whole team: the builder, client and design team will discuss the holistic effects of different solutions.
5. Cost Analysis
Working with industry experts, we compare upfront costs vs. lifecycle costs, factoring in impacts on budget, quality, function, and schedule. The goal is optimal value, not just lowest cost.
6. Development
Finally, we present the best-fit options, outlining pros and cons clearly so you can make informed decisions.
Final Thoughts
Value Engineering is a strategic, team-based approach that helps you get the most out of your custom home project. It’s not about cutting corners, it’s about aligning every choice with your priorities to maximize long-term value.
That’s why it’s a vital part of our Proven Process at Lloyd Construction.
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