Value engineering: A collaborative method to increase return on real estate assets

Abstract

For every facility there are certain minimum performance requirements that must be achieved, or it will not satisfy the owner's requirements. There is also a maximum cost ceiling that must not be exceeded or the facility will not be affordable. This paper introduces value engineering and suggests that corporate real estate managers should employ the function-oriented systematic team method to create a range of acceptable solutions that fall within the limits. It covers the fundamentals, goals and operation of the methodology. It also explains why value engineering should be mandated as a formal operating procedure to improve both financial performance and marketability of projects, products, services, buildings, systems and properties. Value engineering is a powerful team method to define facility requirements, eliminate unnecessary costs and enhance value in the management of facility assets.