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| FORMAL ESTIMATES AND VALUE ENGINEERING FORMAL ESTIMATES As part of our control function, we will prepare and deliver formal estimates at agreed-upon points in the design phase. This can be, for example, Schematic Design Estimate, 100% Design Development, 60% Construction Documents, and 100% Construction Documents. The timing of these estimates is developed on the basis of what the design team needs. The end result of the preconstruction phase estimating will be a cost package that does not have to be redesigned to an acceptable budget level at the end of design � after subcontractor bids have been received. The project will stay on budget during the entire preconstruction phase and will proceed smoothly to construction. VALUE ENGINEERING There are two differing interpretations of what value engineering means, and both are generally valid and have their place. One is to save as much money as possible in the items that are not seen by the public (i.e., the foundation system), while not short-changing life cycle maintenance and design aesthetics issues. MBI supports this approach fully. The other interpretation of value engineering is to substitute less expensive materials so as to reach larger project goals that cannot be achieved without cutting costs somewhere. Our approach is to bring procedural discipline to the budget process. This way value analysis is an integral part of the budget process � through all phases of preconstruction � and not an imposition after the design has exceeded the available budget. Our primary focus is to help the design team identify and control cost overages to prevent �reactive� value engineering. MBI will attend regular meetings with the design team during conceptual and preliminary design (or later in design depending on when we are contracted), to advise on site use and improvements, foundation and structural issues, selection of feasibility, availability of labor and materials, time requirements for various phases of construction, and factors related to costs, including costs of alternate designs or materials. |
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