---
title: The Value of Value Engineering
description: Value engineering often means improved functionality of a development project combined with increased savings and value over the life of the building.
image: https://blog.simoncre.com/hubfs/Blog%20Files/Blog%20-%20Stock%20Photos/Value-Engineering.jpg
---
- [Properties](https://simoncre.com/properties/#!/main)
- About Us
- [Our Company](https://simoncre.com/about-us/)
- [Our Team](https://simoncre.com/our-team/)
- [Our Culture](https://simoncre.com/our-culture/)
- [Careers](https://simoncre.com/careers/)
- Approach
- [Development](https://simoncre.com/development/)
- [Acquisitions](https://simoncre.com/acquisitions/)
- [Dispositions](https://simoncre.com/dispositions/)
- Resources
- [Insights](https://blog.simoncre.com/insights)
- [News](https://blog.simoncre.com/news)
- [Case Studies](https://blog.simoncre.com/case-studies)
- [Contact](https://simoncre.com/contact-us/)
- [Properties](https://simoncre.com/properties/#!/main)
- About Us
- [Our Company](https://simoncre.com/about-us/)
- [Our Team](https://simoncre.com/our-team/)
- [Our Culture](https://simoncre.com/our-culture/)
- [Careers](https://simoncre.com/careers/)
- Approach
- [Development](https://simoncre.com/development/)
- [Acquisitions](https://simoncre.com/acquisitions/)
- [Dispositions](https://simoncre.com/dispositions/)
- Resources
- [Insights](https://blog.simoncre.com/insights)
- [News](https://blog.simoncre.com/news)
- [Case Studies](https://blog.simoncre.com/case-studies)
- [Contact](https://simoncre.com/contact-us/)
SUBSCRIBE
- [](https://www.facebook.com/SimonCommercialRealEstate)
- [](https://twitter.com/simon_cre)
- [](https://www.linkedin.com/company/simoncre)
- [](https://instagram.com/simon.cre)
# Insights
 News & views of the industry we love
[](https://blog.simoncre.com/insights/the-value-of-value-engineering#down)
[ back to resources](https://blog.simoncre.com/insights)
This is a search field with an auto-suggest feature attached.
- There are no suggestions because the search field is empty.
CATEGORIES
- [- Buyers](https://blog.simoncre.com/insights/topic/buyer)
- [- Tenants](https://blog.simoncre.com/insights/topic/tenants)
- [- Brokers](https://blog.simoncre.com/insights/topic/broker)
- [- Sellers](https://blog.simoncre.com/insights/topic/seller)
# The Value of Value Engineering
January 22, 2019 [](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.simoncre.com%2Finsights%2Fthe-value-of-value-engineering%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.simoncre.com%2Finsights%2Fthe-value-of-value-engineering%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.simoncre.com%2Finsights%2Fthe-value-of-value-engineering%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.simoncre.com%2Finsights%2Fthe-value-of-value-engineering%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=The%20Value%20of%20Value%20Engineering)
What is value engineering? In short, value engineering is a process by which alternate means, methods, and materials are investigated and compared against initial construction costs. With a [build to suit development](https://info.simoncre.com/understanding-build-to-suit-development), it’s also important to note that impact on future costs as well.
This element of the [commercial real estate development process](https://info.simoncre.com/the-commercial-real-estate-development-process) is used to solve problems and identify and eliminate unwanted costs. But this method is not simply about cost-cutting. True value engineering is about giving careful consideration to all options, always with the project's goals in mind while improving function and quality.
### How can value engineering be implemented?
Value engineering is a method that can be implemented at any point within a commercial real estate development project. Although, applying the process early on in the project stages can help avoid more significant risk.
Within the three main stages of [the development process](https://info.simoncre.com/the-commercial-real-estate-development-process), value engineering can be broken as follows:
- **The planning stage:** the developer and contractors should agree on an anticipated cost of the project.
- **The design stage:** the design team and the client should come together to review the proposed design solutions, the cost estimate, and the proposed schedule and approach.
- **The construction stage:** the architect/engineer team should be brought in to the decision-making process to agree on proposed changes and confirm no negative impact on the overall design and building function.
### Why use value engineering?
Specifically, if we look at build to suit properties, where rents are based on build-out costs, value engineering allows [experienced developers](https://info.simoncre.com/why-use-a-preferred-developer) to realize better value for money in design, contracting, and final build out. And the process is meant to not only benefit the initial construction phase but to provide long-term value.
Upfront construction costs account for [only 11% of the total lifecycle costs of a building](http://www.ccr-mag.com/building-value-engineering-into-renovation-projects/). That number highlights the fact that early decisions have a critical impact on the long-term cost of ownership.
The benefit of a great value engineering process to the owner and tenant will be a better, more cost-efficient project that meets all of the needs and objectives. Value engineering isn’t meant to diminish the project’s vision or sacrifice project material and quality, functionality, performance, and reliability. On the contrary, the process can actually improve aspects by identifying innovative options and new approaches.
For architects, engineers, and contractors, value engineering can mean reductions in redesigns and a more efficient construction process.
Overall, value engineering can help provide:
- **Better work scope**
- **Decrease costs**
- **Decrease waste**
- **Expand consensus**
- **Help keep costs within set budgeting**
---
The use of value engineering often means improved functionality of a project combined with increased savings and value over the life of the building. The right development partner can help leverage relationships in order to implement value engineering, [ensure quality construction](https://blog.simoncre.com/insights/using-special-inspections-to-ensure-quality-construction), and finish with a successful project on time and under budget.
[Commercial Real Estate Development Process](https://blog.simoncre.com/insights/topic/commercial-real-estate-development-process) [Engineering](https://blog.simoncre.com/insights/topic/engineering) [Construction](https://blog.simoncre.com/insights/topic/construction) [Tenant](https://blog.simoncre.com/insights/topic/tenant)
### Related Posts
Check out our latest news & views to help keep you informed
April 16, 2024
[The Factors that Determine the Rent Rate of a..](https://blog.simoncre.com/insights/the-factors-that-determine-the-rent-rate-of-a-property) [read more](https://blog.simoncre.com/insights/the-factors-that-determine-the-rent-rate-of-a-property)
March 19, 2024
[Working With Your Landlord to Achieve Expanded..](https://blog.simoncre.com/insights/working-with-your-landlord-to-achieve-expanded-tenant-improvement-allowances) [read more](https://blog.simoncre.com/insights/working-with-your-landlord-to-achieve-expanded-tenant-improvement-allowances)
March 5, 2024
[6 Common Allowances for Tenant Improvements](https://blog.simoncre.com/insights/6-common-allowances-for-tenant-improvements) [read more](https://blog.simoncre.com/insights/6-common-allowances-for-tenant-improvements)
August 29, 2023
[What We Look for in General Contractors: Part..](https://blog.simoncre.com/insights/what-we-look-for-in-general-contractors-part-ii) [read more](https://blog.simoncre.com/insights/what-we-look-for-in-general-contractors-part-ii)
May 2, 2023
[Why Fixed CAM Costs are the New Fix to an Old..](https://blog.simoncre.com/insights/why-fixed-cam-costs-are-the-new-fix-to-an-old-problem) [read more](https://blog.simoncre.com/insights/why-fixed-cam-costs-are-the-new-fix-to-an-old-problem)
KEYWORD
- There are no suggestions because the search field is empty.
TENANCY
- [- Buyers](https://blog.simoncre.com/insights/topic/buyer)
- [- Tenants](https://blog.simoncre.com/insights/topic/tenant)
- [- Brokers](https://blog.simoncre.com/insights/topic/broker)
- [- Sellers](https://blog.simoncre.com/insights/topic/seller)
- [- Fans](https://blog.simoncre.com/insights/topic/fan)
TYPE
- [- Article](https://blog.simoncre.com/insights/topic/article)
- [- Download](https://blog.simoncre.com/insights/topic/download)
- [- Video](https://blog.simoncre.com/insights/topic/video)
### BLOG & PROPERTY SIGNUP
Get exclusive content and property updates sent straight to your inbox
Stay up to date with exclusive content, the latest news, and our property updates delivered to your inbox
- ADDRESS 6900 E. 2nd Street
Scottsdale, AZ 85251
- phone
[480-745-1965](tel:4807451965)
[](https://www.facebook.com/SimonCommercialRealEstate) [](https://twitter.com/simon_cre) [](https://www.linkedin.com/company/simoncre) [](https://www.youtube.com/channel/UCBONc-W0e61QtbfGsW_duPw)
© 2020 SimonCRE. All Right Reserved | [Privacy Policy](https://simoncre.com/privacy-policy/)
- [properties](https://simoncre.com/properties/#!/main)
- [About Us](https://simoncre.com/about-us/)
- [development](https://simoncre.com/development/)
- [acquisitions](https://simoncre.com/acquisitions/)
- [Tenants](https://simoncre.com/tenants/)
- [Brokers](https://simoncre.com/brokers/)
- [Buyers](https://simoncre.com/buyers/)
- [Sellers](https://simoncre.com/sellers/)
- [Fans](https://simoncre.com/fans/)
- guide
- [Understanding Build To Suit Development](https://info.simoncre.com/understanding-build-to-suit-development)
- [The Commercial Real Estate Development Process](https://info.simoncre.com/the-commercial-real-estate-development-process)
- [Build to Suit FAQ](https://info.simoncre.com/build-to-suit-development-faq)
- [Why Use a Preferred Developer?](https://info.simoncre.com/why-use-a-preferred-developer)
- [What to Know About Commercial Redevelopment](https://info.simoncre.com/what-to-know-about-commercial-redevelopment)