Understanding the Difference Between Value Engineering and Alternative Tender Bids
Cost is a major factor when planning a construction project and clients are looking to explore ways to optimise costs and improve efficiency whist ensuring the quality of the end result. Two key approaches offered by SWJ Consulting are value engineering and alternative tender bids. While both methods focus on improving project efficiency and reducing costs, they serve distinct purposes and are utilised at different stages of the construction process. At SWJ Consulting, we have extensive experience with both value engineering and alternative tender bids to help clients get the best possible outcome, and cost efficiency, for their projects.
What is Value Engineering?
Value engineering is a systematic approach that aims to optimise the design and materials used in a project without compromising functionality, safety, or quality. This method is typically applied during the design phase or early stages of a project to ensure cost-effectiveness and efficiency.
At SWJ Consulting, our value engineering process involves:
- Assessing Design Alternatives: Identifying cost-effective solutions that maintain or enhance performance.
- Material and Method Optimisation: Exploring alternative materials and construction methods to reduce costs and environmental impact.
- Lifecycle Cost Analysis: Ensuring that savings in initial costs do not lead to increased long-term maintenance expenses.
For example, the default construction method, particularly for residential medium-rise developments is traditional construction, bricks, and mortar because it is considered a more robust option, over timber or lightweight steel frame.
However, adopting a concrete frame with a lightweight steel frame inner leaf removes a large amount of dead weight from the building, simplifies masonry panels (e.g. no windposts) and savings in foundations. Some clients may just demand bricks and blocks because it is what they know when there is a lighter alternative to heavy masonry which can make savings on foundations, materials and time.
A lightweight inner leaf is fast to install making buildings watertight more quickly than bricks and mortar, thus leading to program benefits. Although masonry is more robust it takes more time to construct and progress is weather-dependent, freezing temperatures and heavy rain can hamper or postpone a masonry lift.
It depends on the project, but lightweight inner leaf is an example of how value engineering from SWJ Consulting may provide a suitable, cost effective alternative that will save clients time and money.
By working with SWJ Consulting for value engineering, clients benefit from expert insights that can help streamline project execution and reducing unnecessary expenditures.
What is an Alternative Tender Bid?
An alternative tender bid, on the other hand, is a competitive approach taken during the procurement phase of a construction project. This process involves submitting an alternative proposal to the one originally tendered, often challenging existing designs and methodologies to achieve better efficiency and cost savings.
At SWJ Consulting, we offer alternative tender bids by:
- Reviewing Existing Plans: Identifying potential oversights or inefficiencies in the original tender.
- Proposing Alternative Solutions: Recommending design modifications, structural changes, or logistical improvements.
- Utilising Advanced Technology: Using virtual design and engineering tools to present optimized project models.
Unlike value engineering, which is integrated during the design stage, alternative tender bids provide an opportunity to refine and enhance the project before construction begins, ensuring the best possible outcomes for cost, timeline, and buildability.
We have worked on alternative tender bids with clients and saved them significant costs as well as disruption to the site. In one case we proposed a solution that allowed a staff car park to remain open during construction, where previously it would have been closed, and reduced the scale of an excavation which minimised the number of vehicle movements needed, an environmental benefit as well as cost and time.
Key Differences Between Value Engineering and Alternative Tender Bids
| Aspect | Value Engineering | Alternative Tender Bids |
| Stage of Application | Early design phase | Procurement and tendering stage |
| Focus | Optimising design and materials | Challenging existing tender proposals |
| Goal | Reducing costs without sacrificing functionality | Enhancing efficiency, cost, and feasibility |
| Approach | Collaborative with designers and engineers | Competitive review of existing plans |
| Result | More cost-effective and practical designs | Alternative project execution plans for better outcomes |
Choosing the Right Approach with SWJ Consulting
At SWJ Consulting, we have extensive experience in both value engineering and alternative tender bids, ensuring that our clients maximise their investment and achieve optimal construction outcomes.
Whether you’re looking to refine your project during the design phase or challenge an existing tender bid for better efficiency, then get in touch with SWJ Consulting on 01993 225085 (Oxford) or 02381 920656 (Southampton) or email mail@swjconsulting.co.uk.