The definition of value engineering
“Value engineering (VE) is a systematic method to improve the “value” of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be manipulated by either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements. The term “value management” is sometimes used as a synonym for “value engineering”, and both promote the planning and delivery of projects with improved performance”. (Wikipedia)
Modern building construction and maintenance
The building, construction and maintenance trades are a cascading hierarchy of skills and responsibilities. Typically, a primary contractor, or dedicated department in larger organisations, will oversee the construction or maintenance of a building and specialist trades are invited into the team as subcontractors. Fire and smoke damper testing engineers are a good example of specialist tradespeople.
The use of a tendering process to find and instruct second-tier contractors is a well-understood and efficient system.
The tendering process requires all candidate subcontractors to supply the same, standardised information to enable the instructor to easily compare the competencies and fees of various contractors.
The impact of value engineering on the tendering process
Most contracts for fire safety and compliance work require contractors to submit tender documentation. The aim is to fairly assess the available contractors and choose the best-value solution, but the process is, in my opinion, fundamentally flawed.
If we examine the definition of value engineering we see that value and the preservation of basic function is the aim; however, in our experience, price is placed ahead of value. The structure of most tender documentation illustrates the point.
Typically, half of the required information in a damper testing tender concentrates on skills, experience, expertise, accreditations, etc. The remainder of the tender is focused on price. I would argue that while being competitive on price should always be part of the equation, it should not be the dominant driver.
Here’s why.
The very essence of what we do is deliver safety and compliance. Corners cannot be cut to achieve a competitive price just to win work.
We know from the work we win through the tendering process that not all tenders are won solely on price – but we do see the results of when I believe this has been the case, and it is unacceptably common.
The impact of a price-driven process
I am disappointed by the numerous reports from my team of substandard workmanship, either in the installation or previous testing of fire and smoke dampers. In fact, my team frequently find in relatively new buildings dampers that are totally inaccessible, demonstrating the regard for standards is woefully lacking.
I believe a large driver in this is the emphasis on price in the tendering process.
If the balance was switched to true value – where a fair and competitive price is paid for experience and expertise – the result would be higher standards and greater safety.
The worst example we’ve seen
Reading the reports as they emerge from the Grenfell tragedy is gut-wrenching. The most basic standards were simply never met. Price was clearly a significant driver.
From non-compliant fire doors to substandard cladding and more, the list of faults, errors and omissions shows a focus on profit and total disregard for safety.
This is not value engineering and a substantial shift in attention is needed.
In conclusion
We need to continue our efforts regarding clearer documentation of standards and best practice, such as VH001, which was updated earlier this year. We need to communicate these standards to everyone involved in building maintenance, including those in procurement roles.
A contractor’s ability to perform to standards and prove they have done so is essential. In the case of fire and smoke dampers, clearer reporting, including photographic evidence, must be provided by installers and testing engineers to give the responsible person peace of mind that their dampers are compliant.
We must dedicate equal or more importance to the experience and expertise of all contractors during the tender process to achieve and maintain higher standards of safety.
I’d love to hear your thoughts. Please, connect with me on LinkedIn to join in the conversation.
