Design Economics for the Built Environment: Impact of Sustainability on Project Evaluation

Chapter 23Case Study: Value Engineering of a New Office Development with Retail Provision

Paul Ullmer

23.1 Introduction

A brief description of the project situation is provided followed by a discussion of the rationale for value engineering (VE), when, where and how VE was applied in the design and construction process. The key tools used for VE such as issue analysis, function analysis, brainstorming and workshops to explore ideas and to identify unnecessary costs or cost savings identified are also discussed with examples of specific VE opportunities. The chapter concludes with some reflection on the benefits of VE.

23.2 Why value management?

The central London office scheme consists of the demolition of an existing office tower and podium structure, to be replaced by the construction of a 15-storey new build office including retail provision (gross internal area, GIA: 42,601 m²; net internal area, NIA: 30,673 m²) using a Design and Build procurement route.

Due to the current economic climate at the time, it was important that the client agreed a let with a tenant as soon as possible. In order to do this, the client wanted to create a significant commercial office development to maximise the lettable area and its commercial viability whilst delivering a development that significantly adds to the quality of the environment.

A cost plan figure of £114 million (£2,676/m²) was submitted at stage D to the client which was benchmarked against similar schemes and considered acceptable. ...