WHAT IS VALUE MANAGEMENT &
HOW IT BENEFITS YOUR PROJECT
The smarter way to prevent price shock, eliminate design blowouts, and
deliver your project faster through early builder
INTRODUCTION
In today’s building industry, rising costs, unpredictable materials, and dreams of a perfect home often clash with budget realities, leading to price shock and delays. Value Management (VM) offers a proactive solution to these challenges by involving the builder early in the design process—before final plans and budgets are set.
WHAT IS VALUE MANAGEMENT?
Value Management is a process where the builder is involved during the design phase
of a project—long before final plans and budgets are determined. By working with the
client and architect from the very beginning, the builder helps to ensure:
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Realistic budgets from day one
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Designs that align with cost expectations
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No surprises when final tenders are submitted
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A smoother project delivery process for everyone
The result? You get a project that meets your expectations and budget, with fewer delays and no surprise costs.
THE BENEFITS OF EARLY BUILDER INVOLVEMENT
Bringing your builder into the project early offers numerous advantages, including:
THE 3 STEPS TO THE VALUE MANAGEMENT PROCESS
Value Management isn’t just about reducing costs—it’s about making informed decisions early, ensuring smart design choices, and maintaining control of the project from start to finish.
1
Initial Concept & Needs Analysis
Before committing to the project, your builder reviews the concept design to determine whether the project is viable within the desired budget. A quick building estimate will help assess whether the budget aligns with the proposed design.
2
Collaborative Refinement & Design Review
If the project is viable, this stage focuses on refining the design. The builder works closely with the architect to ensure the design is practical, cost-effective, and meets your expectations. The focus is on structural elements, site challenges, and cost-effective materials. Finishes and other minor details are left for later in the process.
3
Final Tender & Pre-Construction Finalization
Once the design is refined, the final tender is prepared. This includes all selections, costs, and construction details, ensuring everything is agreed upon before construction begins. This step is crucial to avoid delays or cost overruns during construction.
HOW VALUE MANAGEMENT CAN SAVE YOU MONEY & TIME
Value Management ensures that your design and budget are aligned from the start by involving the builder early. This proactive approach helps avoid unexpected costs and delays caused by designs that exceed the budget or are difficult to build.
By identifying potential issues early—such as site constraints or complex design elements—the builder can solve problems before they become costly changes later. This also leads to a more efficient timeline, as the project avoids unnecessary delays from design revisions or misaligned expectations.
The builder works with the architect to optimize the design, selecting materials and construction methods that stay within budget and are practical to build. This not only keeps costs down but also accelerates the planning process, ensuring the project progresses smoothly.
Early builder involvement allows for better resource management, securing materials and scheduling labor efficiently. This reduces delays caused by shortages or scheduling conflicts, leading to a faster project completion.
Ultimately, Value Management ensures that the project stays on budget and on schedule, saving you both time and money without compromising quality.
EXAMPLE OF PRICE SHOCK PREVENTION
Imagine planning for a $2 million home, but after the design is finalised, the builder presents a quote of $3 million due to overlooked costs or inaccurate estimating. Now, you face a tough decision: either scale back your dream design (incurring costly redesign fees) or abandon the project entirely due to budget blowouts.
By involving the builder early through Value Management, these issues are identified up front. Early collaboration ensures cost-effective solutions are integrated into the design, preventing price shock and helping keep the project within budget and on track.
Our Pre Construction Process
We ensures every project begins with financial clarity and precision. It’s designed to confirm the client’s budget aligns with the true cost of construction, avoiding wasted time, unnecessary delays, or financial misalignment later in the build.
1
Budget Qualification
We begin with a Rapid Pro Estimate to validate the client’s budget. This step determines whether the proposed funds are realistic for the intended scope of work, ensuring that both the builder and the home owner have a clear financial framework before any design or documentation progresses.
2
Elemental Estimation
Once the budget is confirmed, we prepare an Elemental Estimate. This provides an extended construction cost breakdown, outlining all major components, materials, and allowances. The elemental estimate forms the foundation for trade and supplier engagement, helping builders present a transparent cost structure to their clients.
3
Trade & Supplier Confirmation
After receiving the Elemental Estimate, builders proceed to confirm quotations with trades and suppliers. This stage validates real-world costs, including materials, labour, and subcontractor pricing. Once all quotations are received and reviewed, the builder can finalise the total construction cost with confidence.
WHY THIS WORKS
This approach positions you, the homeowner, to be fully involved in the decision-making process, ensuring that your vision aligns with what’s practically achievable within your budget.
With early builder involvement, you can:
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Avoid budget blowouts
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Eliminate’s price shock
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Protect your investment by ensuring realistic designs
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Build a strong relationship with your builder based on trust and collaboration
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Value Management allows you to be in control of the process, ensuring that your project runs smoothly and meets your expectations without unexpected costs or delays.