Value Engineering Information
Value engineering (VE) evaluates every component of a construction project to determine whether: a less expensive material can achieve the same performance (substituting pre-engineered steel for structural steel), a different design approach can reduce costs (reducing the number of corners or angles in the building footprint), a system can be simplified (reducing the number of HVAC zones or electrical panels), and construction methods can be optimized (prefabrication vs. site-built, or phased construction). VE is typically conducted during: the design phase (when changes are least expensive to implement), the bid phase (when contractor proposals may suggest cost-saving alternatives), and the construction phase (when field conditions create opportunities for cost reduction). VE must balance: cost reduction against quality, durability, maintenance, and aesthetic requirements.
Florida Legal Definition
Value engineering in Florida construction projects is governed by: the construction contract (which specifies who initiates VE, how savings are shared, and the approval process), the Florida Building Code (§553.73, which establishes minimum standards that VE alternatives must meet), and for public projects, §287.055 (the Consultants' Competitive Negotiation Act, which may include VE requirements). Under the Florida Building Code, all VE alternatives must comply with: structural requirements, wind resistance standards (particularly important for Florida's hurricane exposure), fire safety requirements, energy efficiency standards, and accessibility requirements. For public construction projects, §287.055(9) encourages VE for projects over $2 million.
How It's Used in Practice
In practice, attorneys incorporate VE provisions in construction contracts. The attorney: drafts VE clauses specifying the process for proposing and approving alternatives, the sharing of savings (common structures include: 100% to the owner, 50/50 split between owner and contractor, or 100% to the contractor as an incentive), and the approval requirements (any VE change must be approved by the architect, the owner, and the building official if code-related). The attorney ensures: VE alternatives comply with the Florida Building Code (particularly wind resistance requirements), the quality and performance standards are maintained, the change is properly documented through a change order, and the warranty coverage extends to the VE alternative. Common VE strategies in Florida include: substituting concrete masonry for poured-in-place concrete, using pre-engineered metal buildings for industrial and warehouse projects, and optimizing the HVAC design for Florida's climate.
Key Takeaways
- Value engineering: reduce costs while maintaining quality and performance.
- Must comply with Florida Building Code, especially wind resistance.
- Savings sharing: 100% owner, 50/50 split, or contractor incentive.
- Best implemented during design phase when changes are least costly.
- All changes documented through formal change orders.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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