How do you negotiate value engineering solutions?

1 Define the scope and criteria

The first step in negotiating value engineering solutions is to clearly define the scope and criteria of the project. What are the goals, requirements, and constraints of the owner? What are the design specifications, standards, and codes that must be followed? What are the key performance indicators, such as schedule, budget, quality, safety, and sustainability? By establishing a common understanding of the project scope and criteria, you can avoid ambiguity, confusion, and conflict during the VE process.

2 Engage the stakeholders early and often

The second step in negotiating value engineering solutions is to engage the stakeholders early and often. Stakeholders are the people who have an interest or influence in the project, such as the owner, the contractor, the design team, the end-users, the regulators, and the suppliers. By involving them in the VE process, you can gain their input, feedback, and buy-in for the proposed solutions. You can also identify and address their concerns, expectations, and preferences. By engaging the stakeholders early and often, you can build trust, rapport, and consensus among the project team.

5 Negotiate and finalize agreements

The fifth step in negotiating value engineering solutions is to negotiate and finalize agreements. Agreements are the formal or informal contracts that bind the parties to implement the recommended solutions. You should negotiate and finalize agreements in a respectful, cooperative, and win-win manner. You should focus on the interests, needs, and values of each party, rather than their positions, demands, or opinions. You should also seek to create value for all parties, rather than to claim value for yourself. You should use various techniques and skills to negotiate and finalize agreements, such as active listening, effective communication, creative problem-solving, mutual concession, and conflict resolution.

6 Implement and monitor results

The sixth and final step in negotiating value engineering solutions is to implement and monitor results. Results are the outcomes and impacts of the implemented solutions on the project performance and value. You should implement and monitor results in a timely, accurate, and consistent manner. You should follow the agreed-upon plans, procedures, and standards for implementing and monitoring results. You should also measure, document, and report the results using appropriate indicators, methods, and tools. You should also evaluate, review, and improve the results based on feedback, lessons learned, and best practices.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?