High demand and limited supply of materials and labour has led to some 40% increase in construction costs in Singapore. Industry players have responded by trying to cut costs down the line. Indiscriminate cost cutting could result in a ‘cheapened’ product/service and impact subsequent operating and maintenance costs.

Value Engineering & Management (VEM) is a structured approach to assess a project/ system/product/service with the aim of seeking cost savings without compromising functionality, performance and reliability. In the process it attempts to:

• Remove unnecessary cost with no loss in function
• Provide the required function at the lowest life-cycle cost

VE was first introduced in the 50′s and was rapidly adopted due to its effectiveness. The US Public Building Service introduced mandatory VE requirements in the design stage of Traditional Contracts in 1968 and wrote it in as a service requirement in construction management contracts in 1972.

The benefits of VEM are not well appreciated in Singapore possibly due to a lack of knowledge. As construction costs continue to rise, VE will have to be a norm rather than an option in the pursuit of providing a product/service at the lowest possible cost without compromising performance requirements.