Video: Looking to the Future: Embracing Total Cost of Ownership & Avoiding Unintended Consequences of Value Engineering
This presentation will discuss value engineering concepts and reality, TCO approach and examples of both successful integration of TCO to the project decisions and the unintended consequences of value engineering without a look to the future.
Learning Objectives:
- Understand the impact of an owner requiring a value engineering or value management (VE) process.
- Understand the total cost of ownership (TCO) concept/approach.
- Understand the commissioning/energy consultant’s role in looking beyond first costs and considering long term impacts of project decisions.
- Be able to integrate value engineering concepts into commissioning/energy services.
Video courtesy: CxEnergy
Presenters:
- Robert Bucey, PE, CEM, BCxP, Jacobs Engineering
- Chris Smith, PE, CxA, EMP, Jacobs Engineering
Often on projects, an owner will require a value engineering or value management (VE) process. This process is often, focused on driving down first costs and can determine whether a project will move forward on its current path or need to be reduced to get within an owner’s budget. The VE activities on a project are also an opportunity for the independent, third-party commissioning & energy consultant to reinforce the primacy of the owner’s project.
The approach for the commissioning and energy consultant should include engaging the team while utilizing the concept of total cost of ownership (TCO), which is an emphasis to look beyond first costs to the future operations and long-term impacts of project decisions. Utilizing TCO as a baseline for considering VE alternatives as part of a comprehensive approach to project decisions can help owners and the project team avoid unintended consequences when considering first cost and schedule impacts only.
This presentation will discuss value engineering concepts and reality, TCO approach and examples of both successful integration of TCO to the project decisions and the unintended consequences of value engineering without a look to the future.
CxEnergy is the premier conference & expo in commissioning, building technology, and energy management. CSE subscribers receive a 10% discount to the CxEnergy 2023 with promo code CSE10 (May 2-5, Dallas/Ft. Worth, TX). Learn more and register.
CxEnergy is presented by the AABC Commissioning Group (ACG), the Energy Management Association (EMA), and the Associated Air Balance Council (AABC). Together, these Authorities in Building Performance represent over 600 member companies and 2,500 certified professionals in the testing, adjusting, and balancing, commissioning, and energy management industries.
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