What's it Worth?
A
method of analysis that became popular in the 1980’s, value engineering is a
tool used to save money. The principle is to find ways to complete a
project for less money while retaining its desired “value.” Every element in
the building is assigned a relative value. Those items deemed of great value
are retained; those deemed of lesser value are modified or eliminated. Seems to
be a good idea - - helps keep priorities in order - - keeps client and design
team on the same page - - and purports to increase value while decreasing costs
- - but does it?
In
the 1966 movie Gambit, Michael
Caine’s character has a plan to pull off a major robbery and needs Shirley
McCaine’s character as a gambit and window dressing for his plan to succeed. The
opening of the movie shows the plan as a dream sequence where everything goes
exactly according to plan. The film then shows us the plan’s actual execution
where, of course, everything goes wrong.
I believe this is what happens with performing arts facilities. It’s not that the process is flawed, but that it is often applied at inappropriate
times with unrealistic expectations.
Cost Containment
Although
the cost of a design should be monitored at each design phase, it often happens
that bids come in significantly over budget. This can be the result of poor
budget accounting during design, wishful thinking on the part of the client and
design team, an unforeseen jump in labor or material costs or a malfunctioning
crystal ball. Whatever the reason, there is almost never additional funding
available and so the design team must find ways to reduce the cost of the
facility.
The
knight-in-shining-armor most often called upon is value engineering. The only problem is that everyone has their
own idea of what is valuable to a theater. Substituting gypsum board for plaster
will not likely be a problem for anyone. Re-design of the architect’s cherished
lobby window wall, will be a disappointment, but after the theater is built, no
one will ever know. Deleting 25% of the stage lighting circuits and 50% of the
counterweight rigging sets can seriously handicap the theater over the course
of its entire existence. It may seem far-fetched, but it is
often the theatrical systems, essential to the function of the facility, that
are asked to suffer significant cuts.
Who is the Decider?
The
client/owner is the ultimate arbiter of the value engineering process; although
the work of creating value engineering choices is delegated to the architect.
Sometimes the client elects to bring in an outside party to oversee the
process. The rationale is that the architect and
design team may be too emotionally invested and another firm will be able to
review the project with clear eyes. It also implies that all the parties
selected to create the facility (architect, design team, facility manager and
owner) have failed in some regard and/or are not professional enough.
In
my experience, this reasoning is flawed. Usually a construction management firm
is engaged and charged with reducing the cost of the facility to the monies
available . . . period. Despite the best of intentions, they can have no
understanding of the history of the project, consensus that has been built or
the relationships, professional and social, which have
accrued. They are often granted carte blanche and the architect and design team
are expected to accede a year or more’s work to a relative stranger with
minimal time allotted and, most often, no additional fee. You may imagine the
unpleasant climate this creates.
Caveat Emptor
Aside
from licking old wounds, I hope this advice will help make
performing arts facilities the best they can be for the monies available. Keep track of project costs at
all times during the design process. A
cost consultant can be a very valuable member of your team in this regard. If
the project is over-budget at any point in the design, it should be addressed
then. The earlier a budget problem is identified the easier it will be to
remedy and the less it will cost. As the design proceeds through construction
documentation, budget problems become increasing difficult to remedy and will
increase in cost. If you attempt to implement value engineering after bids come in, you will end up with less building for the money. To paraphrase Yoda, the Jedi master, “Be
afraid . . . be very afraid!”
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