In basic terminology, value engineering is a contractors effort to provide cost savings, possibly time saving, to a project by suggesting alternate (BUT equal) methods, building materials, and/or schedule procedures, while maintaining the original design intent.
           
More formally, value engineering, by definition, is a systematic and organized procedural decision-making process. The concept originated at General Electric in the 1940s. VE Helps people creatively generate alternatives to secure essential functions at the greatest worth as opposed to costs. The concept of value engineering has been successfully applied to the general construction process for decades.
           
At Surge Solutions Group, our value engineering team, with diverse backgrounds, is assembled and the five phases of VE- investigation, speculation, evaluation, development, and presentation- are used to guide the team through the process. Value engineering formulates the solutions into recommendations are then implemented into the construction design.
           
The VE purpose is to ensure that only concepts that have the highest potential for values are ultimately presented and used. Surge Solutions Group utilizes this process to guarantee that our clients receive the most cost-effective, functional and quality-controlled construction project.
           
Every step of the process is geared toward obtaining a result that increases the ROI (return on investment) or value, for our clients.

It depends on the governmental jurisdiction (location) of the project, the detail of information submitted by the consultants (Engineer, Architect, etc.), and revisions (if any) required. It can take anywhere from 5-weeks to multiple months.

The personnel dedicated to your project are expert within their respective divisions. From estimating through project management; from our Interior Services Division, (tenant improvement/build-out) to our Ground-up Commercial Division, to our  Special Services Division, we focus on the specific needs of your project. Further, we provide extremely thorough client-development and preconstruction services, guiding you through every necessary step to deliver your uniquely required construction service.

1. Plan Evaluation- SSG will work with the architect to coordinate the systems and methods being proposed by the architect. SSG will use its own expertise and experience, as well as the expertise of its subcontractors to recommend the systems and methods used to meet the overall requirements of the Owner for initial cost and life expectancy. This plan evaluation includes analyses of structural, mechanical, electrical, and architectural components.
2. Site Evaluation- SSG will work with the engineer to coordinate the site development plans to ensure the most economical methods, materials, and system are used for site preparation, utilities, and landscaping for the project. This evaluation includes an analysis to determine if the project can be started sooner by the proper coordination of site development and vertical buildings.
3. Preliminary Budgets- SSG will supply the Owner with budget numbers, based upon conceptual estimates, using square footage and/or unit costs. These prices are determined by the previous experience of SSG and our working relationship with reputable subcontractors. Preliminary estimates are usually accurate to /- 10% after conceptual plans are complete and allow the Owner to make intelligent decisions on how to proceed and the level of quality they can expect from the budgeted price with the design drawings.
4. Preliminary Schedules- SSG will work with the architects, engineers, proposed subcontractors, and will use its own experience to create preliminary schedules for the entire project. These schedules would include the time involved in preparing working drawings, necessary approvals, and the actual construction process. The purpose of the preliminary schedule is for the Owner to be aware of the time it takes from inception of the project at final completion and occupancy.
5. General Conditions- SSG will submit a cost breakout of on-site general conditions. The general conditions are billed as a direct job-expense. These costs include: on-site supervision, temporary facilities, communications, equipment rentals, and miscellaneous costs associated with on-site management.
6. Final Budgets- SSG shall submit to the Owner a final budget in which it is willing to contract for a fixed contract amount. These budgets will include prices on individual line items and will include prices from three to five qualified subcontractors, when available.
7. Final Schedules- SSG will furnish the Owner with a set of construction schedules; these schedules will define all of the activities necessary for the building of the project and the sequence in which they will occur. The schedule will typically be a bar chart for ease of readability and can be converted into a critical path time-line, if the Owner or lender so designates. This is the schedule, which details all of the activities from start to finish.
8. Subcontractor Evaluation and Recommendations- SSG will submit to the Owners recommendations of the three lowest bid and qualified subcontractors on each budget line item. Although it is the intention of SSG to use the lowest prices subcontractor, we will research and identify whether the subcontractors have financial, manpower, or quality problems and would be unable to complete the project in a timely manner. If this is the case, SSG may recommend going to the next lowest subcontractor.

These, as well as some other services, are some of the Preconstruction Services provided by SSG. Upon successful completion of the Preconstruction Phase, your project is formidably on its way to a successful Construction Phase, as well.

A design-build procurement method provides single-source responsibility to a client with all the benefits of proven design, engineering, and construction experience. It ensures a cost-effective structure to meet the design and quality requirements of any construction project and also facilitates budget control by shortening the project schedule. Design-build project delivery requires careful planning and professional execution to be useful- SSG is an experienced, successful design-build contractor.

 

A negotiated construction project occurs when an Owner selects a contractor prior to completion of the working drawings. The contractor, architect and owner, work together as a team to create a set of permit-able drawings. The contractor’s fee is typically established in advance of the contractor and owner finalizing the contract. The general contractor then solicits complete estimates with back-ups, including the subcontractor bids combined with costs-of-work (general conditions) provided directly by the general contractor. The contractor then adds the agreed-upon fee and the total of all these costs become the contract amount.

Competitive bidding occurs when an owner contracts with an architect to produce a full-set of working (permit-able) drawings and then solicits two or more general contractors to provide bids. The general contractors review the plans and submit a lump-sum proposal to build the project in accordance to the plans and specification provided by the architect.

Conceptual drawings are preliminary in nature and generally provide the basic floor plan, site plan and elevations for the proposed project. These drawings are used to determine the look of the project, how it fits on the proposed building sit, and also used to create preliminary construction budget.

Working drawings are complete enough to permit and build the project. These documents generally consist of architectural, structural, mechanical, electrical, and civil engineering (site development) plans.

General conditions are hard-cost expenses common to most construction projects. They occur at the jobsite and are expenses, typically, of the general contractor. These costs include items such as project management, site supervision, trailer (temporary office), temporary utilities, waste receptacles and removal, site IT requirements, communications, etc. General conditions are considered a cost-of the-job and are not part of the contractor’s fee.

Contractor’s fee consists of “overhead” type items such as, contractor’s main office, telephones, utility expenses, computers, staff employed at the main office, project accounting, salary of company officers/owners, etc. and contractor’s profit.

You can register by referring to the “Subcontractor” page on our website. Either download the Subcontractor Qualification Form and return to SSG, or fill-out the form online and submit via the instructions. Once we determine you meet the requirements, SSG will forward bid opportunities to your company. SSG subcontractor performance is rated by our project managers and after project completion. That information is continually shared with both the estimating department and the project management department.