As a stakeholder in a construction project, you know that the barriers to a successful build are many and varied. From the earliest stages, the pressure to be on time and on budget mount and can easily escalate as unseen forces pull your timeline and budget in a myriad of directions. The constant strain begins to feel like a fault line that is ready to slip at any moment.
One of your earliest challenges is finding the right partner to guide the construction process. This step in the process is critical to not only the success of your project, but also your peace of mind. The relationship between owner, general contractor, and all the moving parts therein should ensure a smooth flow as opposed to a constant fight for alignment.
So, how do you know when sorting through RFP responses where to place your trust? We suggest starting with a two-way discussion around Value Engineering (VE). This is often a bright line in the separation between a project that eventually ends, and a project that you look back on with positive regard. It can also be the start to a rewarding, long-term relationship with a collaborative general contracting partner who truly cares about your vision and goals at every stage.
At Koester General Contracting, our purpose is simple: Achieve Success by Helping Others. For us, this means that each project we take on, and each partnership we develop, is rooted in delivering exceptional service. To achieve this, we start with Value Engineering.
We know the process, the market, and how to get the most out of your construction investment. Costs continue to rise driven by increasing labor shortages, ongoing supply chain issues, and ever-growing demand. 2026 industry forecasts predict a rise in construction costs of 2-6%. That is on top of prices that never truly recovered from COVID era spikes. Given this volatility, the relationship between savvy owner and trusted general contractor provides clarity and drives positive outcomes.
The Koester Value Engineering Process
The common definition of Value Engineering in construction is:
A systematic process to maximize project value by analyzing functions and resources to find the most cost-effective solutions without sacrificing quality, safety, or performance, often involving a team to explore alternative materials, designs, or methods to optimize the function-to-cost ratio, leading to improved efficiency, reduced waste, and better return on investment.
The Koester definition is a little easier to follow:
Applying our 40-years of experience and industry knowledge to uncover hidden value, maximize efficiency, and ensure a successful and enjoyable construction process for our valued customers, subcontractors, and partners.
At Koester, Value Engineering is more than just a cost-cutting exercise. For us, it's about achieving a better result for you. That often shows up in the form of cost savings, efficiencies gained, and stress reduced.
The sooner we can dig into your project, the more value we can find on your behalf. Our preconstruction process is predicated on setting your project up to maximize efficiency, eliminate waste, and ensure that all phases are optimized. We don’t take shortcuts with your dollar. Our people are hired and trained with these principles as foundational elements. Our subs are selected and vetted on their ability to work with us to build value in each step of the process.
Value Engineering often uncovers the most hidden ROI in the planning and preconstruction phase. This is true because early Value Engineering bridges the gap between plans and execution. Even the best laid plans are subject to the realities on the ground of the construction process. But that doesn’t mean that VE is a set it and forget it proposition. Change management during a project is inevitable. It is also a good opportunity to look for unforeseen and unexpected value during the construction phase.
While there is no wrong time to employ Value Engineering strategies, the earlier in the process value is uncovered, the less reliant you are on changes late. Finding efficiencies and savings in preconstruction drives value and enables construction to proceed without major disruptions in search of short cuts to accelerate timelines or prop up budgets late.
Value can be found if you know where to look and how to execute. Material substitutions (equal or better alternatives), system optimization, method improvements, schedule efficiencies, phasing adjustments, funding, budgeting, and accounting efficiencies are all on the table and available for value mining if the partnership between general contractor and stakeholder is strong.
If you trust your GC to collaborate with architects and engineers, to leverage market knowledge and field experience, and manage risk, the value gained will show up in the quality of your finished project as well as on your bottom line.
We invite you to start a conversation with our team and learn more about Koester General Contracting. Contact us to see how we apply 40 years of know-how to deliver outstanding customer experiences.