CurrentSituation There is an increase in diverse methods for early appointment of contractors. There is a growing trend of early contractor appointments to ascertain costs and schedules quickly and ensure project feasibility. Simplification of the order process and operational efficiency are increasingly sought to reduce the burden on clients. Challenges The VFM evaluation order method’s specific design documentation, including specifications and estimate terms Rationalization through contractor VE (Value Engineering) proposals, followed by permit applications, Proposal We maximize VFM by creating design documentation and detailed construction cost breakdowns and controlling fluctuations in quality and cost. Design documentation for the VFM evaluation ordering method clarify VFM is maximized by clarifying quality and cost variations due to contractor VE proposals and design changes. and maintain strict adherence to the project budget. Collaborative reviews of schedule and cost variations are conducted with the contractor’s temporary work, process, and cost managers. Nikken Sekkei’s stringent management ensures adherence to the project budget. The construction market has shifted to a seller’s market due to a sharp increase in construction demand, disrupting the supply-demand balance. Construction costs remain high due to selective order acceptance by construction contractors, leading to a lack of competitive pricing. Efforts to align projects with budget constraints through value engineering (VE), cost reduction, design modifications, and price negotiations prolong and delay project starts.The strategy for ordering construction work significantly impacts the schedule, quality, and construction cost. We ensure strict adherence to the project schedule by selecting contractors early and eliminating the risk of construction start delays. We manage variations in construction costs due to price changes during the design phase [Design Development-2] and design alterations We increase construction flexibility and incentives for receiving orders through the adoption of contractor VE and technical proposals. Costs are reduced and construction flexibility expanded, through contractor VE and unique technical proposals. We improve incentives for receiving orders and establish a fair competitive environment.[Disadvantages of Schematic Design Order] Lower precision in design specifications and cost leads to increased schedule, quality, and cost variability. Verifying the accuracy of quantity and unit price becomes challenging, diminishing VFM.(Estimations at the stage of incomplete design documentation often result in lump-sum entries and lack of detailed estimates.) Inaccuracies in design documents and estimates can hinder contract agreements, compromising the project’s feasibility. Construction prices tend to increase after a contractor is appointed due to the absence of competition. Contractors may request additional compensation to cover the cost of material price increases.and conditions, enhances VFM and enables the early selection of contractors.ensures that the project cost and schedule are maintained.the contractor's basis for cost estimation (itemized statement).Why Choose Nikken Sekkei’s VFM (Value for Money) Evaluation Order MethodNikken Sekkei’s VFM Evaluation Order Method ExplainedValue for Money is defined as obtaining services that offer greater value compared to their cost.
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