5. How can D&B firms successfully manage cost cutting and value engineering?

“You need to insist on doing a proper comparison right at the start,” says a D&B firm head. “We can value engineer on a lot of aspects, but we have to be adamant not to compromise on the finish, as it is the essence of the design.”

Designers in D&B have Plan A, B and even C at times. When working with tight deadlines, they know their next steps should a certain material specified earlier is not available. “We have better knowledge of how a project is built, unlike designers from a design only firm.” This coming from a designer who has worked in both D&B and traditional design firms. “Good designers know how to do good design – great designers know how to execute as well.”

 

“We can value engineer on a lot of aspects, but we have to be adamant not to compromise on the finish, as it is the essence of the design.”

 

The conversation about cost should start right at the sales point. The entire group is in agreement that releasing the budget at the start of the project will result in the optimum result for that price. Unfortunately, as we learn, this is not a norm but an exception. “Most clients do not want to reveal their budget, and then start cost cutting towards the end, mainly in the furnishing and finishes domain, which results in a poor looking project where the design takes a massive hit,” mentions a design lead.

Another misconception about Design & Build firms is that clients assume that the ‘design’ part of the project is for free – as in it’s an add-on to the rest of the tangible services, such as construction, joinery, materials, furniture, etc. And this massively downplays the importance of design, with clients demanding free design before a project is even acquired. “This type of thinking needs to change immediately!”


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