Hotel development critical processes: value design, value engineering, value life cycle, what do they mean?
Value-added design is a process through the stages of the use of space program.
A project’s viability can be truly reflected after profound but minor economies. In the ‘Art of the Deal’ developer Donald Trump cited using three hinges on each ball room door, instead of four, thereby saving 25% of installation and material costs.
The process, although based around common sense, requires an experienced development team, who can justify the use of all space as it relates to the unique market concept of the hotel.
Firstly they need to answer the questions, ‘is the space essential?’ and ‘how best do we use it?’
Value engineering involves the architects, engineers, manufacturers presenting a cost-benefit-analysis of the maintenance, reliability, durability of all major materials, systems and equipment being considered. Obvious aspects are hot water systems, elevators, air conditioning, communications, floor finishes, and kitchen equipment; this process also involves a life-cycle cost analysis estimating energy replacement and maintenance costs. The developer is then educated in the selection process. This takes time and perseverance, but the long-term viability of the hotel is often defined at this stage. Operating profits for years to come are defined, and a project manager experienced in the hotel field is an invaluable asset to this process.
Building safety codes, systems for exit due to smoke and fire, and fire resistance of construction elements, from doors in 3 hours walls, roofs, windows, to kitchen hoods, all need to be taken into consideration.
Obviously, cost management needs an effective and efficient system of control. Work scheduling, material and labour, technical aspects, quality standard control measures, all need to be monitored in detail so that any budget overruns can be managed well in advance.
It is in the planning stage that the major costs are reduced, the stage where the hoteliers, architects, interior designers, suppliers, lighting and acoustic consultants, etc., create value-design, which is then supported by value-engineering.