Forget the “Old Model”
Value Engineering has reached a point where there’s very little actual “value” left. Companies, especially production builders and many contractors, seek the lowest cost of acquisition, or lowest purchase price, for products that get the job done.
The problem with this model is that it costs more money in the long run for the owners and operators of the properties that fall victim to this long-standing tradition.
The three-bid system is fine if you only have to stand by the product for a year or two (like most builder warranties when the keys are handed over), but when you need to hit an operational budget of 7-10 years before improvements can be made again, it’s a problem.
The Three Bid System is Dead
Our Total Cost of Ownership model shifts the dynamic of procurement for capital improvements, maintenance and renovations into a ROI-focused standard.
We evaluate specs, standards and products to deliver the best balance between cost of acquisition, useful product life, cost of operation, maintenance and repairs. This, in turn, delivers the highest overall value to your organization and keeps your budget on-track.