The Application Of Value Engineering In Real Estate Projects

The application of Value Engineering (VE) in real estate industry, not only can optimize the program to lower costs, save social resources, but also can explore ways to improve the value-added services of product and create more value for customers on the basis of thorough analysis on product functions. The promotion and application of VE could also make China's real estate products more user-friendly and promote the implementation of Green Building in the real estate industry. Consequently, the development of China's real estate industry could be furthered.Based on personally experienced cases, the author describes the application of VE at all stages in real estate in this paper, especially the stage of product planning as well as construction. At the planning stage, product function and investment are determined to meet customers'demand, according to the functional definition and value analysis of real estate product based on survey and analysis on consumption demand of target customer. At the same time, innovative solutions are made correspondingly. As a result, both social and economic benefits are shown. In the development and construction phase, take the Pile Function Optimization for example, significant economic benefits were made because of the innovative solutions based on the implementation of VE. This shows that, at this stage, VE can be used to evaluate whether the function of single project and investment matches each other so that further effort could be made to improve the function or lower the costs. The author also has shared personal experiences in practice and his own views. This paper is just a reference for the colleagues who are doing the same research.