Value Engineering Calculator

Compare Value Engineering approach vs cost cutting. See the financial impact on your projects.

Project Parameters

Project Budget: $5,000,000

VE Study Cost: $15,000

Identified VE Savings: $125,000

Potential Future Defect Costs: $300,000

Value Engineering Approach

Savings:$125,000

Study Cost:-$15,000

Net Benefit:$110,000

ROI:733%

Cost Cutting Approach

Immediate Savings:$150,000

Future Defect Costs:-$300,000

Net Impact:$-150,000

ROI:-100%

Recommendation

Value Engineering provides superior long-term value compared to cost cutting. By investing $15,000 in a VE study, this project can realize $125,000 in identified savings with zero quality risk, achieving a payback period of just 1.4 months.

In contrast, cost cutting saves $150,000 upfront but exposes the project to $300,000 in potential future defect costs, resulting in a net negative impact of $-150,000.