2 pages essay
This week we talked about negotiations and the work that needs to go into preparation as well as how we approach the other side. The work of value engineering involves a degree of negotiations as well.
In two pages tell me how you would deal with the following situation.
You are the construction manager for the owner. Your current contract gives you little power other than that of persuasion. The owner wants to enter into a value engineering activity to reduce the cost of the project. The architect/engineer is currently 50% complete with the design. The project budget has an allocation of $50,000,000 set aside for construction, and the current estimate is at $55,000,000.
The owner has said to you, “I don’t care what it takes, make the budget work, and I’m not willing to give up any scope”.
A preliminary discussion with the architect results in an awareness that she is not willing to sacrifice the perceived quality of the design. The A/E (architect) has also stated that she is not willing to even sit down and discuss value engineering. If forced, she apparently will not be a willing participant. The owner continues to persist.
Lay out the steps you would take to make this happen. Review the notes I provided on Blackboard. Consider what we have talked about regarding negotiations and tell me your plan. Think about preparation, engagement with the different parties, and the possible impact to the project.
Two pages, please
