Construction Curiosities #115
Value Engineering vs Value Cutting | Find Incentives for your Projects
Hey! Happy Sunday! Matt here.
Welcome to the Construction Curiosities newsletter!
I promised last week was the last week of Design. Welp, I lied.
Let’s do one more!
And then it’s off to the land of Permitting, Approvals, and Regulatory! Yay!
Summary
This week we will look at:
One Musing: Value Engineering vs Value Cutting
Tariff Article Round Up
Contech Corner: IncentiFind
One Meme: I’m a Poor Myself
Value Engineering vs Value Cutting
written by Joshua Verch, Senior Advisor - The Baldwin Group (Joshua.verch@baldwin.com)
Whether it’s a couple designing their “Dream” home, or developers looking to make a statement with a marquis project, it’s easy to get carried away in the design process.
I’ve worked with architects and draftsman that specialize in custom home design. They are creative, talented and produce impressive designs that are sometimes breathtaking.
The only problem is that, in my experience, they rarely have a good grasp on the cost implications of their designs.
What I’ve seen happen many times is Architectural Plans that were created without a GC involved, get sent out for bid, and when the cost of the project comes back A LOT higher than the budget allows, the owners go down one of these paths.
1. Chopping Up the Baby
As the name implies, not a fun process for anyone involved. The owners start changing materials and reducing or removing design elements to save money. In home building, this usually kills the personality of the project in the owner’s eyes.
2. Start Over
Owners go back to the architect and start over with the input they got from the GC, costing them both time and money in the form of interest charges and extended rental costs. This also makes the process infinitely more stressful for the family involved.
3. The project is scrapped.
I’ve seen this happen many times, and disappointment is an understatement.
When a GC is involved from the beginning, it can make the project better AND less expensive through Value Engineering.
So, what is Value Engineering? It’s applying knowledge about design and material costs while the ink on the plans are still wet so you can improve the project and reduce costs.
In custom home building, these can include items like
High-end materials (marble vs porcelain tiles)
Foundation size (concrete, rebar, and fill dirt are expensive)
Complex framing requirements (think labor and engineering costs)
Window size (impact window costs increase sharply for large sizes)
Aesthetic materials (consider faux wood beams, stone veneers, concrete sheets)
Including a GC in the design phase isn’t just about keeping costs down, it’s about designing a home that is both beautiful and buildable.
Thanks, Joshua, for putting a bow on the Conversation about the importance of having a Contractor (& Owner’s Rep) involved in the Design Phase of a Project!
Article Round-Up
Tariffs are the hot topic in the industry. Here’s a quick round-up of some articles you may have missed:
Sweeping new tariffs put future construction projects at risk
Trump tariffs to hit HVAC, plumbing hard, analysts say
Tariff worries force firms to rethink contracts
How Tariffs May Impact the Construction Industry in 2025
ConTech Corner
Worried about the rising costs of construction due to tariffs?
Did you know that your project most likely qualifies for a number of incentives and/ or rebates?
Did you know its a pain in the ass to find them and apply for them?
Did you know there was a better way?
Meet IncentiFind.
They make finding Construction Incentives and Rebates a breeze. They will even handle the whole application process and coordinate all verification inspections on your behalf.
Here’s a few Case Studies showing what you could be leaving on the table:
The process is easy:
1. Run a FREE Quick Summary to see which Incentives are available for your project address.
2. Verify
Get a VERIFY Report to confirm the available incentives work for your project’s scope of work. ($500 for commercial & $25 for residential)
3. Apply.
Let the IncentiFind team do the heavy lifting on your behalf.
4. Save.
Build your project or perform your facility upgrades and Collect your Incentive check.
To get a FREE Quick Summary for your project or upcoming potential projects, head right here:
P.S. - I’ve actually gone through this process with IncentiFind on a project of mine previously. If you have any questions, I’m an open book on my experience. Hit me up: matt@constructionyeti.com
One Meme
When the Owner hits you with that Uno Reverse Card.
See y’all next week! ✌
