Value Engineering vs. Corner Cutting: How to Tell the Difference Before It Costs You
- Gene Fitzwater
- 24 hours ago
- 2 min read
In the heat of a project, every contractor hears it: “Can we shave a little cost here?” or “Is there a cheaper way to do that?” The phrase “value engineering” gets thrown around like a magic fix-all, but too often, it’s misunderstood—or worse, misused.
At its core, value engineering (VE) is a systematic, creative process focused on improving value—either by reducing cost without sacrificing performance or by improving performance without raising cost. It’s a powerful tool when done right. But there’s a fine line between VE and cutting corners and knowing where that line is can be the difference between a successful build and a reputation-shattering failure.
What Value Engineering Is
Value engineering starts early—ideally during design development—and it’s best performed by a team of stakeholders: architects, engineers, contractors, and subcontractors working together to identify alternative materials, methods, or designs that can save time or money without sacrificing durability, code compliance, or function.
A few real-world examples we’ve seen across the industry:
Switching from structural steel to laminated timber framing in a low-rise office build, cutting cost and lead time without sacrificing strength.
Prefabricated bathroom pods used in hospital construction to cut install time by 40% and improve quality control.
Rerouting mechanical systems in a renovation project to reduce chases and soffits, saving thousands in drywall and finish costs.
What Corner Cutting Looks Like
Now here’s where it gets dangerous.
Corner cutting often masquerades as VE—but without real analysis or stakeholder approval. It might involve:
Swapping a UL-listed fire-rated assembly with a cheaper, non-rated system.
Substituting materials without written approvals.
Skipping testing, inspections, or detailing to “keep moving.”
These moves save money in the short term—but often void warranties, violate codes, delay occupancy, or worse—cause legal exposure.
Spotting the Difference in Real Time
Ask yourself:
Was this change proposed in writing, with review by the architect or engineer of record?
Is there manufacturer data, load testing, or spec sheets to back it up?
Will the change impact code compliance, warranty, or long-term durability?
Has it been formally approved and documented?
If the answer to any of these is “no”—it’s not value engineering. It’s a risk.
The Subcontractor’s Voice in VE
Some of the best VE suggestions come from those in the field. Electricians, HVAC techs, framers—they see opportunities the design team may not. That’s why a good GC or CM encourages open sharing of cost-saving ideas during bidding and preconstruction.
As one seasoned PM told us:
“If my mechanical sub brings a solution that saves $150K and improves airflow, I don’t just listen—I document it, validate it, and take it to the owner. That’s real value.”
Conclusion: The Value Is in the Process
Done right, value engineering is one of the most powerful tools in construction management. Done wrong, it becomes a liability.
The difference isn’t just in what’s proposed—it’s how it’s vetted, documented, and approved. Because when you’re building something that has to last 30, 40, 50 years or more, cutting corners is never cheaper in the end.