EGRM 6639 ESSAY Responses. Answer each questions completely and succintly. Enter responses to all
questions on BB in the space provided. (DO NOT ATTACH DOCUMENT). Label each question number with your
response. Make sure your reponses are clear and readable. Thank you.
Q1: Affordable housing is not a new concept now, it has become a very crucial part of the developing real estate
sectors. It is not only an ambitious mission to be achieved, it is the need of the hour in many developing
countries. A roof over the head is a basic necessity and making homes affordable is the only way to make it
possible for everyone. Many governments are taking major steps in the direction. One such method is Value
Engineering.Value Engineering The Mantra of Cost-Cutting in Construction Industry. What is Value Engineering?
Value Engineering is the systematic way of reducing the costs involved in construction of projects while
maintaining the superior quality of the resulting product. In a quest to offer something unique and better than
their competitors, builders try to use high-grade raw material of construction. This only adds exorbitant costs to
the process but the end result is not very satisfactory. This is where Value Engineering comes into play. It
segregates the reasons behind high costs of large-scale construction and devises a proper planning to cut down
those costs. It is not only concerned about the techniques of construction, but starts right from planning and
designing, this is why sometimes it is also referred as Value Management. A vigilance over the planning phase
could save 15-20%. Value engineering focuses on the development of innovative methods of construction that
will be very helpful in overcoming the ambiguities in the construction industry and solving the same through a
set of creative alternatives. Increased productivity, cost reduction and quality end product are the three main
advantages of value engineering. Under affordable housing, builders are expected to provide the trending
residential housing options at a defined price limit. So, instead of using the higher grade elements, developers
can resort to value engineering to increase productivity at the same cost. When unnecessary costs are cut down,
construction will become less costly,thus the end product will be more affordable. Value engineering is the
futuristic method of changing the face of real estate.
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