Adopting value engineering would circumvent building materials’ price hikes in Egypt

Adopting value engineering would circumvent building materials’ price hikes in Egypt

Egypt - The price spikes in construction materials in Egypt’s real estate market, high rates of inflation, and the interest rates have led real estate developers to increase their units’ prices amid expectations that prices will hike by more than 30% by the end of this year.

Accordingly, value engineering has become a necessity imposed by the high cost of construction as a result of the high prices of raw materials.

Real estate developers believe that the application of value engineering raises the value of various projects with significant improvement and a clear reduction in their cost, which helps improve the profitability of these projects.

Value engineering is a systematic, organised approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives without sacrificing functionality. It is focused solely on the functions of various components and materials rather than their physical attributes.

Head of the ECB Expertise House Mohamed Abdel Ghany said that value engineering has become of paramount importance to everyone working in the field of construction and development, especially real estate developers and the state, given that the construction industry in Egypt is currently witnessing a boom in