As material and labour costs continue to rise over time, and pressure builds on both self-build and commercial projects, many across the industry are turning to value engineering as a practical solution. It’s not about cutting corners, but making smart, strategic choices that reduce costs without compromising on design, performance, or quality.
Whether you’re managing a large-scale development or planning a one-off kitchen refit, value engineering offers a way to stay on budget without sacrificing the look or functionality of your space. The design experts at EGGER are here to break down what value engineering really means, and how you can leverage it for your next project.
What is value engineering?
According to Ahrefs, Google searches for terms like ‘value engineering in construction’ and ‘value engineering meaning’ have more than doubled over the past five years, as cost pressures prompt both professionals and homeowners to rethink how they design and build. It’s clear there’s growing interest, but what exactly does value engineering involve?
At its core, value engineering is about getting more out of your budget — not by compromising on quality, but by taking a more intentional, informed approach to specification. That might mean selecting alternative materials that offer the same performance at a lower cost, simplifying fabrication methods, or removing unnecessary complexity from the design.
Some common examples of value engineering in practice include:
- Selecting materials that optimise efficiency. It could be through reducing cost, shortening lead times, or simplifying installation.
- Switching from real materials to high-quality alternatives. For instance, opting for durable laminate flooring over engineered hardwood flooring. The alternative materials deliver the same aesthetic, but with a lower price tag, and often with better performance.
- Choosing products that promote material circularity. Materials might contain recycled content or be recyclable at the end of their life cycle.
- Streamlining fabrication. This can be achieved by specifying pre-finished or ready-to-install materials, or cutting down on labour costs and project timelines.
The benefits of value engineering
When applied thoughtfully, value engineering can deliver more than just upfront savings. It can often improve overall project efficiency by shortening timelines, maintaining consistency across design outcomes, and even lowering environmental impact.
Here are some of the key benefits:
Cost savings without compromise
One of the most obvious benefits is cost. By choosing materials that offer the same look and performance at a lower price point, or by simplifying fabrication and installation, you can achieve significant savings across a project.
This is especially effective on larger-scale developments. For example, opting for decorative faced chipboard instead of a full laminate build-up in lower-traffic areas helps manage both material and labour costs, while still delivering a high-quality finish.
More efficient project timelines
Time is often just as valuable as budget. Choosing pre-finished or ready-to-install products helps reduce the need for extra processing on-site. That means lower labour costs, shorter lead times, and a smoother path to completion.
Building with sustainability in mind
Clever specification choices benefit more than just budget. Choosing materials that contain recycled content, or that can be recycled at the end of life, supports sustainability and helps reduce a project’s embodied carbon.
Take The Stage development by Galliard Homes as an example. By specifying an EGGER carbon-sequestering decorative board, over 230,000 kg of CO₂e was retained across 412 apartments — all without compromising the design or the budget.
Keeping the design vision intact
Smart material choices can also help maintain a consistent look and feel throughout a space. For instance, using the same decorative finish across different core materials — like chipboard and laminate — allows you to balance cost and performance without disrupting the overall aesthetic.
The result? A space that feels considered and cohesive, even if the materials working behind the scenes are doing different jobs.
What to avoid
While value engineering offers plenty of benefits, it’s important to approach it thoughtfully to avoid common pitfalls that can undermine your project.
Don’t sacrifice quality for cost
Sometimes, the cheapest option can lead to problems down the line. It might be reduced lifespan, increased maintenance, or a finish that just doesn’t stand up to daily wear and tear. It’s important to always balance cost savings with long-term performance, particularly in high-traffic areas.
Be sure to understand material differences
Not all materials are interchangeable, even if they look similar. Misunderstandings can lead to specifying a material that isn’t fit for purpose.
EGGER offers materials tailored to specific applications. Laminate, with its resilient overlay and robust composition, is ideal for high-wear surfaces like table tops and doors. On the other hand, Decorative Boards come ready to cut, making it a cost-effective choice for lower-traffic areas like guestroom furniture. Understanding the difference and specifying the right product for the job will help you value engineer efficiently without compromising quality or visual consistency.
Avoid over-simplification
Over-simplifying designs or using cheaper materials across the board can compromise the overall look and reduce the value of the final product. Remember: it’s about making informed, strategic choices — not just cutting costs.
Get expert advice early
Working with specification advisors or material experts early in the design process can help identify the best opportunities for value engineering without surprises later on. A good advisor should provide tailored advice to help you balance cost, design, and sustainability from the project outset.
In support of value engineering, Aimee Fletcher, Product and Design Manager at EGGER said:
“As material, labour, and energy costs continue to rise industry-wide, value engineering is becoming not just a helpful tool, but a vital part of the design and construction process. By taking an informed approach to material selection, specification, and design, you can help protect your budget, your vision, and the long-term value of your project.
“To get the most from value engineering, make strategic choices rather than simply looking to cut costs. Avoid compromising on quality or performance, and be sure to understand the differences between materials. Involving experts early helps ensure every decision supports both the budget and the design intent. With a little careful planning, you’ll achieve outstanding results.”