5 Benefits of Construction Optioneering
It’s no secret that construction projects are highly prone to error and risk. It’s for this reason that optioneering can be beneficial. Optioneering identifies suitable alternatives, and can be implemented on linear, commercial, and residential construction projects.
While it can be done manually, optioneering in construction is best leveraged when used with technological platforms like ALICE. These platforms help you easily identify options to reduce risk and increase profitability.
The difference between alternatives and options
Although they’re normally used interchangeably, optioneering deals with two main terms: alternatives and options.
An alternative is a strategic but different approach to solving a problem. For example, a construction site may be cleared, but a legal hurdle could make the site unsuitable for commercial use. In such a case, the contractor can use the land for alternative purposes, such as industrial use, rather than leaving it idle.
Meanwhile, an option gives leeway to how a particular problem can be solved. For example, a contractor could be hired to build a safer intersection, and has the option to either install speed bumps or build a roundabout.
The sifting approach method for optioneering
One common optioneering approach is the sifting approach method. This method sees project managers coming up with a long list of alternatives that could possibly be used to solve a particular problem. Once these options have been identified, they’ll then be sifted and filtered out based on various criteria. This may include, for example, viability, cost-saving benefits, and risk.
A use for optioneering: life cycle cost optioneering
Life cycle cost optioneering looks at ways the contractor can reduce the cost of operating a structure or building. Life cycle optioneering will consider factors such as the energy bills of the structure and the amount of carbon waste produced. The design that uses the least amount of energy wins the bid.
5 benefits of construction optioneering
Residential contractors benefit from life cycle optioneering because it allows them to more easily design sustainable and green buildings. Sustainable buildings are preferred for their energy-saving benefits, good indoor air quality, and their use of renewable energy.
Other benefits of construction optioneering include the following.
1. It’s easy to compare two different designs
One main benefit of optioneering is that project managers can compare designs with alternative ones. This lets them know which design has the highest return on investment.
Though some building designs may look good on paper, they may have more maintenance costs than anticipated. For example, they may lack consideration for airflow and natural lighting, making the building temperature less than ideal for inhabitants. This causes more energy to be expended when residents need to use ACs or heaters, increasing overall energy bills.
2. Optioneering makes it easy to develop a maintenance schedule
A maintenance schedule is a plan that details how maintenance work will be done. Optioneering makes it easier to develop one, as it allows project managers to study several options and determine how they will impact the company’s long-term financial position.
Some factors that will be considered when making a maintenance schedule include the manpower needed and the amount of resources available, such as money.
3. It helps lower construction costs
Project managers can reduce construction costs by examining different options for labor and different types of building materials. With optioneering technology, contractors can compare options to determine the best strategy to reduce costs. This can involve, for example, determining whether it will be cheaper to use concrete slabs or brick and mortar.
4. It reduces construction risk
Optionnering technology makes it easy for contractors to identify alternatives to reduce construction risk. For example, suppose a project is behind schedule and risks stalling. In this scenario, contractors can use optioneering technology to identify options for recovery before it is too late.
For instance, they may end up determining through optioneering that it’s best to increase their labor force by 30% in order to remain on schedule, based on the project’s current budget and status.
5. Optioneering helps make competitive bids
Cost is one of the main factors that determines whether or not you win a construction tender. This is especially so if you’re dealing with government contracts. Government tenders can be lucrative, but are more likely to favor companies with lower quotes.
One problem of competing based on price is that construction companies tend to operate on very thin margins. If there’s a sudden increase in material costs caused by external factors like inflation, the company will operate at a loss.
Optioneering helps you make competitive bids by identifying better and more affordable designs to implement.
Optioneering has many benefits
Optioneering is one of the best ways for contractors and project managers to identify solutions to problems that significantly affect construction projects. Optioneering platforms should be adopted to identify alternatives and options quicker and more effectively.