The idea and the practice
The formal idea is to get the same function for less cost. In day-to-day bidding, the term is used more loosely. The bids are over budget, and the GC asks each sub for ways to save money. People call this VE.
Where VE ideas come from
- A different manufacturer that meets the same performance.
- A different material or finish.
- A simpler layout or fewer item types.
- A different installation method.
- Removing an item the owner does not need.
- Moving an item to an alternate or a later phase.
How a sub offers VE
- Bid the base scope as drawn and specified first.
- List each VE idea as its own line.
- State the deduct for each idea.
- State what changes: product, performance, warranty or look.
- State any effect on other trades.
- Say that the idea needs approval by the architect and the owner.
VE is not a substitution you slip in
A base bid that quietly prices a cheaper product is not value engineering. It is a bid that does not meet the spec. If the product is rejected at submittals, you pay the difference. Keep the base bid clean and show the savings apart.
The risks
- A VE change in one trade can add cost in another.
- A cheaper product can shorten the life or the warranty.
- Savings shown on bid day can shrink after redesign.
- An idea you share may be handed to a competitor to price.
Subs know their products better than the design team does. A good VE idea can save a project that would otherwise be shelved. It also shows the GC that you know your trade. Offer ideas you would stand behind after the job is built.
Bidding and estimating · Updated 11 Nov 2026