Cost & value

Cost, value engineering and life-cycle thinking

Cost is where performance ambitions are either protected or quietly deleted. On this project the argument that held the line was life-cycle cost: measures were defended by what they save over decades of hospital operation, not by their capital price.

Main works contract
≈ USD 740 million, awarded 2018
Gross floor area
≈ 244,000 m²
Delivery model
Large single-site consortium contract with strong early buildability input
Cost management
Independent cost consultancy running in parallel with design development

Value engineering as a performance risk

Every VE round is a test of whether shading depth, plant efficiency and façade quality can be justified. Simulation results were used as the evidence base so that cuts were argued on operating cost, not on drawing appearance.

Capital versus operating cost

A hospital runs 24/7 for decades; a small efficiency gain in chilled-water plant repays its premium many times. Framing decisions this way is what kept passive-first design intact.

Productivity as cost control

DfMA, prefabricated bathroom units and prefabricated MEP reduced site labour, rework and programme risk — cost benefits that also show up as quality and durability.

Disruption cost

COVID-19 manpower restrictions and supply-chain disruption carried programme and cost consequences; off-site manufacture and a live 4D model cushioned the impact.

Evidence still needed

Final account movement, VE items lost, and measured operating cost against forecast — all best obtained from the client and cost consultant.