Cost-Effective Design Solutions for Multifamily Developments

When it comes to the process and complex operation of developing a mixed-use or multifamily building, the one key factor that can significantly impact a project’s budget is time. In some instances, from initial design concept to grand opening the cost projections for a multifamily development can drastically increase.

The mixed-use and multifamily sectors both face the challenge of unpredictable and rising costs of important elements like labor and materials. When extended timelines lead to fluctuating costs, resulting in the project’s budget being impacted, the design team typically mitigates these challenges through a process called value engineering.

At its core, this process allows architects to engage in problem-solving solutions and find more innovative methods or materials to achieve the same or comparable results at a lower cost. However, creativity is often the unspoken element of this process and the method in which architects use their skills and knowledge to integrate these changes seamlessly.

Collaboration & Cost-Effective Design Solutions

It’s important to know that subtle changes to the building design or materials doesn’t necessarily have to impact the overall vision for the project. The architect’s goal is to collaborate with the client, the general contractor and any additional consultant firms to identify cost-saving measures without losing the character and quality of the original design.

The design team will often consider value engineering options before the project ever exceeds budget estimates. However, in the event that a project does face unavoidable cost increases, the process to maintain the viability of the project can include:

A brainstorming session with the structural engineering team to evaluate the current structural system and discover more efficient layouts and recommended changes.
Collaborating with the general contractor to produce a line-by-line evaluation to identify areas that can be modified to benefit the budget.
Offering the client recommendations on alternate materials or finishes in an effort to be proactive on more cost-effective solutions, which allows the architect more control over the aesthetics of the final selection.
The architect team can review similar and past projects with comparable square footage or aesthetics to gather inspiration regarding more cost-effective materials or methods.

The value engineering process is fueled by open communication, collaboration and ingenuity. For everyone involved, the goal is to achieve the final budget without sacrificing quality, even when overages exceed thousands or millions of dollars.

Value Engineering Ingenuity in Action

The value engineering process and key priorities are unique to each project, but the path to meeting the final budget can include changing minor details, making a few large-scale adjustments, or a combination of the two.

Here’s a few examples of how minor design changes can sometimes make a substantial impact on budget:

Consider more cost-effective alternatives in areas that receive lower visibility or aren’t frequently used. This includes mechanical or storage doors, back-of-house plumbing or lighting fixtures and tile selections in secondary public restrooms.
Reduce materials without compromising the resident experience. For example, exchanging a nine-foot-wide three-panel sliding door for an eight-foot-wide two-panel sliding door will allow for an unobstructed balcony view while maintaining roughly the same amount of glazing at a reduced cost per door.
When there are multiple projects in progress, it’s possible to negotiate with a manufacturer to make them the preferred vendor and receive bulk pricing. While this isn’t true for all manufacturers, if the project requires hundreds of fixtures, it’s worth pursuing a large order at a discounted rate.

Larger adjustments can deal with façade or interior materials, reassessing amenity spaces or rethinking structural systems:

Review the size of amenity spaces to deliver a more efficient layout, while maintaining the same experience for the end user but with a smaller footprint.
Collaborate to identify building materials that are escalated in cost and find an alternative that performs with the same function and aesthetic.
Incorporate high-impact exterior materials in locations where they achieve maximum visibility and effectiveness.
Adjust column grid spacing and truss layouts to utilize less materials.

The Key to Effective Value Engineering

Navigating the value engineering process for mixed-use and multifamily developments calls for an approach that’s collaborative, flexible and innovative. While rising costs and inflation often weighs heavily on the team’s mind throughout the project’s timeline, it’s important to maintain an open dialogue that fosters creative problem-solving and innovative alternatives.

About the Author

Nicole Curry is the Vice President and Director of Mixed-Use and Multifamily at BRR. Nicole joined BRR in 2021 with more than 18 years of experience designing and managing award-winning multifamily and mixed-use developments in both urban and suburban communities, office buildings, tenant finish and single-family homes. Connect with Nicole to learn more.

Ryan Neiling is an architect that brings over a decade of residential and multifamily experience to the firm. As a registered architect and project lead, he brings both technical knowledge and creative space planning to each of his projects and to his team. Ryan has worked on multiple mixed-use and multifamily developments to bring projects from schematic design to reality through construction administration, maximizing efficiency while creating unique spaces. Connect with Ryan to learn more.