Housing development projects are required to achieve cost, quality, and time targets efficiently, creating a need for effective cost-control methods that do not compromise building function and quality. This study aims to identify more economical material alternatives and determine the potential cost savings from applying Value Engineering to the architectural works of the Mutiara Kedungmundu Housing Project in Semarang City. A case study approach was employed through four Value Engineering stages: information, creative, analysis, and recommendation. Data were obtained from the project’s Bill of Quantities, Unit Price Analysis, and working drawings, and were analyzed using cost breakdown, Pareto analysis, function analysis based on Cost/Worth, Zero-One analysis, and an evaluation matrix. The results identified five architectural work items with high optimization potential, namely walls, door and window frames, floor and wall finishing, roof, and ceiling. Seven selected material alternatives reduced the architectural work cost from Rp155,832,330.69 to Rp144,998,247.48, generating a saving of Rp10,834,083.20 or 6.95% of the initial cost. The selected alternatives maintained the primary building functions, quality, and aesthetic requirements. These findings demonstrate that Value Engineering provides an effective systematic approach for optimizing construction costs in small- to medium-scale housing projects while maintaining essential building performance.
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