Material selection is crucial in a project because it relates to the cost of the project. One of the impacts of the ineffective selection of materials in cluster residential projects is the high price of housing, which makes it more difficult for people to own a house. This study aims to modify the design, especially materials to find the best alternative that can replace the initial design of the work item in the context of cost efficiency without reducing the quality of the building. This study was conducted using the value engineering analysis method and applying Building Information Modelling (BIM) technology as a support for calculations. After using the BIM tools (Revit) to model the cluster residential project, estimating project costs is easier to do with the help of the quantity take-off function of these tools. Alternative materials to be modified are selected based on the Pareto law of all project work items according to their work breakdown structure. This study found that replacing materials with other alternatives can provide cost efficiencies of up to 37% of the cost of certain work items. The amount of cost efficiency obtained depends on the selection of materials for each of these work items.

Based on the analysis carried out based on the stages of value engineering work, it is concluded that:

1. Components of work that can be optimized using the value engineering method in this project are wall, concrete, finishing, ceiling, door, and window works;
2. Based on the life cycle cost analysis, it was found that alternative wall work using lightweight bricks (Heubel) can provide cost optimization of up to 37% for each type of house L6, L7, and L8;
3. Based on the life cycle cost analysis, it is obtained that alternative concrete works using Tiga Roda brand cement for structural work and other works using cement can provide cost optimization of up to 4% for each type of house L6, L7, and L8;
4. Based on the life cycle cost analysis, it is obtained that alternative frame and ceiling work using wood frames and multiplexes can provide cost optimization of up to 33% for each type of house L6, L7, and L8.