The sustainability of construction projects often hinges on managing costs effectively, as illustrated by the case study of an ASN housing building project in Sofifi, North Maluku. This research aims to achieve significant cost savings by optimizing the selection of construction materials and methods, utilizing the Value Engineering Method. This method systematically assesses the value of each component relative to its function, promoting an innovative approach to minimizing unnecessary expenditures. The research followed several structured stages: information gathering, creative ideation, analysis, evaluation, and development, each focusing on identifying feasible alternatives to reduce costs. The analysis identified two key solutions: replacing conventional flooring with precast materials for floor work and substituting lightweight brick walls with red brick walls. Implementing these changes reduced the total project cost from IDR 2,295,005,206 to IDR 1,698,939,324, achieving savings of IDR 596,115,883 (35%). The findings of this study provide practical implications for construction project management, offering a structured approach to material and method selection that can be adapted to broader-scale projects for enhanced cost-efficiency.