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Value Engineering Change Proposals

Objectives. Submittal RequirementsReview ProcessCase Studies. What is a VECP?. A cost reduction proposal that the Contractor initiates and develops for the purpose of refining the contract. The proposal must result in savings without degrading safety, operations, maintenance, aesthetics and essential functions..

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Value Engineering Change Proposals

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    1. Value Engineering Change Proposals Kurt Lieblong, P.E. Project Management Office 2007 Construction Conference

    2. Objectives Submittal Requirements Review Process Case Studies

    3. What is a VECP? A cost reduction proposal that the Contractor initiates and develops for the purpose of refining the contract. The proposal must result in savings without degrading safety, operations, maintenance, aesthetics and essential functions.

    4. What’s Not a VECP? Correction of plan errors Substitution of another design alternate that was available to bid Proposal not identified as a VECP

    5. Submittal Process Contractor floats idea to FDOT Construction Construction provides feedback to Contractor Construction schedules concept meeting if necessary (Recommended) Contractor formally submits VECP package.

    6. Submittal Requirements Per Section 4-3.9 of Spec Book Description Separate detailed cost estimates Revised plans Collateral costs Engineering Analysis Date decision needed Description of differences between proposed and existing Contract Separate detailed cost estimates for both existing contract and proposed change. Revised plan sheets, details, Description of differences between proposed and existing Contract Separate detailed cost estimates for both existing contract and proposed change. Revised plan sheets, details,

    7. Description

    8. Cost Estimates Separate existing & proposed. Breakdown by contract items Indicate increases, decreases & deletions Identify new items by pay item.

    9. Plans Revised plan sheets, plan details , design standards etc. Sufficient to describe proposed changes

    10. Collateral Costs What are Collateral Costs?

    11. Engineering Analysis Effects on other project elements Pre-qualified consultant in type of work. Computations and drawings signed & sealed by Contractor’s Engineer.

    12. Schedule Date a decision is required.

    13. Review Process FDOT Construction copies District Value Engineer (DVE) Determine if contractor date can be met. Construction & DVE identify reviewers. Distribute VECP to reviewers

    14. Review Process Construction reviews contract requirements, constructability and price proposal. DVE coordinates Department review, including EOR. Category 2 Bridges sent State Structures Office

    15. Review Process Comments & recommendations compiled from reviewers. If necessary schedule a comment resolution meeting Prepare & send recommendation to District Management.

    16. Review Process Notify Contractor of decision. If approved begin SA process with savings split 50-50.

    17. Category 2 Bridges Conditions of Acceptance: Spec 4-3.9.7 Independent engineering peer review funded by contractor Not involved in VECP design Pre-qualified under 14-75 Contractor designate primary engineer responsible for the VECP design

    18. Review Process Turnpike uses Electronic Review Comment (ERC) System for review. Several Districts use e-mail for review. DVE must be copied on all response e-mails. Flowchart of review process posted on Project Management Office web.

    19. Case Studies

    20. I-95 @ SR 80 (Southern Blvd) Major Interchange Widen SR 80 bridges over I-95 Original design - steel girders

    21. Contractor submitted VECP to change steel girders to concrete (AASHTO Type V). Minor changes to Pier Caps to accommodate change. Savings - $500,000 I-95 @ SR 80 (Southern Blvd)

    22. Original traffic control plan include 3 diversions on I-95 that would result in 10 traffic switches Contractor submitted VECP proposing to eliminate 2 diversions. Totally close I-95 from 10:30 PM TO 5:00 AM. I-95 @ SR 80 (Southern Blvd)

    23. Channel I-95 traffic to Southern blvd off ramp & back on I-95 using adjacent on-ramp. Eliminate crossovers & multiple traffic switches Savings - $1.8 million I-95 @ SR 80 (Southern Blvd)

    24. SR 60A (Van Fleet Dr) Original design - 2 bridges with a center island. One bridge crossed CSX & Abandoned rail spur One bridge crossed Polk Street Center Island divided community

    25. SR 60A (Van Fleet Dr) VECP proposed single bridge over Polk Street & CSX. Eliminate center island re-connect community. Savings - $78,000

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