Value Engineering (VE). The Department of Transportation, Infrastructure & Energy (TIE) will entertain proposals brought forth by any bidder for Value Engineering (VE). The Department will review all proposals for technical merit and proposed cost savings. The Departm ent will then advise whether or not the VE Proposal is feasible. The Department’s decision shall be considered final. Proposal(s) from any bidder shall be submitted with their tender submission, bound and clearly separated from the primary tender submission, complete with a cover letter (signed and dated) summarizing the overall concept of the proposal. The cover letter shall also clearly state the amount of cost savings indicated both in written and digit format. Proposal(s) from any bidder shall contain a detailed breakdown of all related work activities complete with associated costs (credits and debits), with the net cost savings clearly indicated. All submitted proposals shall be reviewed by TIE as part of TIE’s evaluation in to order to determine the successful Contractor. Any proposals deemed acceptable to TIE will be eligible for cost savings sharing of 50% for the Department and 50% for the Contractor. There will be no compensation for those proposals which are deemed unacceptable. Note the 50/50 cost savings sharing shall not be applied to any credits to the Contract nor unused quantities. The cost savings sharing shall ONLY be applied to VE Proposals brought forth by the Contractor and agreed to with the Department. All costs related to updating TIE and/or Consultant drawings as a result of an accepted proposal shall be covered by the Contractor, independent from the 50/50 cost split items.
Value Engineering (VE). Value Engineering shall mean a function-oriented, structured team approach used to analyze and improve Value in a project. It is a powerful methodology for solving problems and improving performance and quality. Reducing cost may be a by-product of Value Engineering, improving value is the objective.
Value Engineering (VE). Proposed VE items included in the GMP shall be updated from previously submitted VE items and should reflect the “final acceptance” of VE items, which are part of the scope of work. The VE schedule shall identify current acceptance and the date of acceptance in an adjacent column. VE items must be resolved and accepted by the Owner prior to GMP submittal.
Value Engineering (VE). Analysis
Value Engineering (VE). Is a systematic method to improve the “value” of design, goods or products, processes, and services by using an examination of function. Value, as defined, is the ratio of function to cost.
Value Engineering (VE). The CMR shall, after a complete review of the Project program and understanding of the intent of APS and the A/E, provide VE services as described below and offer cost savings suggestions and best value recommendations to APS. All recommendations must be fully reviewed with APS and approved prior to implementation. APS views VE as an ongoing process. The CMR is expected, therefore, to be pro-active and participate on an ongoing basis relative to VE ideas. VE efforts shall result in a design that is most effective in first costs as well as long term operational costs relative to issues of energy use and facility maintainability. VE studies shall include life cycle cost analysis as may be required to achieve an appropriate balance between costs, aesthetics and function particularly where VE affects the Project’s energy or acoustical performance. VE efforts shall also take into consideration applicable constructability issues. The CMR shall notify, in writing, APS upon observing any features in the design that appear to be ambiguous, confusing, conflicting or erroneous. All VE studies must be provided on a timely basis within the design schedule. VE studies shall be continuous as the design is being developed. The CMR shall maintain a VE log inclusive of VE item description, cost, and Project team’s recommendation (accepted, pending, rejected). There shall be a major VE Study Report at the Design Development (DD) submission (utilizing the DD documents) which shall include, but not be limited to, the items noted below, conducted and/or provided by the CMR. Although the major VE session is expected at DD, it is not intended to be the only VE discussion; rather it is anticipated that most of the potential VE savings be identified prior to the DD documents:
