MoDOT’s VALUE ENGINEERING CHANGE PROPOSAL PROGRAM

Missouri Department of Transportation105 West Capitol AvenueJefferson City, MO 651021-888-ASK-MoDOTwww.modot.org

MoDOT’sValue Engineering Change Proposal

Program

The Value Engineering Change Proposal (VECP) program gives MoDOT’s contracting partners the opportunity to present their ideas to improve the value of projects during construction. Since its implementation, this program has saved millions of dollars that have been used for other needs.

This structured program facilitates the discussion between industry representatives and MoDOT’s contract administration staff about how projects might be improved and how the cost to deliver these projects may be reduced.

Partnering for Value

VECPVECPs provide a product of equal or improved quality by reducing the project’s total cost, improving the project’s safety or decreasing the time required to complete the project. The proposal is initiated by the contractor (using the VE Change Proposal process) who receives up to 50 percent of the savings associated with the proposal, should it be approved by MoDOT.

PDVECPA Practical Design Value Engineering Proposal (PDVECP) is similar to a VECP, however it may provide a product of lesser value, use an existing item in place or change construction processes resulting in a reduction of contract quantities. Since PDVECPs are often a reduction in scope, it is important they not adversely affect safety or function of the final product. A PDVECP is initiated by the contractor or MoDOT staff in cooperation with the contractor. If approved the contractor is eligible to receive a maximum of 25 percent of the associated savings.

All change proposals are to be submitted on the form available on MoDOT’s website (www.modot.org/ValueEngineering/VECP), and shall contain the following information:

a. A description of both the existing contract requirements for performing the work and the proposed changes.

b. A detailed estimate of the cost of performing the work under the existing contract and under the proposed change.

c. A statement of the time within which the engineer must make a decision, including the probable effect the proposal will have on the contract completion time.

d. An itemized list of the contract items of work affected by the proposed changes, including any quantity variation attributable.

e. A description of any previous use or submission of the same proposal by the contractor, including dates, job numbers, results, and/or outcome of the proposal if previously submitted.

The Resident Engineer will work with the contractor to review and determine the disposition of the submittal in a timely manner.

For complete details associated with the administration of VECPs and PDVECPs on MoDOT projects, please see Sec 104.6 of the Missouri Standard Specifications for Highway Construction.

Submitting Proposals

MoDOT’s Value Engineering Program

OverviewThe goal of value engineering is to build the right project at the right time, meeting the project need with appropriate scope. MoDOT uses the Value Engineering (VE) program to ensure the public receives good value for every tax dollar invested in Missouri’s transportation system. Due to decreasing funding, MoDOT is increasingly focused on smaller, taking care of the system type projects that are not traditionally targeted by the VE program. However, these projects still include opportunities for improvement and MoDOT must be innovative in utilizing the VE process to search for solutions to reduce project costs and provide additional value.

MoDOT uses design phase value analysis to remove unnecessary scope, reduce project costs and improve project flexibility. Value analysis includes specific, targeted processes aimed at improving the project value, including the formal VE program studies. MoDOT uses construction phase value engineering to partner with industry and find more cost effective methods to accomplish the proposed work on projects. During the construction phase, the Value Engineering Change Proposal process encourages contractors to submit proposals to deliver improved projects of good value.

Missouri Department of TransportationLlans Taylor, P.E., A.V.S.Phone: 573.751.7412

Fax: 573.526.3261Email: ValueEng@modot.mo.gov

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