Value Engineering Change Proposals
Eric Kahlig, P.E. - Central Office Value Engineering Change Proposal Coordinator - 614-387-2406
Value Engineering Change Proposals:
Value Engineering Change Proposals (VECP) are post-award value engineering proposals made by construction contractors during the course of construction under a value engineering clause in the contract. The Federal-aid Policy Guide, FAPG G011.9, defines VECPs as "a construction contract provision which encourages the contractor to propose changes in the contract requirements which will accomplish the project's functional requirements at a less cost or improve value or service at no increase or a minor increase in cost.
VECPs are included in each contract, excluding Design-Build projects. 2013 CMS 105.19 & Supplement 1113
define the submittal requirements, procedures, and limitations on allowed VECPs.
Standard Operating Procedure Standard Operating Procedure – 510-008(SP): Sept 14 2011 internal guidance to ODOT personnel
Internal review procedure for Value Engineering Change Proposals:
The Value Engineering Change Proposal (VECP) should be clearly identified as such, and presented IN WRITING as described in the policy to the Project Engineer and to the District Construction Administrator (DCA).
The DCA along with District staff will perform an initial review, summarize findings in writing and determine a preliminary status (approvable/approvable if modified/not approvable). This could be iterative and is outlined in the policy as the initial VECP submission review.
If the District approves the initial review of the VECP, the DCA will forward the VECP along with the findings to the Central Office Value Engineering Coordinator in the Division of Construction Management. This is the preliminary VECP review as outlined in the procedure.
All VECP in excess of $50,000 must be forwarded to ODOT CO VECP coordinator for concurrence in acceptance or rejection. The Central Office Value Engineering Coordinator will coordinate a rapid Central Office review (including Estimating, FHWA and other areas) and direct replies back to the DCE within 15 days.
The District will make a final determination based on the comments and direct the Contractor accordingly.
The Contractor will submit the final VECP proposal to the DCA, who will forward the VECP to the Central Office Value Engineering Coordinator for final review.
Status of Existing VECPs