Value Engineering Change Proposals
Chase Wells, P.E. - Central Office Value Engineering Change Proposal Coordinator
Eric Kahlig, P.E. (Alternate coordinator)
Value Engineering & Value Engineeering Change Proposal
Value Engineering in Design versus Value Engineering in Construction are two distinct and seperate process.
VE in design (VE studies) refers to the
systematic application of recognized techniques in which a multi-disciplined
team of individuals not personally involved in the design of the project takes
a “fresh look” at the project (generally during the early stages of design) to
ensure that stakeholder needs will be met in an efficient and cost-effective
way. After contract
award, contractors are then encouraged to develop Value Engineering Change Proposal (VECPs) which allow the State to
benefit from the contractor’s ingenuity, experience, and ability to work
through or around restrictions, with any cost savings shared between ODOT and
See the link for ODOT Value Engineering Webpage: Value Engineering in Design
For Training Reference Information: VE and VECP Training
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 may be for Cost, Time, or Cost and Time. VECPs are included in each contract (generally excluding Design-Build projects). CMS 105.19 & Supplement 1113 define the submittal requirements, procedures, and limitations on allowed VECPs.
ABBREVIATED 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 CMS to the Project Engineer and to the District Construction Administrator (DCA).
All VECPs in excess of $50,000 must be forwarded to ODOT CO VECP coordinator for conceptual concurrence in acceptance or rejection. The District should do an initial cursory review to quickly gather District Construction and Engineering initial conceptual review commetns and forward those comments with the VECP to the Central Office VECP Coordinator. The Central Office VECP Coordinator will coordinate a rapid Central Office conceptual review, obtain concurrence from the Deputy Directors of Construction, Operations, Engineering, and the appliciable District. The C.O. VECP cooridinator will directly reply back to the DCE within approximately 48hrs.
If the VECP is conceptually approved, the Contractor is approved to initiate the Preliminary developement of the VECP. The DCE 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 DCE 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.
The District will make a final determination based on the comments and direct the Contractor accordingly.
The Office of Estimating will determine the final value of the VECP.
The Contractor will submit the final VECP proposal to the DCE, who will forward the VECP to the Central Office Value Engineering Coordinator for final review.
For further description of the entire process, see the VE and VECP Training link above.
VECP Process Flowchart
Status of VECPs