Value Engineering Change Proposals

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
Whats 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

7
Description
Description
Clear Description of the changes to the original
design
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?

Collateral Costs are the cost of ownership
Estimate of the effects the VECP would have on
collateral costs
11
Engineering Analysis

• Effects on other project elements
• Pre-qualified consultant in type of work.
• Computations and drawings signed sealed by
  Contractors 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 _at_ SR 80 (Southern Blvd)

• Major Interchange
• Widen SR 80 bridges over I-95
• Original design - steel girders

21
I-95 _at_ SR 80 (Southern Blvd)

• Contractor submitted VECP to change steel girders
  to concrete (AASHTO Type V).
• Minor changes to Pier Caps to accommodate change.
• Savings - 500,000

22
I-95 _at_ SR 80 (Southern Blvd)

• 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 1030 PM TO 500 AM.

23
I-95 _at_ SR 80 (Southern Blvd)

• 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

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

26
(No Transcript)
27
(No Transcript)
28
Questions
Kurt Lieblong [phone] kurt.lieblong_at_dot.sta
te.fl.us www.dot.state.fl.us/projectmanagementoffi
ce/