4.5 Value Engineering
A VE analysis is a systematic process to evaluate a project by a multidisciplinary team of individuals not directly involved in the project. The VE analysis provides recommendations which could potentially reduce the time to complete the project, improve the value and quality of the project, and provide a project which functions safely and efficiently at the lowest cost. For maximum benefit, the VE analysis must be conducted as early as possible during the planning or preliminary design phase.
Consult with DES Division as early as possible if assistance is needed with the VE analysis.
The following project types require a VE analysis:
All projects on the NHS that utilize FAHP funding with an estimated total project cost of $50 million or more. Total cost threshold considers
all project related costs
, not just construction cost.- All bridge projects on the NHS utilizing FAHP funding with an estimated total project cost of $40 million or more. Bridge projects include projects with the primary purpose to construct, reconstruct, rehabilitate, resurface, or restore a bridge;
- Any major project (see ) located on or off of the NHS that utilizes FAHP funding in any contract or phase comprising the major project; and
- Any project FHWA considers appropriate and that uses FAHP funding.
FHWA encourages conducting an additional VE analysis if a major project is split into individual contracts and their combined costs meet or exceed the threshold values.
A VE analysis is not required for projects delivered using the design-build method of construction. If the PM chooses to conduct a VE analysis, this must be performed before the Request for Proposal (RFP) release.
No exceptions to the federal VE requirement will be granted by FHWA.
4.5.1 VE Analysis
A VE analysis has the potential to optimize the value and quality of a project. Review and assessing a project by a multidisciplinary team evaluates the constructability, safety, ROW, economic, environmental and operational benefits of alternative designs.
A VE Job Plan is a systematic action plan led by a Certified Value Specialist (CVS).
The VE Job Plan must include and document the following seven phases:
- Information Phase:gather project information, commitments, and restraints (may be done prior to the actual study).
- Function Analysis Phase:analyze the project to understand required functions.
- Creative Phase:generate ideas to accomplish required functions which improve the project's performance, enhance its quality, and lower project costs.
- Evaluation Phase:evaluate and select feasible ideas for development.
- Development Phase:develop the selected alternatives into fully supported recommendations.
- Presentation Phase:present the VE recommendation to the project stakeholders.
- Resolution Phase:evaluate, resolve, document and implement all approved recommendations (District completes the VE Form).
Upon completion of the VE workshop:
- A final report is prepared by the facilitator and sent to the District and DES;
- Recommendations and values are entered into the TxC Value Engineering Form by the CVS;
- TxC routes the Form for revisions and approval tracking;
- District management determines resolution of recommendations; and
- Completed TxC Approval 1 completes the VE Job Plan.
Considerations when performing a VE workshop include:
- Consider a VE analysis when the total project cost is approximately $10 million less than the required threshold to mitigate for inflation or late changes in the estimate;
- Schedule the VE workshop to be performed during the preliminary design phase of project development;
- Perform VE analyses on high cost and complex projects (regardless of funding source);
- Consider inviting representatives from local public agencies, utility companies, commercial interests, and special event facilities to participate in VE workshops on projects in highly urbanized areas that will impact these stakeholders; and
- Consider any environmental commitments that will be required to obtain environmental clearance for the project.
4.5.2 Design Revisions Based on VE Recommendations
Depending on the results of the VE workshop, the geometric schematic may need to be modified. If the design and/or layout is revised, the District’s review team should review the revised materials as discussed in
.
All review comments from the District review team should be documented and addressed in the Schematic QC Checklist.
Environmental studies or approvals may need to be reevaluated to incorporate VE recommendations and design modifications.
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