Value Engineering

General
Value engineering (VE) is the systematic application of recognized techniques identifying the function of a product or service, establishing a value for that function and providing the necessary function reliability at the least overall cost. VE studies are required on federally funded projects on the federal-aid system with an estimated
total project
 cost greater than $50 million and bridge projects with an estimated
total project
 cost greater than $40 million. This requirement must be fulfilled before construction is authorized. The LG is encouraged to conduct the VE study soon after completion of the geometric schematic (approximately 30 percent design stage) to facilitate economical incorporation of all VE recommendations into the plans, specifications and estimates.
Federal Requirements
  1. 23 CFR §627.5
    – Requires a value engineering study to be performed for all federally funded projects with an estimated
    total project
     cost greater than $50 million and for all federally funded bridge projects with an estimated
    total project
     cost greater than $40 million.
  2. 23 CFR §627.9(c)
    – States that the requirement to conduct a value engineering study must be fulfilled prior to release of the request for proposals for a design-build project.
  3. 23 CFR §627.7(a)(4)
    – Requires that states establish and document policies, procedures, and contract provisions that identify when Value Engineering Change Proposals (VECP) may be used.
State Requirements
  1. There are no state regulations requiring the application of value engineering techniques to construction projects.
Required Practices
The
LGPM Guide
describes the practices for the LG and TxDOT district required for performance of a value engineering study.
TxDOT does not have VECP policies or procedures in place and, therefore, VECP cannot be used on projects.