The purpose of the Value Engineering Proposal Program (VEPP) is to encourage contractors to develop Value Engineering ideas by utilizing their design and construction ingenuity, experience, and background. A Value Engineering Change Proposal (VEP) is a post-award proposal made by the construction contractor which includes any changes to work that may potentially result in cost or time savings, without impairing essential functions and characteristics of the project, such as: service life, safety, reliability, economy of operation, ease of maintenance, desired aesthetics, design, standardized features, and environmental.
As part of every NCDOT construction contract, is the 2018 Standard Specification Section 104‐12, which includes the Department's policy on VEPs. It is the NCDOT's policyto provide all Contractor's that are awarded projects in our State an incentive to pursue cost reduction proposals with the Department as it is in everyone's best interest that tax payer dollars are spent as efficiently as possible.
A quick overview of how a VEP is processed:
Contractor Submits Preliminary Proposal
- Contractor submits a conceptual proposal shown through sketches, mark‐ups on existing plan sheets, a short description, and breakdown of costs associated with the proposal.
- The Department uses the Preliminary to review the merit of the conceptual proposal prior to the Contractor spending time and money developing a more detailed Final Proposal.
Preliminary Proposal Reviewed
- Review by Resident Engineer, the Value Management Office, and Technical Units.
- If the VEP meets the requirements and has technical merit, the Resident Engineer will inform the Contractor to submit a Final Proposal, addressing any comments or concerns.
Contractor Submits Final Proposal
- Final Proposal must include: design calculations, contract plan sheet modifications, contract document changes, and a cost savings estimate based on contract line items, all at the Contractor’s expense.
Final Proposal Reviewed
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- Reviewed by Resident Engineer, Value Management, and Technical Units.
- Value Management will send the recommendations to the Construction Unit and if accepted, the Construction Unit will send an approval memo to the Resident Engineer, authorizing a Supplemental Agreement.
- The Resident Engineer will create a Supplemental Agreement for the project to make the necessary changes based on the proposal, including cost savings.