U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
202-366-4000


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Appendix K Example Specification for Value Engineering

RIDOT Specification

SECTION 104.99 VALUE ENGINEERING

PURPOSE: The Contractor may submit to the Department value-engineering (VE) proposals that change the Contract Documents resulting in Construction Cost Savings and Time Savings. The Department will share with the Contractor any cost savings that result from an approved VE proposal.

GENERAL REQUIREMENTS: The VE proposal must conform to the latest Rhode Island Department of Transportation Standard Specifications for Road and Bridge Construction and Rhode Island Standard Details and environmental permit regulations and requirements.

The VE proposal must maintain the essential functions and characteristics of the facility including but not limited to safety, service life, ease of maintenance, and appearance.

The Contractor's Conceptual VE proposal will be reviewed by the Department, and if approved, the Contractor shall submit a formal VE proposal including revised drawings prepared and stamped by a Rhode Island licensed Professional Engineer, specifications, distribution of quantities and cost savings, which reflect the work required to complete the VE proposal.

CONDITIONS: The Department will be the sole judge of the VE proposal in determining the following:

  1. Approval or Disapproval
  2. Construction Cost Savings
  3. Time Savings
  4. Advantages andlor Disadvantages

The Department reserves the right to disregard the contract unit bid prices if, in the judgment of the Engineer, such prices do not represent fair value for the work to be performed or deleted. The Engineer will adjust the contract unit bid prices in evaluating the Construction Cost Savings of the VE proposal. If the Department approves the VE proposal, the Department will order changes to the Contract Documents that reflect the VE proposal in accordance with the appropriate subsections of Section 104 of the Rhode Island Standard Specifications for Road and Bridge Construction, 1997 Edition and all applicable compilations of approved specifications.

MEASUREMENT AND PAYMENT: If the Department approves the VE proposal, the Department will provide measurements and payments in accordance with the appropriate subsections of Section 109 of the Rhode Island Standard Specifications for Road and Bridge Construction, 1997 Edition and all applicable compilations of approved specifications.

The Department and the Contract or shall equally share the Construction Cost Savings amount resulting the VE proposal. The Contractor shall receive 25 percent of the Contractor's share when the VE proposal is approved. The Contractor shall receive 75 percent of the Contractor's share when the Engineer has accepted the work related to the VE proposal.

The Department will not reimburse the Contractor for any engineering or preparation expenditures of the VE proposal.

Updated: 08/21/2013
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000