Construction Value Engineering Change Proposal (VECP) - Revision history

Clarkj25 at 18:01, 23 October 2024

2024-10-23T18:01:33Z

SchaeferS: Updated content

2022-10-11T18:57:41Z

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Clarkj25 at 19:15, 2 August 2022

2022-08-02T19:15:04Z

Clarkj25 at 15:31, 21 July 2022

2022-07-21T15:31:52Z

SchaeferS: Removed 2012 Spec Book tagline link

2022-01-19T18:43:07Z

Removed 2012 Spec Book tagline link

Clarkj25: Update contact info

2021-06-10T17:53:15Z

Update contact info

JohnsonN23 at 18:45, 19 June 2017

2017-06-19T18:45:03Z

JohnsonN23 at 13:37, 8 June 2017

2017-06-08T13:37:35Z

JohnsonN23: JohnsonN23 moved page Construction Value Engineering Change Proposal (VECP). to Construction Value Engineering Change Proposal (VECP): deleted period

2017-06-08T13:37:05Z

JohnsonN23 moved page Construction Value Engineering Change Proposal (VECP). to Construction Value Engineering Change Proposal (VECP): deleted period

McGowanR at 20:54, 6 June 2017

2017-06-06T20:54:09Z

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 :4. Projects that are identified by the FHWA as Risk Based Project Involvement (RBPI) will have a Stewardship and Oversight (S&O) Plan. If reviews and or approvals of VECPs are specified in the S&O Plan, then the construction/project engineer will contact the respective FHWA Area Engineer upon receiving the VECP.  Based on the scope and content of the VECP, the FHWA Area Engineer will determine if FHWA review and/or approval is required. For non-RBPI projects , FHWA review and/or approval is not required.
-:5. If the VECP is approved, the construction/project engineer will notify the contractor within the proposed change deadline. The construction/project engineer will then prepare and submit the necessary contract modification. Proper documentation is to be attached, included, or referenced in the contract modification. The construction/project engineer is to review the VECP submittal for applicability of liquidated damages if additional contract, stage or open to traffic time is approved. If additional time is approved the construction/project engineer will determine if a time extension will be approved with or without the assessment of liquidated damages. If liquidated damages are assessed as part of the VECP these damages are to be included in the VECP contract modification. The contract modification will be used for final cost approval. Payment must be in accordance with the Special Provision for Value Engineering Change Proposal (VECP).
+:5. If the VECP is approved, the construction/project engineer will notify the contractor within the proposed change deadline. The construction/project engineer will then prepare and submit the necessary change order. Proper documentation is to be attached, included, or referenced in the change order. The construction/project engineer is to review the VECP submittal for applicability of liquidated damages if additional contract, stage or open to traffic time is approved. If additional time is approved the construction/project engineer will determine if a time extension will be approved with or without the assessment of liquidated damages. If liquidated damages are assessed as part of the VECP these damages are to be included in the VECP change order. The change order will be used for final cost approval. Payment must be in accordance with the Special Provision for Value Engineering Change Proposal (VECP).
 :6. If the proposed change is rejected, the construction/project engineer will send documented notification to the contractor and will include the reasons for the rejection. The notification must also note, as stated in the VECP special provision, that the decision is final and there are no appeals.
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 :7. An annual report will be compiled to summarize costs and savings of the VECP program. This information will also be used for FHWA annual reporting.
-:8. The cost savings pay item to be used is, “Value Engineering”, with a pay item code of 1200000 and the pay unit is dlr (dollars) for all contract modifications. This pay item will provide the contractor with their portion of the approved VECP amount and is to be used regardless of the number of VECP submittals.
+:8. The cost savings pay item to be used is, “Value Engineering”, with a pay item code of 1200000 and the pay unit is dlr (dollars) for all change orders with value engineering changes. This pay item will provide the contractor with their portion of the approved VECP amount and is to be used regardless of the number of VECP submittals.
 :9. Approved VECPs will be reviewed for possible inclusion in the design of future applicable projects as well as applicable design standards and manuals. It is the responsibility of the Construction Operations Engineer in the Construction Field Services Division to coordinate applicable specifications and design standard changes with the Design Division and the Statewide Design Alignment Team (SDAT).

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	:e. Administrator of the Development Services Division (if a local agency project)		:e. Administrator of the Development Services Division (if a local agency project)

−	4.Projects that are classified as FHWA ~~Projects of Division Interest~~ (~~PoDI~~) are to be coordinated directly with the respective FHWA Area Engineer. When the VECP is received by the construction/project engineer, they will contact the FHWA Area Engineer responsible for that project. Based on the scope and content of the VECP, the FHWA Area Engineer will determine what FHWA approval is required. For non-~~PoDI~~ projects ~~(known as MDOT Oversight)~~, FHWA approval is not required.	+	4.Projects that are classified as [https://mdotwiki.state.mi.us/construction/index.php/FHWA%E2%80%99s_Risk-Based_Project_Involvement_(RBPI)_Stewardship_%26_Oversight_Plan_(S%26O_Plan) FHWA Risk Based Project Involvement (RBPI)] as noted in the Stewardship and Oversight Plan (S&O Plan) are to be coordinated directly with the respective FHWA Area Engineer. When the VECP is received by the construction/project engineer, they will contact the FHWA Area Engineer responsible for that project. Based on the scope and content of the VECP, the FHWA Area Engineer will determine what FHWA approval is required. For non-RBPI projects, FHWA approval is not required.

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−	If you have any questions, please contact [mailto:~~bellgowanm~~@michigan.gov ~~Matt Bellgowan~~, Engineer of Construction Operations], at ~~616~~-~~690-6701~~.	+	If you have any questions, please contact [mailto:rennerL1@michigan.gov Lindsey Renner, Engineer of Construction Operations], at (517) 202-5356.
−

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-<center>[http://mdotcf.state.mi.us/public/specbook/files/2012/104%20Control%20of%20Work.pdf 2012 STANDARD SPECIFICATIONS FOR CONSTRUCTION - SECTION 104]</center>
 <div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/Construction_Value_Engineering_Change_Proposal_(VECP) Email this Page]</div>
 The Federal Highway Administration (FHWA) Construction Program Guide notes that Value Engineering Change Proposals (VECP) are post-award value engineering proposals made by construction contractors during the course of construction under a value engineering clause in the contract.  Furthermore, federal documentation has defined VECPs as “a construction contract provision which encourages the contractor to propose changes in the contract requirements which will accomplish the project's functional requirements at a less cost or improve value or service at no increase or a minor increase in cost.  The net savings of each proposal is usually shared with the contractor at a stated reasonable rate.”

← Older revision		Revision as of 17:53, 10 June 2021
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−	If you have any questions, please contact [mailto:~~guttingj~~@michigan.gov ~~Jason Gutting~~, Engineer of Construction Operations], at ~~517~~-~~636~~-~~6334~~.	+	If you have any questions, please contact [mailto:bellgowanm@michigan.gov Matt Bellgowan, Engineer of Construction Operations], at 616-690-6701.

← Older revision	Revision as of 13:37, 8 June 2017
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← Older revision		Revision as of 20:54, 6 June 2017
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	Refer to Table A, Value Engineering Change Proposal (VECP) Evaluation Process, and proceed as follows for evaluation and/or approval of the contractor's VECP:		Refer to Table A, Value Engineering Change Proposal (VECP) Evaluation Process, and proceed as follows for evaluation and/or approval of the contractor's VECP:

−	1. When the contractor submits a conceptual or final VECP, it must include all items required by the special provision and [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=~~1162~~.pdf Form 1962], Value Engineering Change Proposal. The form is available on the MDOT forms web page. The form and all required information is to be submitted to the construction/project engineer. The construction/project engineer will provide an electronic copy to all of the parties on the form distribution list.	+	1. When the contractor submits a conceptual or final VECP, it must include all items required by the special provision and [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=1962.pdf Form 1962], Value Engineering Change Proposal. The form is available on the MDOT forms web page. The form and all required information is to be submitted to the construction/project engineer. The construction/project engineer will provide an electronic copy to all of the parties on the form distribution list.