Value Engineering Applications in Transportation (2005) / Chapter Skim
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Appendix C - Summary Responses to Questionnaire
Appendix C - Summary Responses to Questionnaire
Pages 74-124
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75 APPENDIX C Summary Responses to Questionnaire
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Often for projects, rarely for processes and products. We currently use value engineering abiding by the FHWA requirements which is total construction costs of $25 Million and on NHS.
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The Department benefits by having independent professionals assess the project. Throughout the final design development phase, ongoing value engineering adjustments are implemented, but not through an extensive VE study.
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Looking at introduction. Policy memo, Project Manager Manual, Value Engineering Coordinator Manual, web site.
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Agency Category 2 AK US DOT 11 GA US DOT 10 FL US DOT 12 HI US DOT 30 NH US DOT 43 SD US DOT 49 WA US DOT 52 WY US DOT 61 ON CDN DOT 64 SK CDN DOT 68 New York US CITY 69 Fed Lands FHWA If so, where do the policies, guidelines, and/or procedures governing the use of VE in your agency come from? AASHTO POLICY, GUIDELINES, AND PROJECT SELECTIONPART 1 Question 4 Federal agency As a state policy, we are to consider any project over $4 million as a candidate for VE.
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Requested by Project Development Team and Projects requested for NHI Training Course. Projects that meet the $25 million federal statutory requirement and the $20 million Department threshold are always selected for VE.
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Comments We have a marine highway system that often requires VE because of the federal cost thresholds. Caltrans has a very large workload imposed by the NHS mandate.
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When the VE process is used, an assigned VE Coordinator would select the team members. For Scope process the line manager assigns project to technical staff to perform Scope, who in turn invites other technical staff to aid in the scope.
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In the event of specialized projects, individuals with specific expertise necessary to perform a proficient value engineering study should be included in the team makeup. They have specific technical expertise They are available in-house staff See previous comment.
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He/She must have a minimum of two years of experience in value engineering on highway projects. NHDOT required the lead VE member be certified for VE studies and to have past experiences.
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50% 25% 0% 25% Ref. Agency Category 2 AK US DOT 3 AZ US DOT 10 FL US DOT 24 MN US DOT 29 NV US DOT 34 NC US DOT 35 ND US DOT 36 OH US DOT 48 VA US DOT 61 ON CDN DOT 64 SK CDN DOT 69 Fed Lands FHWA PART 1 The team is selected based on the type of project; i.e., a bridge project will have a structural engineer.
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There have been 10 VEs completed between 2000 and the first half of 2004. This does not include the value engineering change proposals (VECP)
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Agency Category 3 AZ US DOT 6 CO US DOT 7 CT US DOT 11 GA US DOT 12 HI US DOT 18 KY US DOT 19 LA US DOT 23 MI US DOT 30 NH US DOT 32 NM US DOT 34 NC US DOT 36 OH US DOT 39 PA US DOT 43 SD US DOT 48 VA US DOT 52 WY US DOT 61 ON CDN DOT 64 SK CDN DOT PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 12 Our VE Coordinator would be considered the same as the VE Program Manager. This person reports to the Administrator of the Office of Production.
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Training is available to management and technical staff. The majority of the individuals that are in key positions to deliver the VE program have received training.
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We do not have a formal policy on VE training, however, twice in the last three years we have had an external instructor lead the SAVE International Module I course. Training in FHWA began in 1975.
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. How many of your agency's current technical and management staff have received VE training?
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We do not have exact count. Question 16 Comments All staff going through prior VE training consisted of technical staff.
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None. NYSDOT has no staff certified by SAVE International.
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Occasional training through conferences, also incorporating risk mangement into VE, project performance measurement and other techniques. The only training staff receives is when they participate in a VE study as a team member.
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Agency Category 3 AZ US DOT 5 CA US DOT 6 CO US DOT 10 FL US DOT 18 KY US DOT 19 LA US DOT 23 MI US DOT 24 MN US DOT 30 NH US DOT 31 NJ US DOT 32 NM US DOT 33 NY US DOT 34 NC US DOT 35 ND US DOT 36 OH US DOT 41 RI US DOT 51 WI US DOT 61 ON CDN DOT 64 SK CDN DOT 67 Ottawa CDN CITY 69 Fed Lands FHWA Nothing defined. Our Value Engineer Consultant has several Certified Value Specialists and Certified Cost Engineers.
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Agency Category 3 AZ US DOT 4 AR US DOT 10 FL US DOT 17 KS US DOT 23 MI US DOT 24 MN US DOT 30 NH US DOT 31 NJ US DOT 32 NM US DOT 38 OR US DOT 41 RI US DOT 44 TN US DOT 46 UT US DOT 47 VT US DOT 48 VA US DOT 49 WA US DOT 51 WI US DOT 61 ON CDN DOT 64 SK CDN DOT 68 New York US CITY 69 Fed Lands FHWA National Highway Institute (NHI) , Value Engineering for Highways.
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Training is available to management and technical staff and can fluctuate. N/A Question 21 Comments VE Section has money in their budget for training; however the Section has other duties and therefore not all of it is used for VE training.
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The SDDOT Scope process is similar to the VE process in many aspects, therefore, we perform a formalized scope of the project for most projects. Senior Management is supportive of the VE process developed by KDOT.
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Based upon the successful completion of VE studies for the three large NHDOT projects and the presentation to the Senior Management, they are aware of the importance of the VE review. The Senior Management has concluded that valuable project cost savings have resulted by the independent technical review.
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The team does not spend a lot of time developing life cycle costs. Question 24 Comments PART 3 Does your agency utilize the SAVE International Value Methodology Standard (October 1998)
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It has helped to trouble shoot areas before detailed design, add more value and save dollars. Value Engineering is a vehicle to welcome new ideas and innovations.
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Agency Category 18 KY US DOT 30 NH US DOT 32 NM US DOT 35 ND US DOT 39 PA US DOT 61 ON CDN DOT 64 SK CDN DOT 67 Ottawa CDN CITY 69 Fed Lands FHWA Question 26 Which VE and related tools are typically utilized during a VE study for your agency?
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Question 27 Looking at introduction of Value Engineering. Presently budget planning drives the work down in the field.
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The VE Study Team. We use 5 day VE studies.
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Agency Category 3 AZ US DOT 5 CA US DOT 10 FL US DOT 29 NV US DOT 30 NH US DOT 33 NY US DOT 56 NB CDN DOT 64 SK CDN DOT 69 Fed Lands FHWA Travel delays and collision/crash/societal benefits are normally investigated during the shortlisting of alternates, costs may or may not be computed. PART 3 Looking at introduction.
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Champion emerges Group consensus through discussion Looking at introduction. Typically, focus is on issues/items that have the potential to provide the same function/outcome at a lower life cycle cost.
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These criteria are also weighed when the team details the advantages/disadvantages of the recommendation. Comments Do not know Flexibility for the future Project costs User costs/benefits We do not have workshops.
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Comments PART 3 Question 32 APPLICATION Does your agency use VE to develop or update technical standards, specifications, and/or guidelines? Not Necessarily Value Engineering but Life Cycle Costing is/was used in our Standards and Policy development.
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A Value Engineering Session can be utilized on any project upon request. However, the primary driving factor to selecting a project to be VE'd is the $20 million and higher threshold.
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. The study summary report shall be organized in sections by areas of focus consistent with the value engineering job We use VE Workbook, Publication No.
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Ref. Agency Category 56 NB CDN DOT 64 SK CDN DOT 67 Ottawa CDN CITY 69 Fed Lands FHWA Comments 1.
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An informal Inplementation Committee is established between the State Project Review Engineer and the Design Project Manager. Documentation and consensus is required for implementation.
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Ref. Agency Category 36 OH US DOT 38 OR US DOT 39 PA US DOT 41 RI US DOT 42 SC US DOT 43 SD US DOT 44 TN US DOT 45 TX US DOT 48 VA US DOT 49 WA US DOT 51 WI US DOT 61 ON CDN DOT 64 SK CDN DOT 67 Ottawa CDN CITY 68 New York US CITY 69 Fed Lands FHWA The CFLHD Project Manager and Design Consultant assigned to the project evaluates the submitted VE ideas and determines the applicability for implementation.
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Project Manager is to report to VE Coordinator on status of VE Team recommendations. VE Coordinator checks with Project Development Team.
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We prepare an annual report for the Federal Highway Administration. Looking at introduction.
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VROI - Value Improvement = VA Study Costs Question 38 Number of projects reviewed Number of VE ideas accepted Value of avoided cost/cost savings N/A MONITORING If yes, how does your agency monitor VE program performance?
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ROI Project Savings Study Costs
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Agency Category 3 AZ US DOT 10 FL US DOT 16 IA US DOT 17 KS US DOT 23 MI US DOT 30 NH US DOT 32 NM US DOT 34 NC US DOT 36 OH US DOT 39 PA US DOT 52 WY US DOT 64 SK CDN DOT 69 Fed Lands FHWA PART 5 Looking at introduction. FHWA and AASHTO Value Engineering Technical Committee Members.
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The fact that the Value Engineering methodology has proven to be an effective design tool for the purpose of increasing the value of a project, including avoiding unnecessary expenses. 10 FL US DOT Organization, institutional knowledge in our districts - all districts are aware of VE, including conducting VE studies and the VE program.
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We focus on improving value and scoping projects rather than cost cutting. We do VE studies even though there is no law requiring this.
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Another challenge is the misconception that VE is applied to save money. More work needs to be done to promote Value Engineering as a design tool that increases the value of the project rather than a tool to only reduce the cost of a project.
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Agency Category 54 BC CDN DOT 56 NB CDN DOT 61 ON CDN DOT 64 SK CDN DOT 68 New York US CITY 69 Fed Lands FHWA The statutory cost threshold of $1 million imposed by OMB is considered too low to justify the study investment. The threshold was established in 1993 and needs to be brought in line with current construction costs.
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Over time most innovation becomes included in the overall contracts unless it was very site specific. It may be time to review our Value Engineering program.
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None. 61 ON CDN DOT Contractors are submitting Value Engineering proposals that do not fit within the parameters of what a value engineering proposal is.
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In our view, part of the problem is that the Value Engineering community has been recognized and remembered for its potential savings on construction projects or products. Savings or cost avoidance is simply very attractive, but we well know that this is a byproduct of Value Engineering.
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. Only by understanding well the intent of the methodology as a design tool, is that the expectations of Value Engineering can be redirected.
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