What is a value engineering proposal?
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 …
What is a value engineering change?
Value engineering change proposal (VECP) means a proposal that- (1) Requires a change to this, the instant contract, to implement; and. (2) Results in reducing the overall projected cost to the agency without impairing essential functions or characteristics;provided, that it does not involve a change-
How do you value an engineering project?
It means optimizing the elements of the project through an analysis of all factors–cost, upkeep, wear-and-tear, aesthetic value, etc. To truly provide advantageous value engineering, your construction and design team need to first understand the project as a whole and your vision and goals for the project.
What is value engineering in civil engineering?
Value engineering is a methodology used to analyze the function of the goods and services and to obtain the required functions of the user at the lowest total cost without reducing the necessary quality of performance. Many a time, Value Engineering (VE)is confused with cost cutting exercises in construction industry.
What are value engineering change proposals?
Value Engineering Change Proposal (VECP) is a proposal submitted by a contractor under the Value Engineering (VE) provisions of the Federal Acquisition Regulation (FAR) (FAR Part 48) that, through a change in the contract, would lower the project’s life-cycle cost to DoD.
What are the five phases of value engineering?
The VE Job Plan follows five key steps:
- Information Phase.
- Speculation (Creative) Phase.
- Evaluation (Analysis) Phase.
- Development Phase (Value Management Proposals)
- Presentation Phase (Report/Oral Presentation)
What is difference between value engineering and value analysis?
Value engineering relates closely to target costing as it is cost avoidance or cost reduction before production. Value analysis is cost avoidance or cost reduction of a product already in production; both adopt the same approach (details below) i.e. a complete audit of the product.
What is the purpose of value engineering in construction?
Value engineering is used to solve problems and identify and eliminate unwanted costs, while improving function and quality. The aim is to increase the value of products, satisfying the product’s performance requirements at the lowest possible cost.
What is the contract clause for value engineering?
The contract clause concerning value engineering for construction is found in FAR 52.248-3. All fixed-price construction contracts over $100,000 are to provide for value engineering unless the head of an agency has elected to exempt his agency or a particular contract from the value engineering requirements.
What does value engineering mean in federal contracting?
The program is called “value engineering,” and it is prescribed for construction contracts in section 48.202 of the Federal Acquisition Regulations. The contract clause concerning value engineering for construction is found in FAR 52.248-3.
What do you need to know about value engineering?
Understanding Value Engineering. Value engineering is the review of new or existing products during the design phase to reduce costs and increase functionality in order to increase the value of the product.
What is 48 CFR § 52.248-1 value engineering?
48 CFR § 52.248-1 – Value Engineering. 52.248-1 Value Engineering. (a) General. The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP’s) voluntarily.