Project. A portion of a highway that a State proposes to construct, reconstruct, or improve as described in the preliminary design report or applicable environmental document. A project may consist of several contracts or phases over several years.
Value engineering. The systematic application of recognized techniques by a multi-disciplined team to identify the function of a product or service, establish a worth for that function, generate alternatives through the use of creative thinking, and provide the needed functions to accomplish the original purpose of the project, reliably, and at the lowest life-cycle cost without sacrificing safety, necessary quality, and environmental attributes of the project.
Effective Date Note:
At 77 FR 15254, March 15, 2012, part 627 was revised, effective Apr. 16, 2012. For the convenience of the user, the revised text is set forth as follows:
PART 627—VALUE ENGINEERING
The following terms used in this part are defined as follows:
Bridge project. A bridge project shall include any project where the primary purpose is to construct, reconstruct, rehabilitate, resurface, or restore a bridge.
Final design. Final design has the same meaning as defined in 23 CFR 636.103
Project. A portion of a highway that a STA or public authority proposes to construct, reconstruct, or improve as described in the preliminary design report or applicable environmental document. A project is defined as the logical termini in the environmental document and may consist of several contracts, or phases of a project or contract, which are implemented over several years.
Total project costs. The costs of all phases of a project including environment, design, right-of-way, utilities and construction.
Value Engineering (VE) analysis. The systematic process of reviewing and assessing a project by a multidisciplinary team not directly involved in the planning and development phases of a specific project that follows the VE Job Plan and is conducted to provide recommendations for:
Providing the needed functions, considering community and environmental commitments, safety, reliability, efficiency, and overall life-cycle cost (as defined in
23 U.S.C. 106(f)(2)
Improving the value and quality of the project; and
Reducing the time to develop and deliver the project.
Value Engineering (VE) Job Plan. A systematic and structured action plan for conducting and documenting the results of the VE analysis. While each VE analysis shall address each phase in the VE Job Plan, the level of analysis conducted and effort expended for each phase should be scaled to meet the needs of each individual project. The VE Job Plan shall include and document the following seven phases:
Gather project information including project commitments and constraints.
Function Analysis Phase:
Analyze the project to understand the required functions.
Generate ideas on ways to accomplish the required functions which improve the project's performance, enhance its quality, and lower project costs.
Evaluate and select feasible ideas for development.
Develop the selected alternatives into fully supported recommendations.
Present the VE recommendation to the project stakeholders.
Evaluate, resolve, document and implement all approved recommendations.
Value Engineering Change Proposal (VECP).
A construction contract change proposal submitted by the construction contractor based on a VECP provision in the contract. These proposals may improve the project's performance, value and/or quality, lower construction costs, or shorten the delivery time, while considering their impacts on the project's overall life-cycle cost and other applicable factors.