Common use of Value Engineering Proposals Clause in Contracts

Value Engineering Proposals. The Contractor may submit to the Engineer written Value Engineering Contractor Proposals (VECP) for modifying the plans, Specifications, or other Contract requirements for the purpose of reducing the total cost and/or Contract time without reducing the design capacity or quality of the finished product. If the County accepts the VECP, the County and the Contractor will equally divide the net savings or Contract time, or both. When an accepted VECP includes Contract time savings, one-half of such time savings shall be used to reduce the Contract time and the remaining one-half of such time savings shall be used exclusively by the Contractor as extra time. The Contractor shall identify in the SOR, a VECP contractor float activity for each accepted VECP that includes Contract time savings. The VECP extra time may be used by the Contractor to mitigate its delays on the project. Each VECP shall result in a net savings over the Contract cost or Contract time, or both, without impairing essential functions and characteristics of the item(s) or of any other part of the project, including, but not limited to, service life, reliability, economy of operation, ease of maintenance, aesthetics, and safety. At least the following information shall be submitted with each VECP: 1. Statement that the proposal is submitted as a VECP. 2. Statement concerning the basis for the VECP benefits to the County and an itemization of the pay items and requirements affected by the VECP. 3. Detailed estimate of the cost or Contract time, or both, under the existing Contract and under the VECP. 4. Proposed specifications and recommendations as to the manner in which the VECP changes are to be accomplished. 5. Statement as to the time by which a Contract change order adopting the VECP must be issued so as to obtain the maximum cost-effectiveness. The County will process the VECP in the same manner as prescribed for any other pro- posal that would necessitate issuance of a change order. The County may accept a VECP in whole or part by issuing a change order that will identify the VECP on which it is based. The County will not be liable to the Contractor for failure to accept or act on any VECP submitted pursuant to these requirements or for delays in the work attributable to any VECP. Until a VECP is put into effect by a change order, the Contractor shall remain obligated to the terms and conditions of the existing Contract. If an executed change order has not been issued by the date on which the Contractor’s proposal specifies that a decision should be made or such other date as the Contractor may subsequently have specified in writing, the VECP shall be deemed rejected. The change order effecting the necessary modification of the Contract will establish the net savings agreed on, and provide for adjustment of the Contract prices or Contract time, or both. The Contractor shall absorb all costs incurred in preparing a VECP. Costs for reviewing and administering a VECP will be borne by the County. The County may include in the agreement any conditions it deems appropriate for consideration, approval, and implementation of the VECP. The Contractor’s 50 percent share of the net savings or Contract time, or both, shall constitute full compensation to him for effecting all changes pursuant to the VECP change order. Unless specifically provided for in the change order authorizing the VECP, acceptance of the VECP and performance of the work thereunder will not change the Contract time limit. The County may adopt a VECP for general use in contracts the County administers if it determines that the VECP is suitable for application to other contracts. VECPs identical with or similar to previously submitted VECPs will be eligible for consideration and compensation under these provisions if the County has not previously adopted the VECPs for general application to other contracts the County administers. When a VECP is adopted for general use, compensation pursuant to these requirements will be applied only to those awarded contracts for which the VECP was submitted prior to the date of adoption of the VECP. Proposed changes in the basic design of a bridge or pavement type or those changes that require different right of way limits will not normally be considered an acceptable VECP. If a VECP is based on or is similar to a change in the plans, Specifications, or Special Provisions the County has adopted prior to submission of the VECP, the Engineer will not accept the VECP. The Engineer will be the sole judge of the acceptability of a VECP. The requirements herein apply to each VECP initiated, developed, and identified as such by the Contractor at the time of its submission to the Engineer. However, nothing herein shall be construed as requiring the Engineer to approve a VECP. Subject to the provisions herein, the County or any other public agency shall have the right to use all or part of an accepted VECP without obligation or compensation of any kind to the Contractor. If the County accepts a VECP, Section 104.02(b) herein, which pertains to the adjustment of Contract unit prices attributable to alterations of Contract quantities, will not apply to the items adjusted or deleted as a result of putting the VECP into effect by a change order.

Value Engineering Proposals. The Contractor Design-Builder may submit to the Engineer Department written Value Engineering Contractor Proposals (VECP) for modifying the plans, Specifications, or other requirements of Contract requirements Documents for the purpose of reducing the total cost and/or Contract time Price or Contract Times without reducing the design capacity or quality of the finished product. If the County Department accepts the VECP, the County Department and the Contractor Design-Builder will equally divide the net savings or Contract timeTime, or both. When an accepted VECP includes Contract time savings, one-half of such time savings shall be used to reduce the Contract time and the remaining one-half of such time savings shall be used exclusively by the Contractor as extra time. The Contractor shall identify in the SOR, a VECP contractor float activity for each accepted VECP that includes Contract time savings. The VECP extra time may be used by the Contractor to mitigate its delays on the project. Each VECP shall result in a net savings over the Contract cost Price or Contract timeTimes, or both, both without impairing essential functions and characteristics of the item(s) or of any other part of the projectProject, including, but not limited to, service life, reliability, economy of operation, ease of maintenance, aesthetics, and safety. At least the following information shall be submitted with each VECP: 1. : • Statement that the proposal is submitted as a VECP. 2. VECP • Statement concerning the basis for the VECP benefits to the County Department and an itemization of the pay items and requirements affected by the VECP. 3. VECP • Detailed estimate of the cost or Contract time, or both, under the existing Contract and under the VECP. 4. VECP • Proposed specifications and recommendations as to the manner in which the VECP changes are to be accomplished. 5. accomplished • Statement as to the time by which a Contract change order contract Change Order adopting the VECP must be issued so as to obtain the maximum cost-effectiveness. effectiveness The County Department will process the VECP in the same manner as prescribed for any other pro- posal proposal that would necessitate issuance of a change orderChange Order. The County Department may accept a VECP in whole or part by issuing a change order Change Order that will identify the VECP on which it is based. The County Department will not be liable to the Contractor Design-Builder for failure to accept or act on any VECP submitted pursuant to these requirements or for delays in the work Work attributable to any VECP. Until a VECP is put into effect by a change orderChange Order, the Contractor Design-Builder shall remain obligated to the terms and conditions of the existing Contract. If an executed change order Change Order has not been issued by the date on which the ContractorDesign-Builder’s proposal specifies that a decision should be made or such other date as the Contractor Design-Builder may subsequently have specified in writing, the VECP shall be deemed rejected. The change order Change Order effecting the necessary modification of the Contract will establish the net savings agreed on, and provide for adjustment of the Contract prices Price, or Contract timeTime, or both. The Contractor Design-Builder shall absorb all costs incurred in preparing a VECP. Costs for reviewing and administering a VECP will be borne by the CountyDepartment. The County Department may include in the agreement any conditions it deems appropriate for consideration, approval, and implementation of the VECP. The ContractorDesign-Builder’s 50 fifty percent (50%) share of the net savings or Contract time, time or both, both shall constitute full compensation to him for effecting all changes pursuant to the VECP change orderChange Order. Unless specifically provided for in the change order Change Order authorizing the VECP, acceptance of the VECP and performance of the work thereunder will not change the Contract time limitTime. The County Department may adopt a VECP for general use in contracts the County Department administers if it determines that the VECP is suitable for application to other contracts. VECPs identical with or similar to previously submitted VECPs will be eligible for consideration and compensation under these provisions if the County Department has not previously adopted the VECPs for general application to other contracts administered by the County administersDepartment. When a VECP is adopted for general use, compensation pursuant to these requirements will be applied only to those awarded contracts for which the VECP was submitted prior to the date of adoption of the VECP. Proposed changes in the basic design of a bridge Bridge or pavement type or those changes that require different right of way limits will not normally be considered an acceptable VECP. If a VECP is based on or is similar to a change in the plans, Specifications, or Special Provisions the County has adopted Contract Documents prior to submission of the VECP, the Engineer Department will not accept the VECP. The Engineer Department will be the sole judge of the acceptability of a VECP. The requirements herein apply to each VECP initiated, developed, and identified as such by the Contractor Design-Builder at the time of its submission to the EngineerDepartment. However, nothing herein shall be construed as requiring the Engineer Department to approve a VECP. Subject to the provisions herein, the County Department or any other public agency shall have the right to use all or part of an accepted VECP without obligation or compensation of any kind to the Contractor. If the County accepts a VECP, Section 104.02(b) herein, which pertains to the adjustment of Contract unit prices attributable to alterations of Contract quantities, will not apply to the items adjusted or deleted as a result of putting the VECP into effect by a change orderDesign-Builder.