130.3 Post-Award Value Engineering (PAVE)
Post-award value engineering (PAVE) workshops are conducted during the construction phase of a project. The purpose of the PAVE workshop is to increase the number of approved value engineering change proposals (VECP) and practical design value engineering change proposals (PDVECP), improve contractor partnering, streamline VECP/PDVECP approval process, and improve core team constructability knowledge.
130.3.1 Project Selection and PAVE Workplan
There is no federal requirement for identifying projects for PAVE workshops. Each district should identify projects for PAVE workshops early in the scoping and design processes based on the following criteria:
- Projects estimated over $20 Million
- Interchange projects
- Projects with stage construction
- Projects with potential construction risks
- Major bridge projects
- Projects identified by the District Engineer or Chief Engineer
- PAVEs are not conducted on Design/Build projects
When a project has been identified for a PAVE workshop, the job special provision Post-Award Value Engineering Change Proposal Workshop (JSP-16-01) shall be included in the contract documents.
If the JSP is not included in the contract, a project may still be identified by District leadership, Division Engineers, or Chief Engineer for a PAVE workshop after the contract has been let. The Policy and Innovations Engineer will work with District staff and the contractor to select dates and locations for the PAVE.
130.3.2 PAVE Study Process
Typically a one day workshop is held 1-3 weeks after the contract is awarded but before the contract notice to proceed. The PAVE facilitator (Policy and Innovations Engineer or consultant), District Design and Construction staff, core team members, and other project development experts should participate in the PAVE workshop. Design consultants may also be invited to the PAVE workshop.
The PAVE workshop report and recommendations are conveyed to the district and Central Office staff in a timely manner after the workshop to ensure adequate time for design changes. The district and/or contractor should respond to the PAVE workshop recommendations within 15 business days. All routine internal costs incurred by MoDOT to review and implement approved VECPs and PDVECPs will be at the Commission’s expense. Major redesign costs, and design/review costs of any amount charged by a consultant to the Commission, will be deducted from the gross savings. Approved and rejected VECPs and PDVECPs are tracked by Construction and Materials Division.