130.2 Design Phase Value Engineering

Design phase VE studies can be conducted during any phase of the project design process but prior to PS&E submittal. These studies can also be traditional or non-traditional, depending on the project. District should work with the Policy and Innovations Engineer to determine their VE needs.

130.2.1 Design Phase Project Selection and VE Workplan

Each year, a value engineering work plan for the federally required Value Engineering Studies is completed after approval of the MoDOT highway right of way and construction program.

The federal requirements are:

• Projects on the National Highway System (NHS) receiving federal assistance with an estimated total cost of $50,000,000 or more.
• Bridge project on the NHS receiving federal assistance with an estimated total cost of $40,000,000 or more. (A bridge project is defined as any project where the primary purpose is to construct, reconstruct, rehabilitate, resurface or restore a bridge).
• Any other project designated by the Secretary of Transportation.
• Design/Build projects do not require a VE study.

Please note, total cost is defined as the cost of all phases of a project including environmental, design, right of way, utilities and construction.

Projects meeting the minimum federal requirement are identified and submitted to FHWA for their concurrence in the form of a VE work plan. The VE work plan will identify all of the projects requiring a study and the anticipated date of those studies (if known). In addition, the work plan will identify each of projects for which a VE study is required for which value analysis has already been conducted along with the date of that study. The DVECs will assist the Policy and Innovations Engineer in identifying the appropriate projects.

A district value engineering workplan will be created by each DVEC to identify the district’s projects which will be the priority on which to conduct a VE effort. The DVEC may use the VE project selection criteria to aid in determining which projects have the greatest potential for study. The DVEC sends the district’s annual study schedule to the Policy and Innovations Engineer for retention and to supplement the MoDOT VE work plan.

Divisions or districts may also request VE studies at any point throughout the year. These design phase VE studies are generally done at the district level. VE studies on procedures, processes, specifications, standard plans and details of statewide impact are generally done at the division level.

The VE study report and recommendations are conveyed to the appropriate staff upon completion of the study. Affected districts and divisions will receive copies of the study as soon as practical after its completion. The DVEC works with project managers to evaluate the recommendations of the VE team. The project managers submit responses to the study recommendations to the Policy and Innovations Engineer.

130.2.2 Design Phase VE Study Process

Related Information Video

Life Cycle of a Highway

The formal VE process entails a systematic process of review and analysis of a project during its design/project development phase, resulting in recommendations to improve value while addressing the project’s purpose and need. The study consists of the following, which is also known as the job plan:

• Pre-Study Phase: The Policy and Innovations Engineer works with the project manager and DVEC to set up the study (see the Project Manager's Guide for additional information).
• Study Phase: A multidisciplinary team not directly involved in the planning or design of the project, conducts the VE review by: investigating and analyzing the planning, design, and constructability of a project.

• Informative Phase - identifying project functions and costs and worth;
• Creative Phase - creatively speculating on alternate ways to perform the various functions;
• Evaluation Phase - evaluating the best and/or least life-cycle alternatives;
• Development Phase - developing acceptable alternatives into supported recommendations; and
• Presentation Phase - presenting the team’s recommendations to the appropriate staff.

• Post Study Phase (or Resolution Phase): Approval and implementation of VE recommendations and finalizing the VE Report. The VE Report should consist of:

• The names and contact information for the participants
• A description of the project
• A summary of the functional determination or consideration given for the project.
• A listing of the generated alternative solutions
• The traffic impacts of each alternative
• The anticipated savings costs associated with each alternative
• A copy of the district’s or division’s response indicating accepted alternatives and anticipated savings.
• Any additional pertinent information associated with the study.

In addition, required VE studies for bridge projects should include the following:

• A review of the bridge substructure and superstructure requirements with consideration for alternative construction materials.
• An engineering and economic assessment with consideration of acceptable designs.
• A life-cycle cost analysis and consideration of construction duration.

130.2.3 Design Phase VE Study Types

There are several types of studies:

130.2.3.1 Traditional VE Studies

A traditional study is typically used on required studies, however as each project is unique, each phase of the study can be scaled to meet the needs of the individual project.

• Concept Stage VE (CSVE). The focus is on coming up with many alternates, the goal being to choose the best alternate to accomplish project P&N. It works best for the CSVE to be conducted prior to signing DEIS or before conceptual submittal if a CE. (3- to 5-day study). A full VE report is prepared.
• Preliminary Stage VE (PSVE). The traditional VE study conducted prior to preliminary plan submittal. The focus here is usually on improving the existing design, often, by this stage, the footprint is usually set and it may be too late for major functional enhancements. (3- to 5-day study). A full VE report is prepared.
• Final Design Stage VE (FDVE). A traditional VE study conducted near the end of the design process. The focus here is on improving the design, providing flexibility and considering alternatives that meet the purpose and need. This is likely the least effective phase to conduct the study as most of design features will have been committed to and significant changes may be required to implement new alternatives, however project improvement is still possible. A full VE report is prepared.

130.2.3.2 Non-Traditional Studies

A non-traditional study is typically used on projects that do not formally require a VE study. Although these are not the formal, traditional study, there should still be an emphasis on the Job Plan and giving consideration to each phase of the process, even if some of the phases are truncated or eliminated as appropriate.

• Compressed Value Engineering Study. An abbreviated, yet thorough, analysis which follows the standard VE Job Plan but is conducted in a compressed time frame using techniques designed to reduce the required time frame to fully consider the project and alternatives. It may take anywhere from 4 hours to 3 days and is commensurate with the complexity of the project. The study may be conducted at any stage from conceptual to final plans.

• Use technology to maximize time for functional analysis and solution development.
• May use a Pre-Develop functional analysis, which is expanded in study to meet any unique project features.
• After ranking, the alternative solutions are developed just far enough to validate and generate costs. Additional design effort necessary to address acceptance and implementation decisions questions or concerns and the full design is accomplished by the project design staff.

• Alternative Value Analysis (AVA). An abbreviated, yet thorough, analysis conducted quickly (anywhere from 2 hours to 3 days, commensurate with the complexity of the project) at any stage from conceptual to final plans, which is led by the PM, the Design Liaison Engineer or the DVEC. An abbreviated VE report is prepared. The report should contain at a minimum, the participants, all identified alternatives, the accepted alternatives and an estimate of any cost savings associated with the alternatives.

• Team composition- Consists of Central Office and district staff. Teams may be small, only 3 to 5 persons, or large, mirroring project core teams.
• May follow either the traditional or compressed Value Engineering study process. Findings may be reported in a simple letter format.
• A pre-established workbook is available for a district-led Accelerated Value Analysis – Practical Review. This workbook is intended to lead the review team through the process by identifying typical opportunities for alternative approaches on routine work elements.

• Combined Project Type Value Studies.

• Multiple projects of the similar scope and size are grouped together for the study. A composite analysis is conducted with unique features of each project discussed and considered accordingly, however the focus should remain on the individual project traits and not on the program guidelines.
• The compressed study process may also be used.

• Constructability Review. This type of study concentrates on constructability, traffic management, "bidability", innovative contracting, etc. It can be done at any stage from conceptual to final plans. The study length can be anywhere from 2 hours to 5 days.

• It generally consists of or coincides with a meeting of MoDOT personnel and interested contractors to discuss their perspective on construction aspects associated with the draft plans.
• If a meeting with the industry is conducted during this process, the preliminary plans should be posted with the meeting notice at least one week prior to provide opportunity to schedule attendance and review the proposed plans.
• The meeting should not be mandatory, to avoid unnecessary impacts to the bidding environment for the project.

• Value Focused Risk Assessment. Risk assessments approached from the perspective of identifying opportunities to improve the value of the project are an acceptable form of value analysis. After determining the functions of the project, the project risks are considered and documented in accordance with EPG 149.5 Initial Risk Assessment. When developing strategies to avoid, minimize or mitigate the project risks, consideration should be given to alternative approaches which will meet the functions of the project while decreasing or eliminating areas of risk. A risk assessment report should be generated and properly documented.
• Programmatic Value Studies. This programmatic study type is used when studying entire programs for consideration of process and program value improvement. The functional perspective and associated alternatives are considered in the development or review of the guidelines in order to have projects within the program that are of the greatest value. The emphasis is placed on the improving the guidance that will be subsequently used for project development. The high level study should focus on the function of the program more than the individual projects. The study could be conducted in a traditional manner or based upon the compressed study type. The study length will likely be less than 1 day.
• Process Value Analysis. This type of study concentrates on process improvement. The goal is to take an innovative and practical look at any process. Subjects could include anything, for example, maintenance operations, construction standards or purchasing specifications. The study length can be 2 to 5 days.

Because of the value of minimizing unnecessary design work there is a benefit to conducting Concept Stage VE studies in order to develop multiple alternates when trying to identify the right solution. However this is not always possible nor is it always the right time for a specific project. The later staged VE study or the non-traditional studies can often be the correct approach to help build consensus through collaboration and to ensure that the most practical solution is found. The later stage VE studies can also help reduce last minute scrutiny of the project. Project managers can use VE as a proven problem-solving system and can realize secondary benefits including better project scope definition and increased value by optimizing the ratio of project performance and project cost.

130.2.4 Documenting Value Analyses in SIMS

In order to properly track all value analysis efforts, each study, review or other VE undertaking must be recorded in the Bike/Ped VE Project Data Entry Area of SIMS.

130.2.4.1 Value Analyses Numbering Convention

A numbering convention for tracking both Central Office and District Value Analysis efforts is provided to aid in tracking all VE efforts. Please note in this area, a VE Number is automatically entered by SIMS upon a user entering data. This is not an officially VE number but is instead an individual number key used by the SIMS database. It does not replace the District or Central Office generated numbering convention and should be ignored for these purposes.

130.2.4.1.1 District Value Analysis Efforts

The DVEC shall ensure that each value analysis effort performed by the district is properly documented under the appropriate VE number. The district value engineering number will consist of the District Designation followed by the year followed by the study number to three digits, starting with one. For example, Central District's first district led value engineering effort of 2012 would be numbered CD 2012-001.

130.2.4.1.2 Central Office Value Analysis Efforts

The Policy and Innovations Engineer shall ensure that each value analysis effort performed by the Central Office is properly documented under the appropriate VE number. The Central Office value engineering number will consist of the year followed by the study number to three digits, starting with one. For example, the first Central Office-led value engineering effort of 2012 would be numbered VE-2012-001.