Governor Mikie Sherrill • Lt. Governor Dr. Dale G. Caldwell

Department of Transportation

Value Engineering

Summary
Value Engineering is a systematic process of review and analysis of a project, during Concept Development and the Design phases, by a multi-discipline team of Subject Matter Experts not previously involved in the project.

Objectives
The objective of a Value Engineering study is to identify value opportunities and recommend alternatives aimed at improving the quality of the project, reduce the schedule duration of the project, and to lowering the overall cost while maintaining public safety, and efficiently meeting the original function or “purpose and need” of the project.

To conform to Title 23- Code of Federal Regulations, part 627, a Value Engineering study must be conducted on projects that meet the following criteria:

  1. Each project located on the National Highway System (NHS) (as specified in 23 U.S.C. 103) with an estimated total project cost of $50 million or more that utilizes Federal-aid highway funding
  2. Each bridge project located on the NHS with an estimated total project cost of $40 million or more that utilizes Federal-aid highway funding
  3. Any major project (as defined in 23 U.S.C. 106(h)), located on or off of the NHS, that utilizes Federal-aid highway funding in any contract or phase comprising the major project
  4. Any project where a VE analysis has not been conducted and a change is made to the project's scope or design between the final design and the construction letting which results in an increase in the project's total cost exceeding the thresholds identified in paragraphs (b)(1), (2) or (3) of this section
  5. Any other project FHWA determines to be appropriate that utilizes Federal-aid highway program funding.

Guidance Documents
Detailed Value Engineering information is provided within the NJDOT Value Engineering Process Guideline (pdf 1.2m) and the Value Engineering Process Flow Chart (pdf 238k). The purpose of the NJDOT Value Engineering Process documents are to provide guidance to NJDOT employees and NJDOT’s consultant designers in the methodology that the Value Engineering Unit utilizes to conduct Value Engineering studies.

Note: Once a project enters the Construction Phase, a contractor may opt to perform a Value Engineering Change Proposal (VECP). A Value Engineering Change Proposal (VECP) is defined as a construction contract change proposal submitted by the construction contractor under the provisions set forth 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. Refer to the Standard Specifications.

Last updated date: November 27, 2019 10:08 AM