Anything above the code minimum, such as wall STC ratings, flooring finishes, and light fixtures, should be considered potential for a value engineering opportunity.
Does it affect other trades with cost impacts – What is the "downstream" effect of making the change? Will other trades be affected if the change is accepted by Ownership?
Use the value from the sub we are carrying. All subs will not have the same credit or carry the same system in their base bid.
Request bidders provide value engineering/alternates on your scope sheets. It is always easier to get these breakouts from bidders during the original bid submission.
If possible, request a sketch or drawing from the bidder identifying the proposed changes. A sketch can make it far easier to identify the change to Ownership or the Design Team.
As a rule of thumb, avoid proposing value engineering / alternate changes that affect the Life Safety Systems in a building. This can avoid conflicts with Ownership in the future in the event the proposed change does not work out.
Update the Estimate Detail, Q&A, and VE log to match the Owner's decision. Add a new row directly under the most applicable CSI Division and provide a description of what the deduct or add represents. In the case that the VE/Alternate is a multi-trade item, open up a new budget column and input the information there.
Be sure the qualifications below are included in the Q&A to protect KAST.
The Contractor is not acting in the capacity of a design professional, engineer, architect, or designer through the suggestion of construction materials, methods, designs, or approaches to the Work on the Project, including, without limitation, cost reduction alternates. Any recommendations proposed by the Contractor in connection with the Project provided at any time prior to or subsequent to the execution of the Agreement, including cost reduction alternates or other recommendations made by the Contractor, are merely suggestions based on the Contractor's experience on different projects which may or may not be similar to or appropriate for the Project. It is the responsibility of the Owner and the Owner's design consultants to verify that the suggestions made by the Contractor are suitable for the design of the Project. The Owner acknowledges and understands that the Contractor has not verified from an engineering or architectural standpoint to confirm that any such suggestion will be performed in accordance with the Owner's or design professional's intent. By accepting any of the suggested alternates made by the Contractor, the Owner, and its design professionals acknowledge that they have thoroughly reviewed the design and engineering impact on the Project of all of the Contractor's suggestions and accept entire liability directly or indirectly associated with any use of any ideas resulting or derived from Contractor's suggestions.
Clearly identify if a proposed value engineering alternate voids another alternate; this happens quite often in the finishes trades. For example, there may be two or more proposed alternates for flooring, and Ownership can only select one.
Qualify all VE as a deductive allowance until the plans are revised and re-priced by the subcontractor to confirm that the revised plans are in alignment with the original VE credit.
Get cut sheets, warranties, and samples of any VE being contemplated. This informs both the Ownership and the Project Manager.
MEP design revisions for cost savings/convenience, such as JA Croson qualification below:
All pipe sizing and routing must be according to the current plumbing code requirements, not necessarily the drawings, specifications, and isometrics. Some jurisdictions require revised drawings to be signed and sealed by the engineer of record.
