Value engineering as a contract condition is getting recognition and gaining importance globally.Value engineering proposals has tangible /potential advantage/benefit to the client as well as to the contractor in terms of time and / or cost .It may lead to a dispute if the proposal is implemented without a reward or compensation despite such provision in the contract.
Hope this helps!
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1 reply by Mohamed Gador
Jan 31, 2017 11:41 PM
Mohamed Gador
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You are correct , It may lead to dispute in case the proposal implemented far less than expected to do , hence I questioned why it should be a contract condition.
Without strongly trained team it is useless.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Value Engineering is very important and can save lots of money for all parties and I totally agree with Chandrashekhar - I personally believe it is a motivational clause as all parties benefit out of it.
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1 reply by Mohamed Gador
Jan 31, 2017 11:44 PM
Mohamed Gador
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Mr. Rami greeting
Across the globe we have a very little trained VE specialists , hence right now VE to be a contract condition is a burden.
Saving Changes...
Mohamed GadorCost Control Engineer| Pulice Construction LLC.San Antonio, Tx, United States
Jan 31, 2017 6:27 AM
Replying to Chandrashekhar Thatte
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Value engineering as a contract condition is getting recognition and gaining importance globally.Value engineering proposals has tangible /potential advantage/benefit to the client as well as to the contractor in terms of time and / or cost .It may lead to a dispute if the proposal is implemented without a reward or compensation despite such provision in the contract.
Hope this helps!
You are correct , It may lead to dispute in case the proposal implemented far less than expected to do , hence I questioned why it should be a contract condition.
Without strongly trained team it is useless. Saving Changes...
Mohamed GadorCost Control Engineer| Pulice Construction LLC.San Antonio, Tx, United States
Jan 31, 2017 12:01 PM
Replying to Rami Kaibni
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Value Engineering is very important and can save lots of money for all parties and I totally agree with Chandrashekhar - I personally believe it is a motivational clause as all parties benefit out of it.
Mr. Rami greeting
Across the globe we have a very little trained VE specialists , hence right now VE to be a contract condition is a burden.
...
1 reply by Rami Kaibni
Feb 01, 2017 12:38 AM
Rami Kaibni
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Mohamed,
I've worked in many places overseas (Middle East including the Gulf Region mainly Dubai & Qatar), Shanghai and now in Canada. In all the companies Ive worked for, We've always had no isses including a section for Value Engineering within the contracts because it motivates the GC because:
1- There is incentive in case they come up with VE ideas that will actually save money.
2- It is an optional clause, not mandatory so there is no burden whatsoever.
3- Value engineering requires experience more than training.
I don't think VE is mandatory condition if any. It might be not easy to quantify and value the results from VE. This clause can be understood all parties, especially contractor, participated in the contract or project should make all the effort for the better results with less cost.
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1 reply by Chandrashekhar Thatte
Feb 01, 2017 2:13 AM
Chandrashekhar Thatte
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I am not so much familiar/knowledgeable on the application of VE in construction contracts.It is very rare and only in specific contracts the client resorts to the mandatory approach ,thereby,limits only such potential/competent and pre-qualified bidders capable of carrying out VE at Pre-bid or at post bid stage resulting in savings in Life Cycle Cost to be shared at agreed percentage.By and large, the contract clause is in the form of a VE Change Proposal (VECP) and by definition voluntary in character/nature .To the potential and capable contractors having done VE and pre-qualified on this basis ,it serves as an incentive and if accepted by the client is mutually rewarding to both the parties to the contract.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Jan 31, 2017 11:44 PM
Replying to Mohamed Gador
...
Mr. Rami greeting
Across the globe we have a very little trained VE specialists , hence right now VE to be a contract condition is a burden.
Mohamed,
I've worked in many places overseas (Middle East including the Gulf Region mainly Dubai & Qatar), Shanghai and now in Canada. In all the companies Ive worked for, We've always had no isses including a section for Value Engineering within the contracts because it motivates the GC because:
1- There is incentive in case they come up with VE ideas that will actually save money.
2- It is an optional clause, not mandatory so there is no burden whatsoever.
3- Value engineering requires experience more than training.
I don't think VE is mandatory condition if any. It might be not easy to quantify and value the results from VE. This clause can be understood all parties, especially contractor, participated in the contract or project should make all the effort for the better results with less cost.
I am not so much familiar/knowledgeable on the application of VE in construction contracts.It is very rare and only in specific contracts the client resorts to the mandatory approach ,thereby,limits only such potential/competent and pre-qualified bidders capable of carrying out VE at Pre-bid or at post bid stage resulting in savings in Life Cycle Cost to be shared at agreed percentage.By and large, the contract clause is in the form of a VE Change Proposal (VECP) and by definition voluntary in character/nature .To the potential and capable contractors having done VE and pre-qualified on this basis ,it serves as an incentive and if accepted by the client is mutually rewarding to both the parties to the contract. Saving Changes...
Mohamed GadorCost Control Engineer| Pulice Construction LLC.San Antonio, Tx, United States
Feb 01, 2017 12:38 AM
Replying to Rami Kaibni
...
Mohamed,
I've worked in many places overseas (Middle East including the Gulf Region mainly Dubai & Qatar), Shanghai and now in Canada. In all the companies Ive worked for, We've always had no isses including a section for Value Engineering within the contracts because it motivates the GC because:
1- There is incentive in case they come up with VE ideas that will actually save money.
2- It is an optional clause, not mandatory so there is no burden whatsoever.
3- Value engineering requires experience more than training.
Hope this helps.
Rami
I agree with your points especially 2 and 3 Saving Changes...
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