104.13 Construction Inspection Guidance for Sec 104

Additional Information

Construction Value Engineering Change Proposal (C-104)

Value Engineering (VE) is a systematic, organized approach to obtain the optimum value for each dollar spent. It is the application of recognized techniques to identify the function of a product or service, establish the value of that function, and then to provide that function at the lowest actual cost. Ideas that merely cost less initially, but add to the future costs of maintenance and operations, are usually unacceptable.

Guidance for Sec 104.6.

Specification Provision. VE is a provision of MoDOT's Standard Specification Sec 104.6 that provides contractors with a monetary incentive to participate in these cost saving techniques. MoDOT personnel should be knowledgeable of this provision and encourage contractor participation. All VE submissions must be processed as quickly as possible in order to prevent construction delays and provide the greatest savings. The following steps are needed for evaluation and/or approval of a contractor's VE proposals and changes:

Figure 104.13 Construction VE Flow Chart

Concept Proposal. The contractor may submit a concept proposal (Form C-104) to the resident engineer with copies to the district office, Construction & Materials and the Design Support Engineer in the Engineering Policy Group. This is an optional approach that will allow the contractor to determine whether the concept is acceptable before committing a large design effort to developing specifics of the proposal. This concept proposal should be evaluated by the resident engineer and forwarded to the district engineer with recommendations within two days of receipt.

The district will review the concept proposal and submit to Construction & Materials Division with recommendations within five days of receipt. Since time is of the essence, division and Engineering Policy Group evaluations are to be completed and the contractor notified in writing within 10 days of the original submission. This notification will be made by the resident engineer.

The resident engineer should coordinate all arrangements for review of the actual change if the concept proposal is approved and should contact the contractor to determine when the change will be submitted. If a VE team is required, the Engineering Policy Group will assist with the scheduling and review.

Final Proposal. When the contractor submits a proposed change, it must include all items required by Standard Specification Sec 104.6. It should be submitted to the resident engineer with copies to the district, Construction & Materials and the Engineering Policy Group. Permission may be granted for the contractor to present the proposed change orally, but all the data needed for evaluation must be submitted in writing. Changes on projects that require FHWA approval will be coordinated directly between Construction & Materials and FHWA.

The resident engineer will evaluate the proposed change and recommend rejection or approval to the district engineer. All recommendations will be sent to Construction & Materials for concurrence or rejection in consultation with the Engineering Policy Group within seven days.

The resident engineer will notify the contractor within the proposed change deadline and will prepare and submit the necessary change orders. If the proposed change is rejected, the resident engineer's notification to the contractor must include the reasons for rejection.

Acceptable construction VE changes will be utilized in the design of true applicable projects and applicable design standards. It will be the responsibility of the Engineering Policy Group to initiate applicable specifications and design standard changes.

Payment will be in accordance with Sec 104.6.

104.13.1 Guidance about Alterations in the Contract

Standard Specification Sec 104 establishes conditions under which alterations in the contract may be made. It also establishes the contractor's and the department's obligations with respect to maintenance of traffic.

Be alert to special problems involved in traffic handling. Make recommendations to the district engineer when changes appear to be justified.

The engineer mentioned in Sec. 104.7 shall be the district engineer. All requests under this section shall be referred to the district engineer with the resident engineer's recommendations.

The contractor may submit a concept proposal (Form C-104) to the resident engineer with copies to the district office

104.13.2 Use of Materials Found on the Right of Way

Standard Specification Sec 104.9 permits the contractor, under certain conditions, to crush rock encountered during grading with the resulting crushed material to be used as aggregate for the project.

The district may normally grant written approval to the contractor without consultation with Construction & Materials. A copy of the approval letter should be sent to Construction & Materials for informational purposes. If unusual conditions or circumstances are involved, or if the contractor proposes to produce crushed material for ultimate use off the project, the district's recommendation should be sent to Construction & Materials for review before granting approval.

The following provisions should be considered in granting approval for requests to crush material:

a. The shape and extent of removal and the condition in which rock slopes are to be left if approval is given to remove rock outside normal slope lines.

b. Replacement material generally is to come from outside right of way limits and out of sight of the roadway if at all possible. If the areas can be seen by traffic on the roadway, they must be left in a neat, workmanlike and pleasing condition so that no future beautification work will be necessary to hide an unsightly condition.

c. Excess excavation material may also be used for replacement purposes.

d. Back slopes should be flattened to obtain replacement material only if resulting slopes will serve the roadway as well as plan slopes. Additional seeding, fertilizing and mulching which results from use of flattened slopes must be at the contractor's expense.

e. There should be no additional payment for overhaul as a result of the contractor's proposal.

f. The contractor should furnish satisfactory lease agreements to cover any area outside the right of way limits that is proposed for securing replacement material.

g. All work under the proposal is to be done at no additional cost to the state or federal government.