Montana Department of Transportation
PO Box 201001
Helena, MT 59620-1001
Construction Memorandum
To:
District Construction Engineers
From:
Paul Jagoda, P.E.
Construction Engineering Services Engineer
Date:
September 17, 2007
Subject: Value Engineering Proposals
This Construction Memo provides a uniform process for the submission and processing
of Value Engineering Proposals in accordance with Standard Specification 104.08.
For assistance or questions related to Value Engineering Proposals, please contact the
Construction Engineering Services Engineer or your District CES Reviewer.
PJ/fb
CC:
EPMs
District Office Engineers CES Bureau
Lisa Durbin, PE
Kevin Christensen, PE FHWA Operations Engineers
Loran Frazier, PE Traci Steen
District Administrators Bureau Chiefs
DESSs
CSB_104_08(VE_Proposals9-17-07)
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CSB_104_08(VE_Proposals9-17-07)
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GUIDANCE FOR EVALUATING VALUE ENGINEERING PROPOSALS
A Value Engineering (VE) Proposal is typically an improved construction technique, an
alternative material, or other innovation originated by the Contractor that would be
expected to result in a cost savings to the project. The function and quality of the project
must be maintained or enhanced. Net cost savings is shared between the Contractor
and the Department.
The Construction Engineering Services (CES) Bureau will be responsible for processing
Value Engineering (VE) proposals, according to Standard Specification 104.08, and for
coordinating any reviews and investigations performed by other involved Divisions and
Bureaus. These Divisions and Bureaus will provide technical advice and
recommendations in their functional area of expertise.
VE proposals should be evaluated in a timely manner and every reasonable effort
should be made to complete the response within the time frame given