Value Engineeringand

Design Build

Agenda

1. Timing2. Approach3. Process4. Case Studies

Study Timing

5% to 40% Design.Pre RFP.RFP.May want to consider more than one study.

Dependent upon stage of procurementPlanningPre RFPRFP

Study Approach

RFP - Unique process• Independent team with no prior knowledge of project• Reviewed performance specifications and project specific

special provisions• Team developed defined requirements• Team brainstormed on how they would bid and build the

project• Concept design team presented design concepts• Value Engineering team made recommendation on revising

specs and provisions to reduce risk, improve performance and or reduce cost

Focus Areas

• Structures• Construction • Utilities • Traffic Handling• Environmental /Stormwater• Pavements • Design

I-15, 600 North to I-215Beck Street Bridge Replacement

Project Background

• This section of I-15 provides the only freeway connection between Salt Lake and Davis counties.

• Projected peak period traffic demand for 2008 and 2020 exceeded existing NB and SB capacities.

• Design-Build chosen to expedite project delivery, transfer risk to the contractor, and add innovation.

• VE Study not required per Federal or State rule

Scope of the Study

The study was conducted with design approx. 30% complete – RFP development pending.

Study Timing

Verify or improve upon the existing design by providing recommendations that:

•Assist in defining the project within the existing budget of ~$120 million

•Identify potential performance specifications that reduce or mitigate project risk

•Beck Street RR over crossing •Roadway sections•Maintenance of Traffic during construction (MOT)

VE Team Study Results

• Majority of recommendations included in performance specs or reference data.

• Recommendations improve MOT and life-cycle costs.

• In addition, details on how to avoid, mitigate, accept, or transfer risk in specific areas were addressed in the VE report.

I-15 at 11400 South Interchange

Project Background• Estimated Project Cost $245M

• The project provides an additional east-west arterial roadway in the Salt Lake Valley.

• 11400 South currently has two and four-lane sections and a segment with no existing roadway.

• EIS commitments, utilities, RR and River crossings, and interchange layout among the many concerns.

• VE Study not required per Federal or State rule

Scope of the Study

The study was conducted early in the design process – RFP development pending.

Study Timing

Reduce cost.

Verify or improve upon the existing design.

Develop proposals to be included in the RFP.

VE Team Study Results

• VE team generated 33 ideas with 14 ideas selected for inclusion in the RFP.

• Total estimated savings of $17.4 M (7.1 percent of project costs) if recommendations implemented.

I 405 NE 195th St to SR 527 Auxiliary Lane Project

Project Background

• $40 million in Federal stimulus funding had been identified for construction of this project.

• Part of a much larger project – this piece broken out to take advantage of funding.

• Must be under construction Fall 2009.• Project team did not want VE Study –

requested variance. • FHWA - no study no funding.

Scope of the Study

The study was conducted while the project is in the 15% +/- design phase.

Study Timing

At the time of the study the estimated total project cost was over budget ($51M) by +10%. The team was task with finding ways to reduce the estimated cost while maintaining the goals and objectives of the project.

VE Team Study Results

• Discovered fatal flaw• Recommendations if implemented could

result in a savings of greater than 10%• Project team – “VERY HAPPY”

Strategy No. Strategy Description Initial Cost Savings

1 VE Team Recommended1. Retaining walls, 2. Stormwater Vaults $1,737,500

2 VE Team Recommended(3) Widen to the outside $5.7M

I-405/ NE 8th ST to SR 520 Braided Ramps – Interchange Improvements

Project Background

• Project Estimate $255M• Highly Urbanized, ADT 251,000• Under construction Winter 2009.• Project team did not want VE Study – felt

the delivery method of DB did not need a VE Study.

Scope of the Study

The study was conducted at +/- 30% design – Draft RFP completed.

Study Timing

Verifying or improving proposed concepts.

Reviewing requirements to ensure they are adequately included in the RFP

Develop Recommendations to minimize risk to the owner

• Developed 48 Recommendations • 24 of the recommendations reduced risk.• 34 improved performance.

Due to the short duration of the study a number of the recommendations were not quantified for actual savings; those that were quantified totaled over $34 million in savings (if implemented).

VE Team Study Results

Bundle 508I-5 Elkhead Road- OR 126;

Knowles Creek

This project consists of seven bridges.

The project is located on Interstate 5 and OR 126 in Douglas and Lane counties.

VE and Risk Assessment Methodology and tools used to develop RFP

The estimated design and construction cost for this bundle is $47 million.

Project Background

Scope of the Study

The study was conducted at +/- 30% design – Draft RFP completed.

Study Timing

The value engineering team was challenged with testing the boundaries of the draft performance specifications and project-specific provisions to ensure that ODOT was getting the best value for the project.

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5 General Recommendations 24 Site Specific Recommendations

VE Team Study Results

Recommendation — G2, Design VehicleDescription/Concept of RecommendationPerformance Specification SP141.31.(c)(6): Design Vehicle. Confirm that design vehicle to be accommodated is a WB-62.Remarks/DiscussionA WB-62 may not be the appropriate design vehicle for these routes. I-5 is an Interstate and OR 126 is an OHP freight route, both of which accommodate WB-67s on a regular basis.

Remarks/DiscussionThe liquidated damages incurred drop from the $50,000 for the first 24 hours to $5,000 per day. This would set up a situation where the D-B team could keep the road closed another 10 days at $5,000 per day before they approached the cost of the first 24 hours beyond theallowed closure time.

A Design-Builder could then decide to do the work in eight days and include $100,000 to cover any penalties. The result would a hugepublic relations problem for the Agency.

Recommendation — Knowles 1

Recommendation — Knowles 1

Recommend that the incentive/disincentive clause be eliminated and be replaced by an increasing liquidated damage clause. As an example, the first 12 hours at $5,000 then increasing to $10,000 for the next 12 hours, etc.

BUNDLE 414US 395: McKay Creek-Silvies

Slough

This project consists of seven replacement bridges.

The project bridge sights are on 4 different highways located in a very remote region of eastern Oregon,

The estimated design and construction cost for this bundle is $39 million.

Project Background

Scope of the Study

The study was conducted at +/- 30% design – Draft RFP completed.

Study Timing

The value engineering team was challenged with testing the boundaries of the draft performance specifications and project-specific provisions to ensure that ODOT was getting the best value for the project.

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6 General Recommendations 25 Site Specific Recommendations

VE Team Study Results

Questions