HD70 - Value Engineering of State Agency Capital Outlay Projects for Calendar Year 1997

Executive Summary:
I. Introduction

The Director of the Department of General Services is required by Section 2.1-483.1:1 of the Code of Virginia (Appendix A) to annually report to the Governor and the General Assembly on the (i) number and value of the capital projects where value engineering (VE) was employed and (ii) identity of the capital projects for which a waiver of the requirements of Section 2.1-483.1:1 was granted, including a statement of the compelling reasons for granting the waiver. This report provides the information for calendar year 1997 as required by the Code of Virginia.

II. Projects

Of all capital outlay projects under some stage of design during calendar year 1997, ten (10) projects with an estimated construction value of $147,781,400 qualified for Value Engineering as required by Section 2.1-483.1:1 of the Code of Virginia and Section 814.0 VALUE ENGINEERING of the Commonwealth of Virginia Construction and Professional Services Manual for Agencies, December 1996 (CPSM) (Appendix B).

III. Savings

Nine projects were value engineered during calendar year 1997 with a total estimated construction value of $135,981,400. Estimated savings recommended by the value engineering teams and accepted by state agencies totaled $11,494,000, or 7.8% of the estimated construction value.

IV. Waivers Granted

One project was granted a waiver of the requirement to be value engineered. This project was the site adaptation of a previous project that was value engineered in 1995. The estimated construction value of the project was $11,800,000.