RD38 - Value Engineering of State Agency Capital Outlay Projects for Fiscal Year 2003


Executive Summary:
I. Introduction

The Director of the Department of General Services is required by Section 2.2-1133 of the Code of Virginia to report to the Governor and the General Assembly on or before September 15 of each year the (i) number and value of the state capital projects where value engineering (VE) was employed and (ii) identity of the capital projects for which a waiver of the requirements of Section 2.2-1133.B was granted, including a statement of the compelling reasons for granting the waiver. This report provides information for the period from July 1, 2002 through June 30, 2003.

II. Projects

Seventeen (17) projects with a combined estimated construction value of approximately $347 million qualified for the Value Engineering process. The requirements for Value Engineering are defined in Section 2.2-1133 of the "Code of Virginia". The associated administrative procedures are provided in the Commonwealth of Virginia, "Construction and Professional Services Manual for Agencies", December 1996 (CPSM).

III. Savings

Estimated savings for owner-accepted VE items were provided for eleven (11) of these projects. These projects had a total combined estimated construction value of approximately $285 million. The estimated savings recommended by the value engineering teams and accepted by state agencies for these projects totaled $83 million. These results are significantly skewed by the large UVa Arena project. Excluding the Arena, the VE savings accepted for the remaining ten (10) projects totaled $5.2 million or 4.1% of the estimated construction value.

IV. Waivers Granted / Projects Excluded

The six (6) projects granted waivers or otherwise excluded from the VE process are identified in Table 2.