NJDOT Value Engineering Process - State
2017NJDOTValue Engineering Process GuidelineNJDOTValue Engineering Unit
Table of ContentsNJDOT Value Engineering Process. 1Introduction . 1Value Engineering Process and Job Plan . 1Stage I. Pre-VE Workshop Study . 21.Project Selection Phase. 32.Information Gathering and Investigation Phase- Part I . 4Stage II. VE Workshop Study . 41.Information Gathering and Investigation Phase- Part II . 62.Function Analysis Phase. 63.Speculation/Creative Phase . 74.Evaluation Phase . 75.Development Phase- Part I . 86.Presentation- Report documentation Phase- Part I . 8Stage III. Post VE Workshop Study. 91.Development Phase- Part II . 102.Presentation- Report Documentation Phase- Part II . 103.Monitoring/Implementation Phase . 11Appendices. 12Appendix A . 13VE Process Flow Chart . 13Appendix B . 16Value Engineering Report Template. 16I
List of FiguresFigure 1 - Value Engineering Study Process .2Figure 2 - Stage I. Pre-VE Workshop Study.3Figure 3 - Stage II. VE Workshop Study .5Figure 4 - Stage III. Post Workshop Study .9Figure 5 - Value Engineering Process Flow Chart . 14Figure 6 - Value Engineering Flow Chart. 15II
Disclaimer:This is not a legal document and is not to be used in any way against the Department of Transportation orthe Value Engineering Unit.III
NJDOT Value Engineering ProcessIntroductionThe objective of the Value Engineering (VE) study is to identify opportunities and recommend alternativesaimed at improving the value of the project in terms of cost, constructability, and maintenance of traffic,while maintaining the basic functional requirements and complying with the purpose and need of theproject.The New Jersey Department of Transportation (NJDOT) has been conducting Value Engineering (VE)studies in accordance with the methodology and the core value engineering methods and proceduresestablished by SAVE International. Since timing is very essential to the success of the VE Study, theNJDOT Value Engineering Unit recommends conducting the study in the early stages of the project at theConcept Development phase after selecting the Preliminary Preferred Alternative (PPA), and before thePreliminary Engineering design phase.Value Engineering Process and Job PlanThe NJDOT process for conducting the VE studies utilizes a systematic problem solving approach by amultidiscipline team to generate alternatives through the use of creative thinking. The NJDOT VE Processconsists of three stages and eight phase methodology.1. VE Study Stages:Stage I.Pre-VE Workshop StudyStage II. VE-Workshop StudyStage III. Post VE-Workshop Study2. VE Study Phases:1. Project Selection2. Information Gathering and Investigation3. Function Analysis4. Speculation/Creative5. Evaluation6. Development7. Presentation/Report Documentation8. Implementation1
Stage IPre-VE WorkshopStudyStage IIVE Workshop StudyStage IIIPost VE WorkshopStudy Project SelectionPhase InformationGathering andInvestigation PhasePart II InformationGathering andInvestigation PhasePart I Function AnalysisPhase Speculation/Creative Phase DevelopmentPhase-Part II Presentation/ReportDocumentationPhase- Part II ImplementationPhase Evaluation Phase DevelopmentPhase-Part I Presentation/ReportDocumentationPhase-Part IFigure 1 - Value Engineering Study ProcessStage I. Pre-VE Workshop StudyThe focus of this stage is to identify and select the appropriate project for the VE Study; establish a clearcommunication line with the Project Manager (PM) and the Designer to obtain and verify all necessaryinformation; and select a VE Team with experience related to the scope of work of the project. All teammembers will be informed of their responsibility toward achieving the goal of the workshop which is toidentify opportunities and recommend alternatives aimed towards improving the value of the project interms of cost, constructability, and maintenance of traffic, while achieving the best balance between cost,performance, and quality.Stage I Pre-VE Workshop consists of two main phases:1. Project Selection Phase and2. Information Gathering and Investigation Phase-Part IAll of the following activities should be completed during this stage by the VE Unit: Identify and select VE project Collect and review project documentation (Project Purpose and Need Statement, PPA, CostEstimate etc.) Identify key issues Identify major objectives of the project2
Evaluate cost estimate and identify highest cost elements Identify team members Determine workshop location and prepare agenda Prepare for the VE WorkshopStage IPre-VE Workshop StudyInformationGathering andInvestigationPhase- Part IProjectSelection PhaseDetermine theValue of theProjectDetermine ifPPA is selectedCollect andreview projectdocumentationIdentify majorgoals of theprojectEvaluate the costestimate/identifyhighest costelementsPrepare for theVE workshopIdentify keyissuesIdentify SME'sand VE TeammembersPrepare agendaand determineworkshoplocationFigure 2 - Stage I. Pre-VE Workshop Study1. Project Selection PhaseThe objective of the Project Selection phase is to identify projects that meet the FHWA value threshold andprojects that could benefit from conducting a VE Study.All projects that meet the following FHWA value threshold criteria shall have a VE Study performed duringthe Concept Development phase of the project: Projects on the National Highway System (NHS) that utilize Federal-aid highway funding with anestimated total cost of 50 million or more.Bridge projects on the NHS that utilize Federal-aid highway funding with an estimated total costof 40 million or more which includes superstructure and substructure requirements based onconstruction material. Bridge projects shall be evaluated based on engineering and economic bases,taking into consideration acceptable designs, lifecycle cost analysis, and the duration of the projectconstruction.Any major project (as defined in 23 USC 106h), located on or off of the NHS, that utilizes Federalaid highway funding in any contract phase or phase compromising the major project3
Any project where a VE Analysis has not been conducted and a change is made to the project’sscope or design between the final design and the construction letting which results in an increasein the project’s total cost exceeding the value thresholds.Any other project FHWA determines to be appropriate that utilizes Federal-aid highway programfunding.The Project Manager may request a VE Study to be performed during the development of the project priorto the final design if the project doesn’t meet the FHWA value threshold but meets one or all of thefollowing criteria: Project cost substantially increasedProject has complex elementsProject with high ROW costProject with specific high cost itemsRequested by Senior Management2. Information Gathering and Investigation Phase- Part IThe Information Gathering and Investigation Phase-Part I is very important to the outcome and success ofthe VE Workshop. During this phase the VE Unit will be collecting project documentation such as ProjectPlans, Project Key Issues , Project Data (Cost Estimate, Congestion Management System Ranking, BridgeManagement System Ranking, Safety Management System Ranking.etc.), in addition to selecting VETeam members with experience suitable for this project.The VE Team should consist of members with diverse work experience and knowledge to appropriatelyevaluate the major areas anticipated within the project. The VE Team members should have no priorinvolvement with the selected project.Stage II. VE Workshop StudyThe objective of the VE Workshop study is to look for opportunities to improve the value of the projectwhile complying with the project purpose and need and conforming to the project constraints. The NJDOTValue Engineering Unit follows a systematic approach in conducting the VE studies, this systematicmethodology consist of the following phases:1. Information Gathering and Investigation Phase- Part II2. Function Analysis Phase3. Speculation/Creative Phase4. Evaluation Phase5. Development Phase- Part I6. Presentation/Report Documentation Phase- Part I4
Stage IIVE Workshop StudyInformationGathering andInvestigationPhase- Part IIFunctionalAnalysis PhaseSpeculation/Creative PhaseDevelopmentPhase-Part IPresentation/ReportDocumentationPhase-Part IPresent theproblemstatement tothe TeamVerify the keyfunctionsThink outsidethe boxRank and scoreall ideasDetermine ifthe idea meetthe purposeand needPresentsummary ofthe workshopoutcomePresent thePPA to theTeamEstimate thecost of the keyfunctionsGenerate newpossibilitiesCombinesimilar ideasProducesketches of theselected ideasPresent keyRisks and Isuesto the TeamDefine needsvs. wantsRecord allideas presentedby the TeamSeparate ideasfromcommentsDetermine ifthe idea needsfurtherdevelopmentHighlight thehigh costelementsEvaluate Risksand costimpact andProvidepreliminarycost estimateVisit the siteSelect highrank ideas forfurtherdevelopmentEvaluationPhaseFigure 3 - Stage II. VE Workshop Study5
1. Information Gathering and Investigation Phase- Part IIThis purpose of this phase is to insure that the VE Team members understand the objective and the purposeand need of the project. The major goals and objectives of the project will be discussed and identified. TheDesigner’s team will provide an overview presentation of the project and its various risks and requirements,describe the proposed PPA, and cover the important technical reports. The VE Unit will conduct a fieldvisit following the Designer presentation to further enhance the VE Team's knowledge and understandingof the project.The following activities will be completed - during the Part II of the Information Gathering andInvestigation Phase - by the Designer, the VE Unit, and the VE Team:2. Provide an overview of the project purpose and need, and the selected PPA to the VE Team Identify the project key issues, risks and constraints Highlight the high cost elements Define the scope of the study, and the workshop goals Conduct site visitFunction Analysis PhaseDuring this phase the team will determine the functions of the project components and the overall functionof the project. Understanding the functional requirements of a project is key to ensure that the project designmeets the goal and the purpose and need of the project.Examples of project components and related functions are shown e of TrafficNEPASHPOTraffic OperationsSafety OperationsMaintenanceITS/VMSAccess ManagementNew PavementShoulderProvide SpaceSupport LoadCross ObstacleRemove WaterCarry PedestriansMaintain TrafficProtect EnvironmentPreserve HistoryMove TrafficPreserve LifePreserve InfrastructureInform TravelerMinimize ConflictsProvide ConnectivityAccommodate Bicyclist6
The following activities will be completed during this phase: Identify and verify the key functions of the project. Estimate the cost of the key function elements Define the project needs and requirements vs. wants and nice to have.3. Speculation/Creative PhaseThe Speculation Phase involves identifying opportunities to improve the value of the project throughcreative thinking. During this phase, the VE Team will participate in a brainstorming session to generate alist of ideas that convey potential value improvement to the project. These ideas will be further reviewedand ranked by the VE Team.This phase includes the following activities: Think outside the box Generate new ideas, new possibilities to improve the value of the project while complying with thepurpose and need of the project. Log and record all ideas presented by the VE Team for further evaluation4. Evaluation PhaseThe purpose of this phase is to evaluate and rank the list of ideas generated by the VE Team during theworkshop against the proposed PPA design concept.The evaluation of the ideas will be based on the following criteria: Cost Impact, Environmental Impact,Operational Performance, Constructability and Likelihood of Acceptance or any other major criteria thatthe VE Team feels is significant to utilize. The ideas will be scored according to the rating legend providedwithin this section, the highest ranked ideas will be considered for further development.Activities to be completed during this phase are: Rank and score all ideas Sort and group similar ideas Separate ideas from comments Evaluate ideas for risks and cost impact (see evaluation criteria next) Select high ranked ideas for further developmentThe rating legend for the evaluation criteria shown next.7
Ratings LegendCost Savings (CS)Environmental Impact (EI)Significant Savings 3Significant Improvement 3Some Savings 2Moderate Improvement 2No Savings 1Minor Improvement 1Additional Costs 0Increased Impact 0Operational Performance (OP)Constructability (CON)Significant Improvement 3Significant Improvement 3Moderate Improvement 2Some Improvement 2No Change 1No Change 1Decreased Performance 0More Complex 0Likelihood of Acceptance (LOA)Operational Performance (During Construction)Very Likely 3Significant Improvement 3Likely 2Some Improvement 2Possible 1No Change 1Unlikely 0Decrease Performance 05. Development Phase- Part IDuring the Development Phase, the selected ideas will be assessed further against operational performance,cost, environmental impact, constructability, risks and likelihood of acceptance. When appropriate, multipleideas may be combined into one. Preliminary sketches will be developed during this phase for the topranked ideas.Activities included in this phase are: List all alternatives that meets the purpose and need of the project Validate the ideas and produce sketches of the selected ideas Turn the best ideas into VE Alternatives with support and justification Provide preliminary cost estimate6. Presentation- Report documentation Phase- Part IPart I of this phase (Presentation- Report documentation) will conclude the Stage II of the VE Study. TheVE Team will provide a summary of the workshop outcome, and a list of VE alternatives recommendedfor further development during Stage III.8
Stage III. Post VE Workshop StudyThis is the final stage and the conclusion of the VE Study. The VE Unit will further develop the workshopalternatives, determine the final recommendations, and present the Final VE report to the Project Managerand his team.This stage consists of the following: Development Phase- Part II Presentation- Report Documentation Phase- Part II Implementation PhaseStage IIIPost VE Workshop StudyDevelopmentPhase- Part IIPresentationReportDocumentation Part IIImplementationPhaseFurther developand sketch theselected ideasDocument theVE Workshopactivities andprocessThe VE Unit willfollow up withthe PM onimplementationGet the designerinputPeprare the draftVE reportDecisionstatement will beprovided by thePMSelect ideas forthe VErecommendationGet the SME'sinput andcommentsAccepted VErecommendationwill be presentedto CCB by PMComplete thefinal VE reportPresent the VErecommendationto the PMFigure 4 - Stage III. Post Workshop Study9
1. Development Phase- Part IIPart II of the Development phase takes place after the workshop. The selected list of ideas presented bythe VE Workshop will be further analyzed by the Designer and the VE Unit based on the followingcriteria when applicable: Purpose and Need Construction Cost Constructability Controlling Design Elements ROW Impacts Access Impacts Utility Relocation Environmental Impacts Staging Impacts Road User Analysis Life Cycle CostThe criteria mentioned above will be used to identify the advantages and disadvantages of each alternativein comparison to the PPA. The results of this comparison along with the Designer feedback and input willbe the determining factor in selecting the VE alternatives. The VE Team will then finalize and conclude thelist of final VE recommendation to include in the VE Report.2. Presentation- Report Documentation Phase- Part IIThe VE Unit will submit a draft VE Report to share and present the preliminary findings andrecommendations of the VE Workshop with the Project Manager, the Design Team, and the VE Team. Thedraft VE Report will provide an opportunity for the Project Manager and the Design Team to review thealternatives and provide their input.As the VE Report is a working document, the VE Unit will capture the input and feedback received fromthe VE Team, the PM and the Designer to finalize the VE recommendations. The final VE Report willdocument the entire VE Study and will conclude and summarize the final VE recommended alternatives.(See sample VE report in appendix B)Steps to be taken at this stage: Document the VE Workshop activities and process and outcome Prepare and submit a draft VE Report to Project Manager, VE Team, and Designer Present VE Workshop finding to Designer and Project Manager and obtain their feedback Prepare the final VE Report and submit to CPM Senior Management, Project Manager, and VETeam10
For projects that do not meet the FHWA threshold, an informal Value Engineering Study can be conductedif requested by the Project Manager or Senior Management. In order to expedite the process for theseprojects the VE Unit will not provide a full VE report, however a summary report of the finalrecommendations will be submitted to the Project Manager and his team3. Monitoring/Implementation PhaseThe purpose of this step is to follow up on the Project Manager’s decision regarding the final VErecommendations.After submission of the final VE Report, the Project Manager and his Design Team will generate aSummary Statement regarding the VE recommendations. The Summary Statement will include the decisionand a detailed justification for that decision. This Summary Statement will be included in the CD reportand should be shared with the VE Unit.Accepted VE recommendations will be incorporated into the PPA and will be presented to the CapitalProgram Screening Committee (CPCS) by the Project Manager for their concurrence.If the VE recommendations are found unacceptable by the Project Manager and his design team, the VEUnit, when appropriate, may request to present the VE alternatives to CPM Senior Management for theirdecision.The VE Unit may monitor the progress of the projects that have implemented VE recommendationsthroughout design (PE and FD) and construction.11
Appendices12
Appendix AVE Process Flow Chart13
Figure 5 - Value Engineering Process Flow Chart14
Figure 6 - Value Engineering Flow Chart15
Appendix BValue Engineering Report Template16
VALUE ENGINEERING REPORTROUTE XXX PROJECTTOWNSHIP OF XXX .XXX COUNTYNJDOTVALUE ENGINEERING UNITDATE
TABLE OF CONTENTSSECTION 1. EXECUTIVE SUMMARY . 1PROJECT OVERVIEW: . 2Purpose and Need: . 2FOCUS AND METHODOLOGY OF THE VALUE ENGINEERING (VE) STUDY: . 2Methodology: . .3VE STUDY RESULTS SUMMARY AND RECOMMENDATIONS . 3VE recommendation Summary .4SECTION 2. PROJECT BACKGROUND AND DESCRIPTION . 5OVERVIEW. 5PURPOSE AND NEED OF THE PROJECT . 5PROPOSED PPA AND COST ESTIMATE . 6PPA: Bridge replacement with 19’ widening . 6PPA: cost estimate. .7SECTION 3. VALUE ENGINEERING METHODOLOGY . 9PRE-STUDY, PRE-WORKSHOP . 9VE STUDY, WORKSHOP . 9POST STUDY . 12WORKSHOP STUDY PROJECT GOAL . 12Major Goals . 12Key Issues . 12SECTION 4. CREATIVE/SPECULATION PHASE . 13BRAINSTORMING IDEAS AND PRELIMINARY RATINGS . 13BRAINSTORMING COMMENTS . 13SECTION 5. EVALUATION PHASE . 14WORKSHOP EVALUATION OF IDEAS . 14NEXT STEPS/FOLLOW-UP ACTION ITEMS: . 15APPENDICES . . 17APPENDIX A . 18PROPOSED PPA PLAN & STAGING . 18APPENDIX B . 19WORKSHOP AGENDA . 19APPENDIX C . 20ATTENDEES . 20
LIST OF FIGURESFigure 1 - Project Location .2Figure 2- PPA: .6Figure 3- PPA: Typical Sections and Staging .7LIST OF TABLESTable 1 - VE Team. 1Table 2– PPA: Cost Estimate . 9Table 3- Brainstorming Ideas . 10
SECTION 1. EXECUTIVE SUMMARYThe New Jersey Department of Transportation (NJDOT) Value Engineering (VE) group is responsible for conductingVE studies and an analysis of all NJDOT projects that meet the FHWA thresholds. The thresholds are 50 million forall projects on the National Highway System and 40 million for bridge projects. Upon request of the ProjectManagement Office, the Value Engineering Unit will conduct studies of projects that have particularly high costitems.The NJDOT Value Engineering group conducted a study of the “Name of the project”, while in the ConceptualDevelopment phase. This report highlights the conclusion of the study and lists the recommended alternatives thatachieve the same objectives of the project yet at a reduced cost than originally proposed.The Executive Summary includes an overview of the project, the study methodology, key findings, and therecommendations developed by the VE Team. Also included are detailed documentations and exhibits of the studyprovided in the report.The Value Engineering (VE) workshop was held on Date. The VE Team consisted of subject matter experts (SMEs)with diverse engineering backgrounds. All participants were independent of the project development team toensure maximum objectivity towards identifying alternative solutions. (See Table Below)NameWork UnitProgram Management OfficeManagerValue EngineeringVE CoordinatorValue EngineeringEnvironmentalStructural DesignStructural EvaluationGeotechnical EngineeringUtilitiesRegional ConstructionConstruction EngineeringTraffic EngineeringTraffic OperationsGeometricsRight of WayAccess DesignOperations/MaintenanceTable 1 - VE TeamTitle
PROJECT OVERVIEW:Project summary information.Figure 2 – Project LocationPURPOSE AND NEED:State the purpose and need of the projectFOCUS AND METHODOLOGY OF THE VALUE ENGINEERING (VE) STUDY:The objective of the Value Engineering (VE) study is to identify opportunities and recommend conceptsaimed at improving value in terms of: cost, constructabilit
by the Team. Evaluation Phase. Rank and score all ideas. Combine similar ideas. Separate ideas from comments. Evaluate Risks and cost impact and. Select high rank ideas for further development. Development Phase-Part I. Determine if the idea meet the purpose and need. Produce sketches of the selected ideas. Determine if the idea needs further .
NJDOT Roadway Design Manual (NJDOT-RDM), 2016 NJ State Highway Access Management Code NJDOT Design Manual for Bridges and Structures, 6th Edition, 2016 Construction Cost Estimation Guide (w/Average Bid Price Reports) Technical Summary, Roundabouts - FHWA E.
Crash data set for all crashes on NJDOT roadways in NJTPA region provided by NJDOT –sorted to identify roadway/lane departure crashes Roadway inventory data for curves on roadway system, collector and above, for NJTPA region CARS curve inventory Most recent NJDOT
NJDOT is a lead agency using High-Performance Thin Overlay (HPTO), . Bridge Design Manual will be updated to include UHPC P&R. CIA TEAM MOBILITY & OPS NJDOT –Sue Catlett FHWA –Ek Phomsavath. EDC-6: Crowdsourcing for Advan
The NJDOT Procedures Manual presents current Department procedures for preparing . all NJDOT and FHWA policies and design standards, with the need to implement highway and . 6.1.2 Guidelines for
Tom Loughlin - Administrator, City of New Brunswick Frank Wong - Exec. Director, Planning, Rutgers Univ. Pat Hogan - Conti Enterprises, CEO . The State of New Jersey Department of Transportation February 17, 2011 Route 18 New Brunswick Improvement Project NJDOT Best Practices Forum.
Value Engineering is a method of applying innovative solutions to a project in an effort to increase the value. The Value Management Office has two programs that apply the principles of value engineering. One involves value engineering studies which occur pre‐let in the early stages of the design development. The second is the value engineering
Barrier curb will be referred to as Portable Concrete Barrier (PCB). (6) The system is NJDOT Type 4 (Alternate B) barrier and box-beam stiffeners, corresponding to connection type B in the 2015 NJDOT Roadway Design Manual. Notes: 25 51 3/16"1300 6"152 6"152 5"127 Impact PLAN VIEW Back Side Traffic Side 227
MOTOR CARRIER SAFETY ASSISTANCE PROGRAM (MCSAP) Federal grant program that provides financial assistance to States to reduce the number and severity of crashes and hazardous materials incidents involving commercial motor vehicles. 3.8 Million in total grant funds that go to NJSP, NJDOT, & NJMV
