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Value Engineering Program

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bridgeValue engineering (VE) was developed during World War II by the General Electric Company to deal effectively with shortages of skilled labor and raw materials. VE is a systematic method of examining performance to improve the value of projects or processes, value being defined as the ratio of performance to cost and thus capable of being increased by either lowering the cost or improving the performance.

Although wartime shortages are a distant memory, MoDOT today faces a distinct shortage of available highway funding that places great importance on value-based, i.e., "practical", design. While VE in the classic sense tends to be somewhat more structured, VE and practical design are truly one and the same. The goal of VE is to build the right project at the right time, achieving delivery of project purpose and need with proper project scope.

MoDOT uses VE to ensure that the public receives full value for every tax dollar invested in Missouri’s transportation system. VE techniques are used to improve productivity in nearly every aspect of MoDOT’s operation, including practices, processes, and procedures. In highway construction, VE encourages contractors to submit proposals for modifying the plans, specifications, or other requirements of the contract to reduce the project’s construction cost.

Program History

Federal F.Y.
No. of Studies
Design Phase Savings
Construction Phase Savings
Department Cost
Return on Investment
1988
10
$8,800,000
$0
$49,000
180
1989
11
$3,200,000
$0
$125,000
26
1990
7
$8,100,000
$104,000
$65,000
126
1991
5
$6,800,000
$252,000
$92,000
77
1992
3
$5,900,000
$175,000
$73,000
83
1993
12
$4,100,000
$561,000
$147,000
32
1994
14
$13,000,000
$762,000
$164,000
84
1995
14
$6,200,000
$557,000
$165,000
41
1996
19
$13,100,000
$1,481,000
$245,000
60
1997
17
$7,620,000
$380,396
$159,411
50
1998
11
$12,190,000
$476,355
$146,976
86
1999
15
$2,700,000
$250,981
$249,272
12
2000
17
$9,645,000
$653,543
$278,239
37
2001
15
$17,300,000
$654,000
$179,288
100
2002
6
$37,000,000
$1,300,000
$119,950
319
2003
4
$13,900,000
$174,486
$52,160
270
2004
5
$8,060,000
$740,098
$66,928
131
2005
8
$59,929,000
$791,047
$104,353
582
2006
24
$39,786,000
$3,269,933
$194,939
221
2007
12
$52,348,000
$4,170,000
$82,309
687
Totals
229
$329,678,000
$16,752,839
$2,758,825
126

During the life of this program, the department has documented savings totaling over $330 million at a cost of less than $3 million; a rate of return of $126 for every $1 invested.

For any questions or to request a VE study, contact ValueEng@modot.mo.gov

 

 

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