“Value Engineering…?” – Changes During Construction

“Value Engineering” is a frequently found clause in Construction contracts in the USA, allowing contractor-initiated design changes. Misleading is the interpretation of “value engineering” to imply cost savings shared with the owner, and its implementation during construction, is problematic. It is not surprising that such a clause would simply be ignored because it involves changes in design, often major changes in very short time; and change is feared and vehemently resisted by all parties, owner, designer, and contractor. The problem may lie in the divergence and separation of the designer/engineer and builder/contractor; their priorities and incentives are very different. The engineer spends years, even decades, in design and prepares contract documents often without a deep-seated understanding of construction methods, including geotechnical construction. Even worse, given extensive computational advancements, the designer submits exaggerated code-based designs with excessive safety factors. As for the contractor, he often builds without full appreciation of design principles or regard for design engineers. Owner budget and schedule constraints (not commensurate with his demands) and the ever-increasing litigious climate have exacerbated the situation. Adverse and hostile relationship between the various groups is often the norm with extended disputes and claims, not to mention the costs these entail. Redesign to apply a new technology or optimization of an inferior design just before construction becomes unthinkable. Four case histories are presented