CODE OF VIRGINIA

USE OF VALUE ENGINEERING (§ 2.2-1133)

A. The Division shall ensure that value engineering is employed for any capital
project costing more than $ 5 million. Value engineering may also be used for
any project costing $ 5 million or less. For purposes of this section,
“value engineering” means a systematic process of review and
analysis of a capital project by a team of persons not originally involved in
the project. Such team, which shall include appropriate professionals licensed
in accordance with Chapter 4 (§ 54.1-400 et seq.) of Title 54.1, may offer
suggestions that would improve project quality and reduce total project cost by
combining or eliminating inefficient or expensive parts or steps in the original
proposal or by totally redesigning the project using different technologies,
materials, or methods.

B. The review developed pursuant to subsection A shall be compiled in a value
engineering report and submitted to the Division. Each item included in the
value engineering report shall have a status designation of accepted, declined,
or accepted as modified. The Division, within 45 days, must approve the value
engineering report before the project may move to the next phase of design.

C. A value engineering report shall not be required for projects that (i) are
designed utilizing either the design-build or construction management at risk
basis and (ii) have the value engineering process as an integral component. In
such cases, a written summary of the cost savings that have been incorporated
into the design shall be provided to the Division prior to moving forward to the
construction phase of the contract.

D. The Director of the Department may waive the requirements of this section for
any proposed capital project for compelling reasons. Any waiver shall be in
writing, state the reasons for the waiver, and apply only to a single capital
project. On or before September 15 of each year, the Director of the Department
shall report to the Governor and the General Assembly on the (i) number and
value of the capital projects where value engineering was employed and (ii)
identity of the capital projects for which a waiver of the requirements of this
section was granted, including a statement of the compelling reasons for
granting the waiver. The report shall cover projects completed or for which a
waiver was granted within the previous fiscal year.

E. Notwithstanding any law to the contrary, the provisions of this section shall
apply to public institutions of higher education in Virginia.

HISTORY: 1994, cc. 442, 829, § 2.1-483.1:1; 1996, c. 553; 1997, c. 230; 1998,
c. 207; 2001, c. 844; 2008, c. 370; 2015, c. 572.