Common use of Value Analysis Clause in Contracts

Value Analysis. A. The CM/GC shall, after a complete review of the Project, evaluate the designs available at the time of the CM/GC’s commencement of pre-construction services, and obtain an understanding of the intent of the CITY and the Project Designer, provide value analysis services and offer cost savings suggestions and best value recommendations as to the consistency and appropriateness of the project and the project’s budget to the CITY. All recommendations must be fully reviewed with the Project Designer and CITY, and approved by the CITY prior to implementation. CITY and CM/GC shall identify acceptable time frame by which CM/GC shall provide initial program evaluation. B. Value analysis efforts shall result in a design that is most effective in first costs as well as long term operational costs relative to issues of energy use and facility maintainability. Value analysis studies shall include life cycle cost analysis as may be required to assist the Project Designer to achieve an appropriate balance between costs, aesthetics and/or function. C. Value analysis efforts shall also take into consideration applicable constructability issues. D. The CM/GC shall promptly notify the CITY and Project Designer in writing upon observing any features in the design that appear to be ambiguous, confusing, conflicting or erroneous. E. All value analysis studies must be provided on a timely basis within the design schedule. F. Value analysis studies shall be continuous as the design is being developed. G. The CM/GC shall conduct value analysis throughout the project and provide the CITY estimates as appropriate and shall conduct major value analysis at completion of the schematic design phase and at the design development phase (utilizing the Design Development documents), which analysis shall include, but not be limited to, the items noted below: 1. Develop value analysis concepts for consideration at the session noted in #2 below (it is anticipated that the Project Designer will be concurrently conducting a similar activity). 2. Brainstorming session(s) with the Project Team. 3. Written cost studies shall be produced and submitted to the CITY within two (2) weeks of the brainstorming session. 4. Written pro/con evaluation of the cost studies shall be provided with the cost studies. 5. Formal presentation of the written study to the Project Team shall be conducted by the CM/GC firm. 6. A final written value analysis study document including a summary of value analysis items, applicable cost adjustments, selected items and their corresponding cost adjustments shall be presented to the Project Team. H. In between the milestones for major value analysis studies, the CM/GC shall periodically provide a tracking report which identifies the increases or decreases in costs due to value engineering or scope changes. It shall be the responsibility of the CM/GC to keep the CITY and Project Designer informed as to the major trend changes in costs relative to the CITY’s budget.

Value Analysis. A. The CM/GC shall, after a complete review of the Project, evaluate the designs available at the time of the CM/GC’s commencement of pre-construction services, and obtain an understanding of the intent of the CITY and the Project Designer, provide value analysis services and offer cost savings suggestions and best value recommendations as to the consistency and appropriateness of the project and the project’s budget to the CITY. All recommendations must be fully reviewed with the Project Designer and CITY, and approved by the CITY prior to implementation. CITY and CM/GC shall identify acceptable time frame by which CM/GC shall provide initial program evaluation. B. Value analysis efforts shall result in a design that is most effective in first costs as well as long term operational costs relative to issues of energy use and facility maintainability. Value analysis studies shall include life cycle cost analysis as may be required to assist the Project Designer to achieve an appropriate balance between costs, aesthetics and/or and function. C. Value analysis efforts shall also take into consideration applicable constructability issues. D. The CM/GC shall promptly notify the CITY and Project Designer in writing upon observing any features in the design that appear to be ambiguous, confusing, conflicting or erroneous. E. All value analysis studies must be provided on a timely basis within the design schedule. F. Value analysis studies shall be continuous as the design is being developed. G. The CM/GC shall conduct value analysis throughout the project and provide the CITY estimates as appropriate and shall conduct major value analysis at completion of the schematic design phase and at the design development phase (utilizing the Design Development documents), which analysis shall include, but not be limited to, the items noted below: 1. Develop value analysis concepts for consideration at the session noted in #2 below (it is anticipated that the Project Designer will be concurrently conducting a similar activity). 2. Brainstorming session(s) with the Project Team. 3. Written cost studies shall be produced and submitted to the CITY within two (2) weeks of the brainstorming session. 4. Written pro/con evaluation of the cost studies shall be provided with the cost studies. 5. Formal presentation of the written study to the Project Team shall be conducted by the CM/GC firm. 6. A final written value analysis study document including a summary of value analysis items, applicable cost adjustments, selected items and their corresponding cost adjustments shall be presented to the Project Team. H. In between the milestones for major value analysis studies, the CM/GC shall periodically provide a tracking report which identifies the increases or decreases in costs due to value engineering or scope changes. It shall be the responsibility of the CM/GC to keep the CITY and Project Designer informed as to the major trend changes in costs relative to the CITY’s budget.