MoRTH, vide circular dated September 20, 2024, recommended inclusion of value engineering as one of the tasks during the preparation of the Detailed Project Report ("DPR") and during the construction and maintenance of highways.
- Value engineering during preparation of DPR:
- Value Engineering will be assigned as one of the tasks in the terms of reference of the consultant for feasibility study and detailed engineering projects. In the inception report itself, there will be a chapter on value engineering, in which the DPR consultant will include the potential and project-specific value engineering aspects identified by the respective domain experts;
- In the feasibility report, the DPR consultant will examine the applicability, durability, constructability and appropriateness of the value engineering aspects. DPR consultant will prepare cost estimate of different items of work involving conventional material/technology and various value engineering options identified and will recommend the optimum option;
- During the project appraisal, in the project appraisal and technical scrutiny committee/ standing finance committee memorandum, there will be a paragraph on the value engineering practices examined/evaluated and finally adopted. The paragraph will also contain a statement affirming that the technical schedules of the bid document have been prepared in accordance with this MoRTH circular.
- Value engineering during construction:
- The material/technology used in the project will normally satisfy the requirements of codes, standards, specifications, guidelines of Indian Roads Congress ("IRC"), MoRTH, American Association of State Highway and Transportation Officials ("AASHTO"), Euro Code and British Codes with regards to design, pre-construction, construction, quality assurance, quality control and acceptance;
- Independent Engineer will review/approve the proposed value-engineered design within the stipulated time period specified in the concession agreement in respect of material/technology which satisfies the requirements of codes, standards, specifications, guidelines etc. of IRC, MoRTH, AASHTO, Euro Code and British Codes and material/technology accredited by IRC. While approving the design prepared by the concessionaire following the aforesaid codes, standards, etc., the independent engineer will ensure that the design parameters conform to the conditions of project site;
- After acceptance of design, a detailed construction methodology along with requisite details such as proposed machinery/plants/equipment (e.g. purpose-built soil stabiliser for soil stabilisation), quality assurance and quality control, traffic diversion, environmental compliance, construction sequence, material design, etc., will be submitted to the independent engineer for approval;
- Schedule 'H' of EPC contract/Annex-I of Schedule 'G' of HAM concession agreement will be modified to indicate appropriate stage(s) of value engineered option(s). Such changes in Schedule 'H' or Annexure – I of Schedule 'G' will be incorporated with the approval of competent authority through a supplementary agreement;
- The concessionaire will be entitled to retain all the savings accrued to them on account of value engineering practices adopted by the concessionaire; and
- For any proprietary product such as reinforced soil wall, retaining wall, expansion joints, bridge bearing, etc., concessionaire will ensure signing of agreement between the concessionaire and technology provider before use of such material/technology/design in the relevant project. Under the agreement the technology provider will be obligated to deploy the requisite design experts/material technologist/skilled and trained construction supervision personnel to certify material testing and material characterisation for design, proof check of the design, approve construction methodology including field trial sections before actual construction, quality control and supervision and certification of the day-to-day construction/execution.
The circular has clarified that it will be applicable to projects for which bids will be received on or after November 1, 2024.
Source: MoRTH Circular dated September 20, 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
