MoRTH proposes cost-effective value engineering techniques

The Ministry of Road Transport and Highways (MoRTH) has proposed mandating highway builders adopt cost-saving value engineering techniques.

According to a report, it was established to reduce costs by 10-15% of the initially designed project cost.

It was suggested to assign value engineering among the Terms of Reference (ToR) for feasibility study and Detailed Engineering projects.

In the Inception Report, there shall be a chapter regarding Value Engineering, where the consultant shall include the potential and project-specific value engineering aspects identified by the relevant experts based on on-site surveys.

The Ministry highlighted the need to adopt value engineering practices in design, construction and maintenance concerning the use of materials and technology. It is being considered a vital step to meet the sustainable development of the National Highway (NH) network cost-effectively, resulting in improved durability and safety, higher quality and a reduction in maintenance.

As per the notification, the existing models under which highway development projects are carried out have the potential for the contractor or the concessionaire to adapt designs and construction methodologies as per the project requirement and reduce costs.

But despite the facilitative provision for value engineering, contractors or concessionaires, from the apprehension that the authorities would take adverse views on alternative technologies and avoid deviations from the specifications or technologies sought in the bid documents.

However, there is no prevailing contractual facility for value engineering in NH contracts to compel the contractor to adopt value engineering.

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