Contractor-Proposed Value Engineering occurs when by changing its materials, means, methods, or schedule, a contractor can offer “Value Engineering” cost savings that it will share with the Client.  The Consultant of Record will likely be asked to review the proposed change.  The risks associated with accepting contractor-proposed changes can be enormous especially compared with the compensation received by the Consultant to review the contractor’s “Value Engineering” proposal.  Some Clients may expect the Consultant to review the contractor’s “Value Engineering” proposal at no cost. 

The following suggestions may be helpful in avoiding misunderstandings between the Client and the Consultant:

1. Include a provision in the contract between the Client and Consultant that calls for the Consultant’s reviewing “Contractor Proposed Value Engineering” as an Additional Service.
     
2. Include a provision in the contract between the Client and the contractor requiring that the contractor provide certain specific information that will be needed by the Consultant to evaluate a contractor’s “Value Engineering” proposal.
3. Include a provision in the contract between the Client and the Consultant that limits the Consultant’s liability for review of contractor’s “Value Engineering” proposals.