The purpose of this article is to explore the Variations register and explain how to create a Value Engineering Proposal (VEP).
Video content is available below.
The Variations register is an area within a FIDIC contract where all Value Engineering Proposal events are held. This includes Value Engineering Proposals and Request for Proposals (RFP).
The status of each event is located on the right side of the register. This will outline whether the event is currently in one of the following states;
- Draft - Event has yet to be communicated
- AWAITING PROP - Variation is awaiting Contractor's Proposal
- PROP SUBMITTED - Contract Proposal Submitted, awaiting reply from Employer
- CLOSED - Implemented
- NOT ADOPTED - Variation has been rejected and closed by the Employer
- The first reference column displayed is the unique reference number given to the Variation, the second reference column (CC Ref) is a unique Change Control reference.
- If the TBD (To Be Determined) box is selected within the register, this indicates the Employer has made their intent to assess the Variation and once progressed effectively, implements the event with their chosen price and day impact estimations.
- The printer symbol located at the top of the register allows the register to be printed and exported in summary and detailed versions.
Presented at the bottom of the register are the total values (price/days) that the contract may be impacted by. These are colour coded to reflect different states:
- Orange values = Estimated
- Black values = Current CP/DC
- Blue values = Implemented
Please note this communication type is exclusive to the Contractor's party.
To create a new VEP, navigate to the left-hand expandable menu and select Create New, followed by Value Engineering Proposal:
This will open up a new event form ready to edit. Within this form there are 4 compulsory fields to complete before the event can be communicated. These are highlighted in red below:
The estimations will need to be populated to progress the event, even if the impact is valued at zero.
If the event is not progressed, it will remain in draft status at the top of the following 2 registers;
- Change Control register
- Variations register
Once a VEP has been communicated it will alert the Employer's party and generate a reminder within their reminders page:
The Employer will then be able to respond to the VEP. This response may be one of the following;
- This Value Engineering Proposal (VEP) will not be adopted
- Request for Proposal (RFP) for this Value Engineering Proposal (VEP)