Consulting Engineers call for inclusion of Value Engineering in EPC contracts for cost effective technologies

New Delhi, Aug 31 (KNN) The Consulting Engineers Association of India (CEAI) has urged the government to include Value Engineering as part of the Engineering, Procurement and Construction (EPC) Contract document for faster adoption of cost saving newer technologies and speediness in finishing of the project.

The apex body of Consulting Engineers in India has written a letter to Nitin Gadkari, Union Minister for Road Transport and Highway (MoRTH) appealing for the inclusion of Value engineering as part of the EPC Contract, said a press release.

Explaining the request, K K Kapila, Chairman, Business and Policy Committee at CEAI said, “Currently, MoRTH’s EPC contract document which is broadly based on International Federation of Consulting Engineers (FIDIC) document the Article 13 related to Variation/Change of Scope, the term ‘value engineering’ is missing from the MORTH EPC document.”

Kapila who also serves as FIDIC ambassador for Asia Pacific Region opines that it dilutes the concept of value engineering restricting it to a pre-determined cost, and stifles use of new-technology which can result in substantial and justifiable value addition.

“The inclusion of Value engineering in the EPC contract will help in adoption of cost effective technologies and better engineering. This value can be in terms of speed of construction which in turn results in quicker availability of a road or bridge for commercial utilisation,” he added.

CEAI chief said there is also significant value in lower maintenance costs in the long run and the savings on raw materials which is a critical national resource.

The association said first step could be to incorporate ‘value engineering’ in letter and spirit in the MORTH EPC document, as spelt out in the FIDIC concept.

It has also urged to issue guidelines on what will constitute earned value, encouraging time saving methods and new-technology. (KNN Bureau)