Workshop Follow Up - Changes in Contracts, Value Analysis and Value Engineering

Hey all!

As promised, I dug further into a few questions that came up in our workshop last Sunday.

The first question was what happens if the client decides to remove supplemental services that were previously agreed upon? For any changes in scope, compensation or other terms that were previously agreed upon in the B101, the G802 contract is used to amend it. G802 - AIA

The second topic was provide further clarity around the definitions and use of value analysis and value engineering.
Value Analysis and Value Engineering are often used interchangeably in the design and construction industry, however they do have some slight differences on WHEN they occur.
Value Engineering is typically used in the design phases as it is a more in-depth effort of evaluating designs and materials that are less expensive. The sooner this occurs, the better.
Value Analysis is typically done in the construction phases and can involve the contractor/constructor in assisting with providing substitutes that may offer a better value.
Depending on the extent of the value engineering/analysis effort, an architect may request an additional service or include as a supplemental service, as the architect is not contracted to provide detailed cost estimates as a part of their basic services. It is up to the architect to discern if what is being asked of them goes above and beyond their basic service. The B204 outlines a contract for when a value analysis consultant is needed.

I hope this helps provide further clarity around these topics, but please let me know if there are any follow up questions! Happy studying!

Coach BK

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