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Value Engineering: A Legal Perspective. David M. Governo Governo Law Firm LLC 260 Franklin St. Boston, MA 617.737.9045 [email protected] www.governo.com. Value Engineering: Legal Goals. Get Paid Avoid Claims. Value Engineering: Definition. Structured Process Assess Design/Materials

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Value engineering a legal perspective

Value Engineering:A Legal Perspective

David M. Governo

Governo Law Firm LLC

260 Franklin St.

Boston, MA

617.737.9045

[email protected]

www.governo.com


Value engineering legal goals
Value Engineering:Legal Goals

  • Get Paid

  • Avoid Claims


Value engineering definition
Value Engineering:Definition

  • Structured Process

  • Assess Design/Materials

  • Assure Goals Met


Get paid your contract
Get Paid:Your Contract

  • Conflict Recognition & Avoidance

  • Clear Communication

  • Documented Agreement


Get paid additional services
Get Paid:Additional Services

  • Build Value Engineering into Contract

  • Detail Your Scope of Services

  • Clarify Payment Terms


Engineering contract s liability risks
Engineering Contract’sLiability Risks

  • Lack of Detail

  • Indemnification Provisions

  • Warranty and Guarantee Clauses


Value engineering legal protection
Value Engineering:Legal Protection?

  • Facility should operate “better”

  • But: What Goals?

    • Risk Management

    • Claim Avoidance


Value cutting liability
Value Cutting = Liability

  • Sound “Goals”

  • Qualified Team

  • Proper Documentation


Sources of engineer s liability
Sources of Engineer’s Liability

  • Contract: Failure to meet terms

  • System/Facility: Failure to perform


System or facility s failure to perform
System or Facility’s Failure to Perform

  • Engineer’s Duty: Standard of Care

  • Specification of Less Durable Component

  • Documentation of Value Engineering Process


Record keeping
Record Keeping

  • What to document?

  • How to describe?

  • Keep for how long?


Case study value engineering
Case Study:Value Engineering

  • HVAC in Office Building

    • Fan and pump motors originally specified were “engineered” out to save initial cost

    • Less expensive/less durable motors

    • Occupants complained

    • Motors failed


Case study claims
Case Study:Claims

  • Allegation: Breach of Contract

    • Failure to properly design

    • Selection of materials that were non durable


Case study documentation
Case Study:Documentation

  • Owners & other consultants requested change

    • Reason for change and expected results described

    • New operations and maintenance specified

    • Owner’s acceptance documented

    • No breach of contract

    • No negligence


Protect yourself at all times
Protect Yourself at all Times

  • Understand

  • Analyze

  • Act!!!


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