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Value Engineering: A Legal Perspective. David M. Governo Governo Law Firm LLC 260 Franklin St. Boston, MA 617.737.9045 dgoverno@governo.com 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

dgoverno@governo.com

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!!!