Contractor's Implementation Cost

Definition

Contractor's Implementation Cost refers to the expenses incurred by the contractor in the development, testing, preparation, and submittal of a value engineering change proposal.

Purpose

The purpose of tracking Contractor's Implementation Cost is to account for the additional resources and efforts required to propose and implement cost-saving or efficiency-improving changes to the project.

Examples of Use

• A contractor proposes a value engineering change to use a different material that saves costs and requires analysis and testing.
• Developing detailed drawings and specifications for an alternative construction method incurs implementation costs.
• Submitting a comprehensive proposal to the project owner, including cost-benefit analysis and potential impacts, involves significant effort and expense.

Related Terms

• Value Engineering: A systematic method to improve the "value" of goods or products and services by using an examination of function.
• Change Order: A document issued to change the scope of work, price, or schedule of a project.
• Project Management Costs: Expenses related to the planning, coordination, and control of a project.

Notes

Contractor's Implementation Costs should be carefully documented and justified as part of the value engineering process to ensure they are recognized and potentially reimbursed by the project owner.