Post-Contract VE Formula

This procedure calls for receiving a VE proposal from the contractor after TEPCO signs a contract with him or her. Then the procedure has the proposal reflected in our purchasing specifications and offers the contractor a reward according to the amount of cost that can be reduced by the proposal.
TEPCO does not pay the cost involved in the preparation of documents necessary for VE proposals.
The post-contract signing VE proposal procedure is performed by the following flow:

Model Flow

Explanation of Flow

Submission of Written Proposal

The contractor submits written VE proposals, if any, to the Materials & Procurement Department of TEPCO.

Inspection of Proposal

TEPCO decides whether or not to adopt the proposals after comprehensively inspecting them in terms of technology, safety, cost, etc. to find if their contents meet our quality, function and performance requirements.

Order Correction Procedure

If any of the VE proposals submitted is accepted, a procedure is taken for correcting the order accordingly.

Reward According to Amount of Cost Reduced

TEPCO offers the contractor a reward according to the amount of cost that can be reduced by the adopted proposal. Information on the details of such reward will be provided on individual cases.