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Value Engineering

Laws, Regulations and Policy

State DOT's and local agencies are required to conduct a VE analysis prior the completion of the final design on each applicable project that utilizes Federal-aid highway funding, and all approved recommendations shall be included in the project's plans, specifications, and estimates. The need to conduct a VE analyses is required on all projects that utilize Federal-aid highway funding with an estimated total cost of $25 million or more that are located on the National Highway System (NHS), and all bridge projects with an estimated cost of $20 million or more that are located on or off of the NHS that utilize Federal-aid highway funding (as specified in 23 U.S.C. 106(e)).

This web site provides the statutory and regulatory framework of the Federal laws, regulations, policies, and guidance which govern conducting a VE analyses and a State DOT's VE programs.

Laws

  • 23 U.S.C. 106
    • Value Engineering Analysis - 23 U.S.C. 106(e)
    • Life-Cycle Cost Analysis – 23 U.S.C. 106(f)
    • Oversight Program – 23 USC 106(g)

Regulations

The FHWA published the Final Rule updating the VE regulations (as specified in 23 CFR 627) (.pdf) in the Federal Register on September 5, 2014. The Final Rule becomes effective on October 6, 2014, 30 days after its publication. This rulemaking updates 23 CFR part 627 to implement the changes made by section 1503 of the Moving Ahead for Progress in the 21st Century Act (MAP-21). The general intent and requirements of the VE regulation will remain the same. Specific changes to the regulation include: specifying that a VE analysis is required for each project on the National Highway System (NHS) with an estimated total project cost of $50 million or more that utilizes Federal-aid highway funding; specifying that a VE analysis is required for each bridge project on the NHS with an estimated total project cost of $40 million or more that utilizes Federal-aid highway funding; removing the VE analysis requirement for bridges off the NHS; clarifying that a VE analysis is no longer required for projects delivered using the design build method of construction; and clarifying when a VE analysis should be conducted on projects delivered using the Construction Manager/General Contractor (CM/GC) method of contracting.

Policy

Guidance

More Information

Contact

Ken Leuderalbert
Office of Program Administration
317-226-5351
E-mail Ken

 
 
PDF files can be viewed with the Acrobat® Reader®
Updated: 09/05/2014
 

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United States Department of Transportation - Federal Highway Administration