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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.


  • 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)


The FHWA published the Final Rule updating the VE regulations (as specified in 23 CFR 627) in the Federal Register on March15, 2012. The Final Rule becomes effective on April 16, 2012, 30 days after its publication. This final rule updates the existing regulations to be consistent with prior statutory changes (as specified in 23 U.S.C 106) and to address certain findings in the 2007 Office of Inspector General report on VE in the Federal-aid Highway Program. The regulation was also revised to enhance the consistency of VE analyses conducted, advance the integration of VE analyses into the development of Federal-aid projects, and to improve FHWA's stewardship and oversight of these regulations and State DOT VE programs.



More Information


Ken Leuderalbert
Office of Program Administration
E-mail Ken

PDF files can be viewed with the Acrobat® Reader®
Updated: 09/04/2013

United States Department of Transportation - Federal Highway Administration