Construction projects face many challenges: budget constraints, safety issues, environmental impact. By applying the value methodology (also called value engineering, value analysis or value management) to construction projects, highway and transportation departments saved U.S. taxpayers $1 billion in 2000. Transportation agencies around the world employ the value methodology to benefit transportation providers, travelers and taxpayers by:
- Reducing project construction costs
- Decreasing operation and maintenance costs
- Reducing paperwork
- Simplifying procedures
- Improving project schedules
- Reducing waste
- Increasing procurement efficiency
- Using resources more effectively
- Developing innovative solutions
- Meeting federal and state laws requiring VM
"Value engineering demonstrates President Clinton’s commitment to common sense government. Federal programs like this allow [the U.S. Department of Transportation] to work with state and local governments to build roads that are safe, to stretch the buying power of federal dollars and, in some cases, to complete roadway projects ahead of schedule. ... Value engineering is beginning to pay off literally, and states that have developed active programs are finding the results well worth the investment."
— Rodney E. Slater
U.S. Secretary of Transportation
- Airports and air transport
- Rail and bus facilities and systems
- Ports, waterways and shipping
- Public and private transportation systems
- Highway facilities and traffic control
- Intermodal stations and terminals
- Transportation data and communication
- Environmental impact
- Regional transportation planning
- Value methodology saves U.S. taxpayers $750 million
U.S. highway and transportation departments saved taxpayers a record amount in 1998 by implementing the value methodology on federally funded highway projects. State and federal transportation agencies completed 421 VM studies in 1998. The studies produced more than $750 million in cost savings — the largest in the program’s history and a 47 percent increase over the savings in 1997.
"Virginia became the first state to statutorily require the use of the value management process on all transportation projects exceeding $2 million. Since the VE program was expanded in 1990, VDOT has achieved over $100 million in total cost savings."
— Ron F. Garrett
Virginia Department of Transportation
Value methodology savings enables states to get more value from their highway-construction dollars. State transportation departments spent more than $6 million to administer VM programs and realized a return on investment of $121 for every dollar spent.
The U.S. highway industry has employed the methodology for more than 20 years. A 1995 congressional mandate requires a VM study on all federal-aid projects of $25 million or more.
"Aside from the cost savings generated, the value engineering process fostered a greater understanding of the project goals and the need for systems integration among the members of the design team. The inclusion of a member of the end-user group on the VE team helped them examine operational concerns for the base design and the potential alternatives, and gave the users a much clearer understanding of what they were getting."
— Kelly Giblin
New Jersey Department of Transportation
Value Engineering Gives Ft. Meade Better Barracks
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