State DOTs will not have to be as convincing to the FHWA when it comes to receiving federal grants.
In the past, agencies had to conduct a cost-benefit analysis (value engineering) on highway projects costing more than $25 million and bridge projects tagged in excess of $30 million.
Under new guidelines courtesy of the Obama administration, states no longer have to go through the value engineering process if they are planning on spending over $50 million on a highway project and over $40 million on a bridge job.
The rule will take effect in 30 days. The FHWA said value engineering saves the federal government about $1 billion every year.
