ROADS/BRIDGES: FHWA loan requirement a little less stringent

Sept. 5, 2014

State DOTs will no longer have to conduct cost-benefit analysis on certain projects

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.

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