ROADS/BRIDGES: FHWA loan requirement a little less stringent

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

News September 05, 2014
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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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