MnDOT requirement
MnDOT requires a Value Engineering Study to be conducted on projects with TPCE approaching or over $20M. This TPCE is lower than the thresholds than the Federal Regulations. Refer to VE tech memo.
In the case of Federal-aid design-build projects meeting the above project cost threshold criteria, a VE study must be performed prior to the release of the Request for Proposals document.
Federal regulations
23 CFR 627 Value Engineering (04/01/2013) was published on September 5, 2014. (Docket No. FHWA-2013-0039).
Final Rule modifies Federal regulation, Title 23 Code of Federal Regulation (CFR) part 627, to reflect the revisions made in Federal law (Section 1503(a)(3) of Moving Ahead for Progress in the 21st Century Act, MAP-21).
The changes to the regulation are:
- Increases the project thresholds for required VE analyses to:
- Projects on the National Highway System (NHS) receiving Federal assistance with an estimated total cost of $50,000,000 or more
- Bridge projects on the NHS receiving Federal assistance with an estimated total cost of $40,000,000 or more
- Removes the VE analysis requirement for projects delivered using the design/build method of construction
- Provides VE analysis guidance for projects delivered using the construction manager/general contractor (CM/GC) method of project delivery
Projects are defined as "a portion of a highway that a state proposes to construct, reconstruct, or improve as described in the preliminary design report or applicable environmental document". A project may consist of several contracts or phases over several years and applies to Design-Build projects as well.