Minnesota Department of Transportation

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Project development

Engineering process | Planning

Cost-Effectiveness Policy/Benefit-Cost Analysis

Cost-Effectiveness Policy process

Purpose

The Cost-Effectiveness Policy promotes effective investment decision-making based on a balanced consideration of both quantitative cost-effectiveness goals and qualitative factors.

When to use this subject

Any MnDOT project requiring an Environmental Impact Statement (EIS), an Environmental Assessment (EA), or an Environmental Assessment Worksheet (EAW) is subject to the Cost-Effectiveness Policy.

How this subject fits into the overall project development process

You should carry out the benefit-cost analysis supporting cost-effectiveness determination during the alternatives analysis in the planning phase of project development, concurrent with the development of the environmental document. You will continue to analyze these costs throughout the life of the project.

Summarize the results of the benefit-cost analysis and report them in the Evaluation of Alternatives section of the environmental document, with a statement that the full analysis is available from the District Project Manager.

Organizations involved

  • MnDOT:
    • District Planners and Traffic Engineers
    • Office of Transportation System Management
    • Project Managers
  • Engineering and Environmental Consultants