Greater Use of Value Engineering Has the Potential To Save the Department of Transportation Millions in Construction Costs

Gao ID: RCED-85-14 November 2, 1984

GAO discussed the potential of value engineering (VE) to reduce costs and the extent that it is currently used in Department of Transportation (DOT) administrations with major construction programs.

GAO found that, although DOT does not have a policy requiring that VE be used in its construction programs, two of its administrations use this method to a limited extent. DOT believes that VE can produce savings, but it has not required its use mainly because it believes that VE may negatively affect other DOT objectives, such as providing grantees maximum flexibility to implement construction programs. GAO concluded that a flexible VE policy would be consistent with DOT objectives.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Sarah F. Jaggar Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 275-1000


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