Greater Use of Value Engineering Has the Potential To Save Millions on Wastewater Treatment Projects
RCED-85-85
Published: Jul 16, 1985. Publicly Released: Jul 16, 1985.
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Highlights
GAO reported on whether value engineering (VE) could be used to achieve cost reductions for wastewater treatment plants funded by the Environmental Protection Agency (EPA) by extending VE to: (1) design plans of projects costing from $1 million to $10 million; and (2) construction through the use of construction incentive clauses. VE is a method of analyzing a product or service so that its function can be performed at the lowest possible cost without sacrificing overall quality.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should revise the Federal Water Pollution Control Act to require VE review on designs of wastewater treatment projects costing more than $1 million. |
Closed – Not Implemented
|
The proposed Clean Water Act of 1986, which was vetoed by the President, did not contain provisions for VE reviews of projects costing more than $1 million. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Environmental Protection Agency | The Administrator, EPA, should revise regulations to require VE review on designs of construction grant projects costing more than $1 million. |
Closed – Not Implemented
EPA does not intend to take action because it perceives the need for congressional direction on this issue.
|
| Environmental Protection Agency | The Administrator, EPA, should revise regulations to make VE design study costs for projects costing from $1 million to $10 million eligible expenses of the construction grant. |
Closed – Not Implemented
EPA believes the allowance for planning and design provided to grantees, based on a percentage of total project costs, reflects VE costs to the extent VE has been done in the past on projects costing $1 million to $10 million.
|
| Environmental Protection Agency | The Administrator, EPA, should test the value of using construction incentive clauses by: (1) requiring their use for a period of time in EPA-funded wastewater treatment construction project contracts; (2) evaluating the results achieved; and (3) assessing whether such a technique is effective on a permanent basis in controlling costs. |
Closed – Not Implemented
EPA does not intend to test the value of requiring construction incentive clauses because it believes voluntary efforts are more appropriate.
|
| Environmental Protection Agency | The Administrator, EPA, should promote the benefits of identifying cost-saving measures through the use of construction incentive clauses among applicable EPA, state, and grantee staff and contractors during the test period. |
Closed – Not Implemented
EPA does not intend to test the value of requiring construction incentive clauses because it believes voluntary efforts are more appropriate.
|
| Environmental Protection Agency | If the results are positive, the Administrator, EPA, should require construction incentive clauses on a permanent basis. |
Closed – Not Implemented
EPA does not intend to test the value of requiring construction incentive clauses because it believes voluntary efforts are more appropriate.
|
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Topics
Construction costsConstruction grantsCost controlGrant administrationGrants to local governmentsValue engineeringWastewater treatmentWastewater treatment plantsEngineeringConstruction contracts