Value Engineering Has the Potential To Reduce Mass Transit Construction Costs
RCED-83-34
Published: Dec 29, 1982. Publicly Released: Dec 29, 1982.
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Highlights
Millions of dollars in federal, state, and local construction funds can be saved by applying value engineering (VE) to the designs of construction projects funded by the Urban Mass Transportation Administration (UMTA). GAO conducted this review to determine: (1) how effective VE would be when applied to heavy rail and bus construction projects; and (2) whether VE could produce greater savings than the UMTA peer review on one aspect of a proposed subway station.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to appoint a full-time program manager for VE activities who reports to the UMTA Administrator when implementing the program. |
Closed – Not Implemented
UMTA believes that it does not have the resources to implement this recommendation.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to implement a VE program for construction projects. |
Closed – Implemented
The Secretary of Transportation has approved a contract that provides for developing specific VE guidelines.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to apply VE early in a project's design on all UMTA-funded construction projects exceeding $2 million. |
Closed – Not Implemented
VE will be used on projects exceeding $150 million. This recommended change will not be adopted.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to share with the grantee the cost and savings of VE in proportion to its participation in project costs when implementing the program. |
Closed – Not Implemented
The Office of the Secretary approved a proposed contract for development of VE guidelines. UMTA will obtain the benefits. It has no intention of sharing the benefits with grantees.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to ensure that VE is performed by a private architectural/engineering firm not participating in the project when implementing the program. |
Closed – Implemented
The Office of the Secretary approved a contract for development of VE guidelines. VE work will be done by firms not participating in the project.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to retain final authority for approving and disapproving VE recommendations when implementing the program. |
Closed – Not Implemented
UMTA believes that the grantee is in the best position to determine which VE recommendation should be implemented.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to ensure that construction contracts include a VE incentive clause when implementing the program. |
Closed – Implemented
DOT issued guidance in April 1987 with the release of the DOT Value Engineering Order.
|
| Department of Transportation | The Secretary of Transportation should direct the Administrator, UMTA, to limit its peer review program to the conceptual and informational phases of major construction projects and complement it with VE during the early design and construction phases of such projects. |
Closed – Implemented
DOT issued guidance in April 1987 with the release of the DOT Value Engineering Order.
|
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Topics
Construction costsCost controlFederal fundsMass transit fundingUrban transportationValue engineeringSubway trainsEngineersRailEngineering