Sec. 92.36 (7) Procurement

This section encourages the use of value engineering clauses in contracts for construction projects of sufficient size to ensure reasonable opportunities for cost reductions. Grantees will find this section of 45 CFR Part 92 useful in maintaining reasonable and allowable costs.

Grantees and subgrantees are encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.

"Sec. 92.36 (7) Procurement." 45 CFR Part 92 Uniform Administrative Requirements for Grants and Cooperative Agreements to State, Local, and Tribal Governments. 2006. English.

Last Reviewed: April 2008

Last Updated: August 4, 2015