LRB-1281/1
ARG:wlj:rs
2007 - 2008 LEGISLATURE
March 5, 2007 - Introduced by Representatives Gottlieb, Friske, Jeskewitz,
Kaufert, Mursau, Nass, A. Ott, Owens, Stone, Townsend, Vos, Petrowski
and
Honadel, cosponsored by Senators Plale, Cowles, Darling, S. Fitzgerald,
Grothman, Kapanke, Olsen, Roessler
and Schultz. Referred to Committee on
Transportation.
AB134,1,3 1An Act to amend 84.013 (4) (a) and 84.06 (1m); and to create 84.06 (1r) of the
2statutes; relating to: engineering work for certain Department of
3Transportation highway projects.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Transportation (DOT) may prepare
plans and specifications and perform engineering work for any highway
improvement within its jurisdiction. DOT may also contract with third parties for
the performance of engineering work.
This bill requires DOT to employ value engineering for any highway
improvement project that has total project costs in excess of $5 million or that
otherwise meets criteria established by DOT. "Value engineering" means the
systematic application of recognized techniques by a multidisciplined team to
identify the function of a product or service, establish a worth for that function,
generate alternatives through the use of creative thinking, and provide the needed
functions to accomplish the original purpose of the project, reliably, and at the lowest
life-cycle cost without sacrificing safety, necessary quality, and environmental
attributes of the project. DOT must assure that a value engineering study and
analysis is performed on each applicable project. Any value engineering study and
analysis related to engineering work performed by a third-party consultant may not
be performed by the same consultant unless that consultant maintains separate and
distinct organizational separation of its value engineering and design sections. The
secretary of transportation may, for compelling reasons, waive the employment of

value engineering on a project for which it is otherwise required. DOT must annually
submit a report to the governor and legislature related to DOT's employment of value
engineering.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB134, s. 1 1Section 1. 84.013 (4) (a) of the statutes is amended to read:
AB134,2,62 84.013 (4) (a) Subject to s. ss. 13.489 (1m) and 84.06 (1r), in preparation for
3future major highway projects, the department may perform preliminary
4engineering and design work and studies for possible major highway projects not
5listed under sub. (3), but no major highway may be constructed unless the project is
6listed under sub. (3) or approved under sub. (6).
AB134, s. 2 7Section 2. 84.06 (1m) of the statutes is amended to read:
AB134,2,148 84.06 (1m) Plans. The Subject to sub. (1r), the department may prepare plans,
9estimates, and specifications and undertake and perform all surveys, investigations,
10and engineering work for any highway improvement within its jurisdiction. When
11provision has been made for the necessary funds for any such highway improvement
12and, if federal aid is to be utilized, when the project has been approved by the proper
13federal authorities, the department may proceed as provided in this section, with due
14regard to any applicable federal requirement or regulation.
AB134, s. 3 15Section 3. 84.06 (1r) of the statutes is created to read:
AB134,2,1716 84.06 (1r) Value engineering for certain projects. (a) In this subsection,
17"value engineering" has the meaning given in 23 CFR 627.3.
AB134,3,718 (b) The department shall employ value engineering for any highway
19improvement project under sub. (1m) that has total project costs in excess of $5

1million or that otherwise meets criteria established by the department under par. (c),
2and shall assure that a value engineering study and analysis is performed on each
3such project. Any value engineering study and analysis related to engineering work
4performed by a consultant under contract with the department under s. 84.01 (13)
5may not be performed by the same consultant unless that consultant maintains
6separate and distinct organizational separation of its value engineering and design
7sections.
AB134,3,108 (c) The department shall establish criteria for determining which projects, in
9addition to those having total project costs in excess of $5 million, on which the
10department will employ value engineering.
AB134,3,1311 (d) After review and for compelling reasons, the secretary may waive the
12requirement under par. (b) for any project. Any such waiver shall be in writing, state
13the reasons for the waiver, and apply only to a single project.
AB134,3,2114 (e) Annually, the department shall submit a report to the governor, and to the
15appropriate standing committees of the legislature under s. 13.172 (3), on the
16department's employment of value engineering under par. (b), the criteria
17established by the department under par. (c), and all waivers made under par. (d).
18All project information included in any report required under this paragraph shall
19be reported on both a cumulative basis from the inception of the project and on an
20updated basis for the period since the department's last report under this paragraph.
21The report under this paragraph shall also include all of the following information:
AB134,3,2222 1. The number of value engineering studies conducted.
AB134,3,2323 2. The cost of conducting the studies.
AB134,3,2424 3. The estimated construction cost of the projects studied.
AB134,3,2525 4. The total number of study recommendations.
AB134,4,2
15. The total savings that would result from all recommendations if approved
2and implemented.
AB134,4,33 6. The number of recommendations approved.
AB134,4,44 7. The total savings that resulted from the approved recommendations.
AB134, s. 4 5Section 4. Initial applicability.
AB134,4,76 (1) This act first applies to highway improvement projects for which
7engineering work is commenced on the effective date of this subsection.
AB134, s. 5 8Section 5. Effective date.
AB134,4,109 (1) This act takes effect on the first day of the 3rd month beginning after
10publication.
AB134,4,1111 (End)
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