This observation, while obvious, is nevertheless important. While value engineering has been used successfully in many transportation procurements as well as in other industries, many officials and contractors are not familiar with this approach. Because innovative technologies lack long performance histories, it is challenging to define and measure their performance compared to traditional technologies. For example, a company marketing a highway sign made from a new composite material was met with resistance in the highway community because, among other reasons, according to specifications, the sign in question was supposed to be constructed of aluminum covered with retroreflective sheeting. This example is illustrative because it is a case where a prescriptive standard by definition discourages innovation.
Procurements are often administratively burdensome and overly bureaucratic.
There are no incentives for risk-taking when bidding on or executing a project. Government project managers micromanage projects, often stifling innovation. It is difficult to convince the public sector to assume risk of any kind when public safety is felt to be at stake, and new contracting methods which allow for the use of new materials or processes are inherently risky. State legislatures often mandate lowest initial cost procurements, and hence there is no incentive to develop improved procurement procedures. This in turn makes it difficult to justify using new construction materials with a higher initial cost but lower life-cycle costs.