Advance Funding Agreements
In order for TxDOT to spend funds or other resources on a transportation project with a local government, both parties must first execute a written contract. An Advance Funding Agreement (AFA) in which TxDOT and the local government allocate participation is the most frequently used contract for project development. TxDOT and a local government negotiate an agreement that determines which party is responsible for conducting work, providing funding or contributing items in-kind.
TxDOT or the local government may be financially responsible for all or a portion of the work regardless of which party is responsible for performing the work.
Examples
Examples of work included in an AFA are:
- Acquiring right of way
- Drafting engineering plans
- Providing for utility relocation
- Performing environmental studies and environmental mitigation
- Supplying construction services
- Providing maintenance of a transportation project