Contract Administration
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The goal of contract administration is to ensure the contract is performed satisfactorily and the responsibilities of both parties are properly discharged.


The primary objectives of contract administration are:

  • Verify performance for the purpose of payment
  • Identify “material breach of contract” by assessing the difference between contract performance and material non-performance
  • Determine if corrective action is necessary and take such action if required


In order to achieve the goal and objectives of contract administration, a non-construction project must have:

  • Well-defined scope of work
  • Clear communications through project meetings
  • Detailed plan for monitoring the progress of the project
  • Complete documentation of the project work elements


The local government is responsible for execution of all project elements in accordance with the Advance Funding Agreement (AFA) and applicable federal and state laws and regulations.

The TxDOT project manager will provide oversight and contract administration for invoices and work progress. Four tools may be utilized by the local government and TxDOT to monitor project progress:

  • Monthly progress reports
  • Project meetings
  • Invoices/progress payments
  • Site visits

The local government must retain records as specified in the AFA. The applicable TxDOT district must also retain records as specified in the AFA and must ensure that the local government is maintaining the appropriate records to aid both TxDOT and Federal Highway Administration during project audits.


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