Section 2:
CO Approvals

TxDOT Approval Authority

CO approval authority is based on the
Standard Operating Procedure No. 01-22 (SOP)
showing that the District Engineers (DEs) will delegate signature authority in accordance with policy.
Refer to the
Delegation of Authority
, found on Contract Services Division webpage (internal access only). Refer to the preconstruction meeting notes for contractor personnel authorized to sign COs. When signed by the designated official, the CO is approved. Ensure that all COs are signed and sealed based on the Delegation of Signature Authority
Adhere to district policy and procedures in the review and approval of COs that may be approved at the district level.
Submit CO’s requiring Administration Approval (Chief Engineer) and signature through CST Support for review prior to completion and sending to CST Construction Section Director.

TxDIP Federal-Aid Projects

Periodically FHWA selects a list of projects that are considered Texas Division Involved Projects (TxDIP). Each TxDIP project has a
Stewardship and Oversight Plan (S&O)
that are project specific. FHWA’s involvement in the project could include responsibilities such as, approving CO’s, conducting project inspections and reviewing financial plans.
If a project is not a TxDIP project, TxDOT assumes all project oversight responsibilities per the 2025 S&O agreement. Use the FHWA
Contract Administration Core Curriculum
(CACC), related federal regulations, and Department policy to determine federal participation for time extensions and COs
.
S&O Plans may state the coordination, communication, and review or approval requirements on Major, Minor, or both types of COs. Contact your FHWA Area Engineer as required by the projects S&O plan
.
COs on TxDIP projects are categorized as either major or minor, as defined below
.
  • Major
    • The cost of the contract >20% of the original cost or by >5% million (both positive and negative).
    • Changes in contract time 30 days or more (both positive and negative).
    • Changes to the contract dates tied to Incentives/Disincentives, Liquidated Damages (LDs), or Milestones due to extraordinary circumstances
    • Changes beyond the previously authorized scope of work or changes that require work beyond the project's boundaries (limits) which may require additional environmental review or clearance. These changes may also require a Public Interest Finding(PIF)
  • Minor
    • Everything not described above.

Guidance for Federal Participation

All federally funded projects require a Federal Project Authorization and Agreement (FPAA) prior to any federal participation. FPAA approval is done prior to project advertisement and must reflect accurate project limits. For COs that change project limits, the FPAA must be updated. Coordinate with FIN-Letting Management section to update the FPAA
.
Federal-aid funds may be used to participate in COs that
are
:
  • in conformance with federal and state laws
  • allowed by the CACC and federal regulation.
  • in compliance with an FHWA policy or procedure.
For any questions, coordinate with CST or the district’s FHWA Area Engineer
.
Federal Non-Participation
Examples of COs not eligible for the federal participation are:
  • work performed prior to the "effective date" provided in the Federal Letter of Authorization
  • work performed outisde the project limits and/or involves a significant change in scope, unless the additional work is an emegergency, is to provide a transition at the existing project limits and is covered by a CST-reviewed and concurrence provided Public Interest Finding (PIF) determination.
  • routine maintenance items that are the responsibility of either the contractor or the Department. Examples: graffiti removal, culvert cleaning, worksite maintenance, etc
Examples of individual contract items not eligible for federal participation are
  • work performed by state forces or other "non-competitively bid" work.
  • significant changes in contract scope, unless covered under an approved Public Interest Finding (PIF) determination.
  • completed work that is determined not to be in substantial compliance with the contract.
  • materials that do not meet specifications (Federal participation may be allowed for the reduced price of materials determined to serve the intended purpose of the contract.
    Except
     for federal participation minor deviations at the full price of materials).
  • additional time or cost caused by un-acquired Right of Way (ROW) or incomplete utility adjustments.
  • purchase of unused contractor materials placed in state stock
    account(s)
     (If the material is subsequently used on another federal-aid project, charge the material cost to the project
    using the Notification of Material Transfer Form.
    )
  • negotiated prices that are determined to be unjustified.
  • work done for the convenience of the contractor (may be eligible for participation depending on specifics and adequate justification)
  • unaudited claim settlements, unless the audit requirement is waived in writing.
  • contract work paid through another means, such as Incidental Construction.
  • anything involving rework.
  • state-furnished materials not included in the original contract and not supported by PIF.