Section 5: Cost Recovery and Accounting
Federal Participation
FHWA may choose not to contribute to the additional costs
related to hazardous materials if due diligence was not observed
in assessing potential impacts within the project limits during
the planning stages of a federal-aid project. Federal participation
in preventive action costs depends upon a solid defense of the actions
taken when unanticipated contamination is encountered. This defense
includes a thorough record of all circumstances and actions taken,
including coordination with regulatory authorities, worker/public
safety plan actions and step-by-step preventive action measures.
Once generated, this record will serve as a valuable management
tool and may be useful for a variety of accounting issues.
Cost Accounting
Claims, litigation and expectations of cost recovery from
affected parties are all possible results when a contaminated site
is discovered. For these reasons, and also to make management decisions related
to statistical data collection, it is essential to track the costs
that can be attributed to hazardous material issues on a site. One
effective method is to assign a unique numbering system for paying
items related to the hazardous material on site.
Responsible Parties
In some past cases, TxDOT has successfully identified, contacted
and made arrangements with responsible parties for cost recovery
or handling hazardous materials without litigation. These arrangements
have a greater chance of success if negotiated prior to letting.
Arrangements can still be initiated when unanticipated contamination
is encountered during construction.
If possible or practical, identified responsible parties should
be contacted before costs are incurred. The responsible parties
may be more willing to make arrangements if allowed to participate
in developing preventive action measures. Additionally, if the responsible
parties are undergoing other corrective action, they may have the
resources to handle the contamination within an acceptable time
frame.