In acquiring federal property, the federal agency may request property adjustment work. Since the state cannot condemn land owned by a federal agency, acquisition by negotiation is mandatory. If negotiation is unsuccessful, the project must be altered to eliminate the federal right of way parcel. TxDOT policy allows property adjustment work if it is necessary due to the highway improvement. There should be no conflict with applicable state law. If property adjustments are required, the parcel is appraised and the approved value is the basis for determining the limits of state cost participation.

When adjustments are necessary, there should be an agreement with the federal agency regarding adjustments to be performed. If further assistance is needed, contact the ROW Program Office.

To obtain federal participation, adjustment work must be included in the construction contract, which requires Design Division approval. Alternately, adjustment work may be accomplished by preparing a separate PS&E package. The PS&E needs to bear the signature of the authorized federal agency representative. The cost of such adjustment work is charged to the right of way project.