MOU-Construction and Financial Considerations Section

The utilities are responsible for accomplishing the design and adjustment of utility facilities regardless of the construction method selected. The following methods may be utilized as appropriate.
  • Where the work is performed independently by each utility with its own or contracted forces.
  • A cooperative joint venture among two or more utilities for the collective performance of the work. One utility compensating another for performing the work or two or more companies retaining a common contractor may accomplish this.
  • By mutual consent of TxDOT and the utility(ies), utility adjustments may be included in the highway contract. The decision to exercise this option must be made as early as possible in “The Process” and must include consideration of the following:
    • The utility adjustment design information, itemized estimate, special provisions, and specifications for constructing the utility adjustments will be included in the TxDOT contract documents.
    • TxDOT will be responsible for preparing, letting, awarding and administering the contract. Specific duties, responsibilities, and authorities concerning the inspection and acceptance of the work must be clearly defined by TxDOT in cooperation with the utility in advance of the contract letting date.
    • The TxDOT Project Construction Engineer in coordination with the Utility Construction Representative will promptly address change orders or disputes that arise and affect the utility adjustment. The intent is to resolve the construction issues or disputes at the earliest possible time to avoid escalation of costs and delay to the work completion.
    • When reimbursable utility work is included in the TxDOT contract, it must be authorized by the preparation and approval of a Utility Agreement Assembly. This assembly will be prepared by the appropriate parties.
    • When wholly or partially ineligible utility work is included in the TxDOT contract, an AFA as part of the Utility Agreement will be required. Ineligible work would include non-reimbursable betterments, utility adjustments without compensable interests or utility adjustments with partial compensable interests. Requests for AFAs should be initiated by the TxDOT Project Design Engineer and the Utility Liaison, and included in the PS&E submission. The AFAs will then be processed in the Design, Finance, and General Services Divisions.
Utilities may be eligible for State cost participation on their facility adjustments. The “eligibility ratio” is the relationship between real property interest held within the proposed highway right of way and the total highway right of way occupied by the utility facility. Determination of this eligibility ratio will be made by Right of Way personnel subject to approval by the ROW Program Office. An exception to this determination of eligibility exists for the Interstate Highway System on which utility adjustments are normally 100% reimbursable or Toll Projects.
Utilities may elect to upgrade their facilities in conjunction with adjustments for highways. Cost of these facility betterments performed at the option of the utility will be borne by them. Betterments caused directly by the highway project or by the implementation of updated industry standards will be eligible for reimbursement.
The value of all salvage materials on reimbursable adjustments must be credited to TxDOT.