Utility work included in the highway construction contract may include items that are ineligible for TxDOT cost participation. Therefore, it will be necessary for the utility to submit the estimated ineligible costs through an Advance Funding Agreement For Voluntary Utility Relocation Contributions On State Highway Improvement Projects ( ) with TxDOT

before

letting as required by Advance Funding Agreement For Voluntary Utility Relocation Contributions On State Highway Improvement Projects. A statement should be added to the PS&E, in that section where utility items are addressed, stating that the ineligible utility items are financed by an AFA with the utility.

The utility will also contribute funds with the appropriate

percentage

of engineering and construction charges for the highway construction cost, which also applies to the utility construction cost.