To develop an AFA for a specific project, the LG staff works with TxDOT district staff. The Contract Services Division (CSD) is the central TxDOT office that prescribes the legal form and content for these agreements and supports the district staff in contract matters. For non-construction projects, the LG, TxDOT district and CSD may also work with TPP or other TxDOT divisions/offices during development of the AFA.

In the AFA, TxDOT and a LG negotiate an agreement determining which party is responsible for conducting work, providing funding or contributing items in-kind. The parties then follow the terms of the agreement and carry out each of the tasks assigned to them by the AFA. Under the contractual commitments established in the AFA, both TxDOT and the LG must follow their rules and regulations applicable to that type of work, as well as federal or state laws and requirements that may apply.