In order for federal or state funds to be spent on a transportation project in partnership with a LG, a written contract must first be executed between TxDOT and the LG. An Advance Funding Agreement (AFA) is the form of contract most frequently used for development of jointly funded projects with TxDOT and LGs. The AFA specifies whether the LG or TxDOT is performing each stage of the work for the project or program. For all activities performed by the LG, TxDOT maintains an oversight responsibility. TxDOT’s district offices are the primary points of contact for the LGs throughout the project development process, although the TxDOT Transportation Planning and Programming Division (TPP) will provide oversight for non-construction projects with an MPO acting as the LG. Details of the AFA procedures are contained in of this chapter of this Manual.

Many contracting requirements depend largely upon the funding source for the LG project. Projects may include federal, state, LG or even private funds. Federal funds impose specific requirements. State funds may impose different requirements. Both federal and state requirements will apply if a contract involves federal funding. State requirements will prevail if the contract involves only state and local funding. If a project involves any federal or state monies, applicable federal or state requirements take precedence over local contracting requirements. Typically, the most restrictive requirement prevails in order to ensure compliance with all.

The Manual provides guidance on a wide variety of project delivery methods available to TxDOT and LGs. This document provides information related to TxDOT district and division responsibilities associated with the administration and oversight of highway improvement contracts and related transportation projects let or administered by the LG as well as non-construction projects and/or programs. Available project construction delivery methods include those allowed by law, which may include design-bid-build, design-build and construction manager/general contractor. Nearly all LG projects are design-bid-build.