High Risk Designation

A subgrantee may be considered “High Risk” if TxDOT determines that a subgrantee:
  • Has a history of unsatisfactory performance.
  • Is not financially stable.
  • Has not conformed to the terms and conditions of the award.
  • Is otherwise not responsible.
Special conditions and/or restrictions must correspond to the high-risk condition and must be included in the notification to the subgrantee. Special conditions and restrictions may include:
  • Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given time period.
  • Requiring additional, more detailed financial reports.
  • Additional project monitoring.
  • Requiring the subgrantee to obtain technical or management assistance.
  • Establishing additional prior approvals.
If TxDOT decides to impose such conditions, the TxDOT Project Manager will notify the subgrantee as early as possible, in writing, of:
  • The nature of the special conditions/restrictions.
  • The reasons for imposing the special conditions/restrictions.
  • The corrective actions which must be taken before special conditions/restrictions will be removed.
  • The time period allowed for completing the corrective actions.
  • The method of requesting reconsideration of the conditions and/or restrictions imposed.