Txdot Advance Funding Agreement

A local government can finance and TxDOT can accept funds for the construction of public roads. ยง 222.051, 222.052, 222.053. The MAFA/LPAFA system is an efficient contract system that simplifies most local project agreements and significantly reduces their physical size and processing time. It also forms the basis of the provisions contained in the traditional “long” AZAs described below. The APAPA also determines which party makes available which resources, such as the country or funding required for a project. The party responsible for the performance of the work may or may not be the party responsible for the remuneration of the work. The LPAFA does not contain general conditions of sale of the contract that have been included in the MAFA. If there are exceptions to the MAFA for a particular project, the LPAFA provides for those exceptions. In order for TxDOT to spend funds or other resources on a transportation project with a local government, both parties must first enter into a written contract. An Advance Financing Agreement (AFA), involving TxDOT and the local government, is the most widely used contract for project development. TxDOT and a local government negotiate an agreement defining which party is responsible for carrying out the work, providing financial resources or supplementing benefits in kind. TxDOT uses two different types of long-term contracts for situations where the LG has not implemented the MAFA/LPAFA system.

Standard long-form contracts comply with MAFA/LPAFA and contain provisions that are essentially identical to MAFA/LPAFA provisions. Non-standard long form agreements continue to be accepted by TxDOT, but are not preferred. Long-form agreements are explained in more detail in the LGPM guide. The term “pre-financing agreement” is used throughout the Local Government Project Manual and Management (LGPM) as an umbrella term for a large number of joint funding agreements between TxDOT and LGs. Some specific types of contracts included in the AFA are as follows: TxDOT has a standard contractual system that simplifies the majority of local project agreements and significantly reduces the volume and processing time. These include a Master Advance Funding Agreement (MAFA) that sets the terms and conditions of the relationship and cites federal and state laws governing agreements with local governments. If the volume of work, funding or time changes significantly, the borough prepares an amendment to the AFA that sets out the change and the reason for the change. This is often related to a contract to modify the construction contract, but may also be necessary for non-construction projects. A change in the AFA often triggers a change order in the corresponding offer documents or the scope of services. Any changes to the scope of the project must be in accordance with TxDOT`s Change Order Policy and the Project Environmental Document. The LGPM guide contains additional information about project changes and additions. A provision of the AFA between an LG and TxDOT includes each party`s funding obligations to the AFA.

The responsibility for aid of the Federal State, the Federal State and the municipalities is defined, as is the type of aid (fixed price or fixed percentage). Each party`s financing obligation is limited to the values set out in the agreement, unless it is the party responsible for the cost overruns or an amendment to the AFA is made in writing by both parties. In an AFA, TxDOT and a local government make “typical” separate purchases for each of the tasks assigned to them by the AFA. . . .

Comments are closed.