Relating to a grant program to fund certain railroad grade separation projects.

Contracts

• Mandatory Delegation Agreements: Municipalities receiving funds must execute a binding agreement designating TxDOT as the project manager. Legal counsel must review these for liability indemnification clauses, as the state assumes supervision.
• Procurement Shift: Construction contracts will not be let through local municipal bid boards. They will be procured via TxDOT’s system. Prime contractors must adhere to TxDOT Standard Specifications, not local public works standards.

Hiring/Training

• Contractor Pre-Qualification: Construction firms intending to bid on these projects must hold active pre-qualification status with TxDOT. A standard municipal vendor registration is insufficient.
• Project Management: Municipal engineers must be trained to interface with TxDOT District offices for oversight, rather than managing the general contractor directly.

Reporting & Record-Keeping

• Source of Funds Verification: Applicants must maintain auditable records proving the required 10% funding match comes from local, federal, or private sources (e.g., railroad contributions), as State Highway Fund monies cannot be used for the match.
• Designation Filings: The specific agreement designating TxDOT’s authority must be filed prior to the commencement of any construction activity.

Fees & Costs

• 10% Capital Match: Municipalities must budget for a minimum 10% match of total project costs in their FY2026 Capital Improvement Plans.
• Insurance Premiums: Contractors should anticipate higher insurance limits required by TxDOT (including Railroad Protective Liability) compared to standard municipal road work.