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Federal-aid Fund Management Tools

Advance Construction and Partial Conversion of Advance Construction

FHWA Order 5020.1 - Repayment of Preliminary Engineering Costs
This Order provides guidance on the repayment of Federal-aid funds expended on preliminary engineering projects when reasonable progress has not been made toward right-of-way acquisition or construction and it clarifies when FHWA may grant time extensions.

FHWA Guidance on Section 308 of the NHS Act: Advance Construction of Federal-aid Projects
The FHWA Guidance section on "Eligible Projects" has been superseded by a SAFETEA-LU amendment to 23 U.S.C. 115 and the subsequent change in FHWA regulations. All categories of Federal-aid highway funds are now eligible for advance construction. Additionally, the restriction that a state must obligate all of its allocated or apportioned funds, or demonstrate that it will use all obligation authority allocated to it for Federal-aid highways and highway safety construction, prior to the approval of advance construction projects, has been eliminated. This clarification was announced in the Federal Register (Docket No. FHWA-2007-0020) on August 26, 2008.

Chapter 2 (Section 2.1) of FHWA's Innovative Finance Primer published in April 2002 discusses AC and PCAC.

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