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Federal-aid Fund Management Tools

Advance Construction and Partial Conversion of Advance Construction

The Use of Advance Construction in Financing Transportation Projects
This briefing paper provides transportation industry professionals with a synthesis of practices across the country relating to the use of the Advance Construction technique. Advance Construction is one of several Federal-aid fund management tools designed to provide states with greater flexibility in managing Federal-aid highway funds. The primary benefit of AC is that it allows states to accelerate transportation projects using non-Federal funds while maintaining eligibility to be reimbursed with Federal-aid funds at a later date. The use of AC across states varies widely. The briefing paper presents historical trends in AC usage, identifies current practices, benefits, and challenges, and provides observations regarding future use and administration of the Advance Construction technique.

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The FHWA Guidance section on "Eligible Projects" has been superseded by a SAFETEA-LU amendment to 23 U.S.C. 115 and the subsequent change in FHWA regulations.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.

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