FHWA Major Project Delivery Process
For Federal funding to be authorized for the construction of Major Projects, the Project Sponsor must demonstrate to the FHWA that the project has been carefully planned out, i.e., costs have been estimated as accurately as possible; risks have been carefully considered and mitigated; funding requirements and strategies have been clearly defined; and project roles, responsibilities, and processes have been identified.
Through the different phases of project delivery, Project Sponsors are required to submit financial and management plans and are subject to undergo various FHWA review processes before Federal funding can be released for project construction. The FHWA Major Project requirements include:
- Cost Estimate Review
- Financial Plan
- Project Management Plan
The timeline shown below identifies the milestones for the three requirements as part of the overall project delivery process as it extends from planning to final design to construction for major projects regardless of contracting method.
FHWA Major Project Requirements Timeline
*All Initial Financial Plans (IFPs), Financial Plan Annual Updates (FPAUs), Project Management Plans (PMPs), and PMP Updates must be submitted to FHWA for review and approval unless otherwise documented in an executed State DOT/FHWA Stewardship and Oversight Agreement.
Timeline of these phases in project development: NEPA Process (Preliminary Design), Final Design, Construction, and Closeout, and in which phase Cost and Schedule Risk Assessments (CSRAs), Financial Plans, and PMPs are recommended or required.
CSRAs: CSRAs are recommended in the NEPA phase. Complete a CSRA workshop and prepare report for FHWA’s review prior to the NEPA Decision. A CSRA is suggested for high-risk Major Projects (as determined by FHWA). Complete a CSRA for Preferred Alternative. CSRAs are required during Final Design in the pre-construction phase. Complete a CSRA workshop and report to FHWA for review prior to approval of IFP. This is required for all Major Projects. Toward the end of Final Design and during Construction, it is recommended that additional CSRA workshops and updates may be needed to support Financial Plan Annual Updates. It is also recommended that the Project Team should evaluate major projects for additional CSRA workshops or CSRA updates if significant project changes occur or if there is more than one year between the CSRA and IFP submittal.
Financial Plans: An IFP* must be submitted to FHWA for review and approval during Final Design, after the CSRA report is submitted. This is required prior to first authorization of Federal funds for construction. In situations where there are no Federal funds for construction, but the project receives Federal financial assistance, the IFP must be approved prior to the Notice to Proceed for construction. During Construction and into Closeout, FPAUs* must be submitted to FHWA for review and approval by the annual deadline established by the FHWA and Project Sponsor until construction is completed (substantial completion has been reached and project is open to traffic). As part of the FPAU review, FHWA will evaluate the project and associated PMP to determine if a PMP Update is necessary.
Project Management Plans (PMPs): Submit PMPs* to FHWA for review and approval during Final Design. PMP approval is required prior to or simultaneous with approval of the IFP. During Construction, if required, submit PMP updates* to FHWA for review and approval. The PMP should be updated appropriately throughout the life of the project as necessary. Any significant project changes may require updates to the PMP.