Right of Way Improvement Sales

TxDOT routinely acquires right-of-way (ROW) for road expansion and new construction projects. Once all legal requirements of the purchase have been met and clear title has been secured, the department begins the process of contracting with an individual or firm to remove all structures from the parcel. Any items situated on the parcel, such as buildings, mobile homes, trees, miscellaneous structures, etc., are considered "improvements" to the ROW and are disposed of through competitive bidding as a positive or negative ROW improvement sale.

The Texas Facilities Commission (TFC) oversees the positive ROW improvement sale disposal process, which occurs when a third party pays TxDOT for an improvement and removes all improvements for a parcel, i.e. mobile homes and houses on piers or beams. TFC solicits, opens and tabulates the bids, awards the sale, and collects payment. Bidders are required to furnish a bid deposit with their bid. If a bidder does not receive an award, his or her bid deposit will be returned. The successful bidder's bid deposit will be returned, along with a Bill of Sale, once the improvement is cleared to the district's satisfaction and payment has been received. A performance bond may be required. The bond must be provided before any work can begin and will be returned upon satisfactory completion of the contract.

All negative ROW improvement sales constitute a purchase of service and, therefore, are handled by the department's purchasing department through TFC delegated authority. A negative ROW improvement is any improvement made in which TxDOT pays a party to remove them form a parcel, such as residential homes with a slab foundation. Any negative ROW improvement sale over $25,000 requires the vendor to post a payment bond in the amount of the contract. Additionally, if the contract is over $100,000, the vendor must also post a performance bond in the amount of the contract. The bond(s), along with a certificate of Insurance, Texas Department of Health 10-day notification forms, city permits, etc., must be furnished after the award and before any demolition work can begin.

Individuals interested in receiving bids for positive and/or negative sales should contact the district and request to be added to their bidder's list for positive and/or negative ROW improvement sales.

Please note a negative ROW improvement sale over $100,000 may require the department to solicit bids from only the bidders registered on the state's Centralized Master Bidder's List (CMBL). In order to ensure you will receive a bid, you are encouraged to register on the CMBL under class and item number's 910-38 and 968-66.

If you have any questions regarding the ROW improvement sale disposal process, please contact us. We will gladly answer any questions you may have.