TxDOT Guidebook for Right-of-Way Valuations and Negotiations

In fiscal year 1999, the Federal Highway Administration (FHWA, 2003b) reported that the federal government spent nearly one billion dollars on right-of-way (R/W) acquisition. Because valuations and negotiations can have such a large impact on a project’s overall success, they are becoming particularly vital parts of the right-of-way acquisition process. Successful R/W valuations and negotiations depend on three criteria: time management, cost containment, and a good relationship with the public. However, it is difficult to achieve all three objectives at once because of the complex nature of the process. While project plans, surveys, and construction have relatively finite timelines, condemnation proceedings often make property acquisition last longer than expected or desired (NCHRP, 2000). Furthermore, a series of complex statutes, rules, and regulations creates additional challenges. Given the significance of R/W acquisition and its numerous challenges, it is crucial to evaluate and undertake effective strategies for successful valuations and negotiations. In order to facilitate effective R/W valuation and negotiation by the Texas Department of Transportation (TxDOT) and its agents, this guidebook presents guidelines and documents recommended practices. Also, these guidelines are based on various reviews of the literature, research on the R/W process, analysis of databases, and interviews. They are intended for use by TxDOT’s R/W agents and outside consultants.