All construction by a public entity using board funds shall be done by advertisement, competitive bid and contract, except:

(1) Utility and railroad relocations and adjustments; and

(2) Installation of traffic control devices.

If federal funds are included in the project, the negotiated contract shall include the applicable provisions of federal highway administration policies and procedures prescribed in 23 C.F.R. 140, 23 C.F.R. 645 and 23 C.F.R. 646, Federal Aid Policy Guide.

All projects using board funds shall be planned, designed, and constructed under the supervision of a professional engineer registered in the state of Washington.

The current edition of the WSDOT/APWA Standard Specifications for Road, Bridge, and Municipal Construction shall be included in any contract using board funds.

Value engineering studies shall be required in accordance with the policy adopted by the board.

All board funded projects shall be prepared using currently applicable design standards.

For the purpose of allocating funds for the freight mobility strategic investment program, the board shall allocate the first fifty-five percent of funds to the highest priority projects, without regard to location. The remaining funds shall be allocated equally among three regions of the state pursuant to RCW 47.06A.050.

The board will implement reasonable controls on project development as it deems necessary to allocate funds within the program funding level to prioritized projects.

The lead agency must begin work on a project within twelve months of the date the board approves the project, unless the board grants an extension. To determine if work has begun, the board will assess the project progress as compared to the information provided the board when the project was authorized for funding. If project activity has not started and it appears the project is falling behind the proposed schedule, the board may review the project status to determine if board funds should be withdrawn from the project and reallocated to another proposed project. The board may grant an extension if, in the board's opinion, the project will begin work shortly after the original twelve-month period has elapsed. For purposes of this section, "begin work" means the date that a contract is advertised.

The board will authorize freight mobility project approvals by phase for the purpose of controlling project expenditures and assuring that projects experiencing delay will not unduly tie up freight mobility funds. The three phases are design, right of way, and construction. Each phase normally will be funded by separate board approvals on forms provided by the board.

Increases in freight mobility funds will not be available.

To assure that freight mobility projects remain on schedule, the board will monitor the project progress based on at least semi-annual reports and reimbursement payments on the project.