How state and federal money combine for highway projects

(a) Every agreement for the engineering or construction of federal-aid highways or for the acquisition of rights-of-way for these highways shall be made on behalf of the State by the director of transportation. Section 103D-309 shall apply only to that portion of the price that is payable out of local funds. As to that portion of the price that is payable out of federal-aid funds, the agreement is that the State will pay the contractor only out of federal funds actually received for that portion of the project and is not a general agreement on the part of the State to pay that portion out of any other funds. Each agreement shall be deemed to contain a provision to that effect whether specifically included or not. (b) Any moneys appropriated for the State's share of the price or any moneys in the state highway fund created by section 248-8, in the discretion of the director, may be drawn upon to advance the federal share of payments: (1) Earned by contractors on federal-aid projects for completed portions of the work; or (2) Due the owners for property conveyed by them, where the necessary federal-aid moneys are not immediately forthcoming; provided that the appropriation or fund, as applicable, shall be reimbursed for the advances when federal-aid moneys are received.