How strategic grant monitoring and construction management can help your ARPA funded projects succeed

American Rescue Plan Act overview

Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) allocated $350 billion in pandemic-relief aid to states, territories, tribes and local governments. The main goal of the ARPA is two-fold; to invest in long term capital projects to enhance a community and increase financial stability for state and local government coming out of COVID-19 to refill reserves and cover temporary operating shortfalls. On the capital project side, the funds can be used for investments in water, sewer, broadband infrastructure and parks and recreation beautification.

Recipients of ARPA funds must obligate the funds by Dec. 31, 2024, and spend the funds by Dec. 31, 2026. Funds not obligated or spent by those two dates must be returned to the Treasury.

Trends we are seeing

In response to this funding opportunity, there have been a number of capital projects set in motion across U.S. communities. This has caused strain on existing teams and resources due to the challenges caused by numerous ARPA funded projects being performed at the same time on very tight schedules to meet the deadlines mentioned previously.

With multiple projects underway, communities and grant recipients are finding it difficult to effectively track progress and costs. Due to this, we are seeing the following trends and challenges in the marketplace:

• Increased project complexity: Varying project sizes and funding needs and numerous stakeholders involved (contractors, city officials, community members, etc.)
• Lack of monitoring: Progress across multiple projects is proving to be difficult to track and financials are unclear
• Inadequate reporting: There’s been increased scrutiny from community stakeholders and a need for capital sustainability and visibility

The importance of planning and monitoring

Community leaders have a responsibility to their constituents and citizens to ensure the success of these projects. Quality construction management plays an important role in overall APRA fund management success, and leaders should ask two questions as the projects are undertaken: