(1) Subject to the requirements of 23 C.F.R. 1.3 and if requested by a local highway authority that is the sponsor of the federal-aid highway construction project, the department shall allow a local highway authority to be an additional contracting party for a federal-aid highway construction contract on a class B or C road along with the department.
(2) If a local highway authority makes a request to be an additional contracting party under Subsection (1), the department may include the local highway authority as an additional bondholder or obligee on the performance bond.
(3) Notwithstanding the provisions of this section, the department shall have the final authority to make decisions relating to a federal-aid highway construction contract on a class B or C road.