Short answer
Under Section 428 alternative procedures, FEMA funds large permanent work projects on a fixed, capped estimate instead of actual costs. You get more flexibility: less itemized cost tracking, funds you can move across all your alternative procedures projects, and excess funds you can keep for other eligible uses. It is available only for large projects.
<table class="pt-table"><thead><tr><th>Consideration</th><th>Standard procedures</th><th>Alternative procedures</th></tr></thead><tbody><tr><td>Funds</td><td>Actual cost; no excess funds kept; funds only for the work in each project</td><td>Fixed cost; excess funds may be used; funds can move across all alternative procedures projects</td></tr><tr><td>Tracking</td><td>Track costs and work by work item and project</td><td>Track only total costs; show work relates to the approved scopes</td></tr><tr><td>Scope changes</td><td>FEMA approval needed for any change; track costs of changes</td><td>Approval only for buildings 45+ years old, ground disturbance, or work in or near water; no cost tracking for changes</td></tr></tbody></table>
Under alternative procedures you track total costs for all alternative procedures projects together, and show that the work relates to the approved scopes of work, rather than tracking costs by work item and project.
Watch out · Govstar practitioner advice
The flexibility comes with a hard ceiling: if actual costs run over the fixed amount, FEMA pays nothing more. It suits applicants confident in their estimate and their ability to control costs.