(a) Reimbursement requests under program contracts shall be submitted to the department on forms and in a manner to be prescribed by the department. Two methods of reimbursement are available to applicants. The appropriate method for the proposed project will be negotiated by both parties prior to contract execution. The two methods are as follows:

1. (1) reimbursement may be made periodically, during the progress of project development, for those portions of the project which have been completed; or
2. (2) reimbursement will be made at the time of completion of the full project.