Construction Bulletin Number 20Construction Bulletin Number 20
|
Subject: |
Documentation of DBE/MB/WB Participation Subletting of Contract |
||
|
Category: |
Contract Administration |
||
|
Issued: |
February 23, 2004 |
||
|
Contact Person: |
Lamar Sylvester, PE |
||
|
Phone Number: |
(919) 733-2210 |
||
|
E-mail Address: |
lsylvester@dot.state.nc.us |
||
|
Issue Details: |
|||
|
Provisions are included in most highway construction contracts aimed at promoting participation by disadvantaged businesses, minority businesses, and women businesses (DBE/MB/WB) in contracts. These provisions are titled Disadvantaged Business Enterprises in contracts financed in whole or in part by Federal Funds, and Minority and Women Businesses in contracts financed by Non-Federal funds. Traditionally, DBE/MB/WB participation has been documented by Request for Subcontracts or submission by the Contractor of appropriate documentation to verify expenditures. The contract were changed in 2000 for TIP projects and in 2003 for all other projects to require the Contractor to provide the Engineer with an accounting of payments to DBE/MB/WB as documentation of DBE/MB/WB participation attained. This accounting shall be furnished the Engineer for any given month by the end of the following month. The Department does not have a means of tracking when the Contractor receives payment from the Department or when the Contractor makes payment to a subcontractor, thus assumptions must be made as to when a reporting of payments to DBE/MB/WB are due. The Contractor would normally receive payment from the Department within three to four weeks after the end of an estimate period. The contractor is required to make payment to their subcontractors and material suppliers within seven days thereafter. Subcontractors are then required to make payment to their second-tier subcontractors and material suppliers within seven days of receipt of payment from the contractor. Normally payment for work performed or materials supplied during an estimate period would be made to material suppliers and subcontractors at all levels within six weeks after the estimate period. Therefore, payments made to DBE/MB/WB firms should be reported within two and one-half months. The Resident Engineer should withhold money due on the next partial pay estimate for work performed by the contractor or a subcontractor who fails to report payments made to DBE/MB/WB firms. Contracts that require the Contractor to provide the Engineer with an accounting of payments to DBE/MB/WB do not require the Contractor to submit DBE/MB/WB Subcontract Certification, Form RS-1-D nor copies of executed subcontract agreement to document DBE/MB/WB participation. In addition, the Contractor is not required to submit a Request for Subcontract, Form RS-1-A solely for the purpose of documenting DBE/MB/WB participation. For example, a Request for Subcontract, Form RS-1-A is not required when the work is limited to hauling or transportation material. |
|||
|
References: |
Standard Specifications Article 108-6, Subletting of Contract Project Special Provisions, Disadvantaged Business Enterprise Project Special Provisions, Minority And Women Businesses Project Special Provisions, Retainage And Prompt Payment Construction Bulletin Number Five |
||
|
Illustrations: |
None |
||
This Construction Bulletin has been issued by the NCDOT Construction Unit to clarify, discuss, interpret and provide guidance for contract administration issues related to NCDOT construction contracts.