49 CFR, Part 26.29 requires DBE and non-DBE subcontractors to be paid promptly. TxDOT interprets prompt payment to mean the prime contractor will pay each subcontractor for satisfactory performance of its contract no later than ten days from receipt of each payment the prime contractor receives from TxDOT. The prime contractor will pay any retainage on a subcontractor’s work within ten days after satisfactory completion of all the subcontractor’s work.

The prompt payment clause is referenced in TxDOT’s Special Provision 009-009 Measurement and Payment. The prime contractor should include in its subcontracts the same prompt payment provision.

Satisfactory completion is accomplished when:

TxDOT may pursue actions against the prime contractor for failure to execute prompt payment requirements. The penalties imposed by TxDOT may include, but are not limited to: withholding all or a portion of an estimate, suspending work, withholding project acceptance, placing prime contractor in default for breach of contract, or other actions deemed appropriate.