Overview

The prime contractor shall not terminate for convenience, in whole or part, a DBE subcontractor listed on the UP without the written concurrence of TxDOT. This includes, but is not limited to, instances in which a prime contractor seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an affiliate, a non-DBE firm, or with another DBE firm. Unless consent is provided, the prime contractor will not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE subcontractor.
Good cause for termination of the DBE includes, but is not limited to, the following circumstances:
  • The listed DBE subcontractor fails or refuses to execute a written contract.
  • The listed DBE subcontractor fails or refuses to perform the work of its subcontract in a way consistent with normal industry standards. Provided, however, that good cause does not exist if the failure or refusal of the DBE subcontractor to perform its work on the subcontract results from the bad faith or discriminatory action of the prime contractor.
  • The listed DBE subcontractor fails or refuses to meet the prime contractor’s reasonable, nondiscriminatory bond requirements.
  • The listed DBE subcontractor becomes bankrupt, insolvent, or exhibits credit unworthiness.
  • The listed DBE subcontractor is ineligible to work on public works projects because of suspension and debarment proceedings pursuant to 2 CFR, Parts 180 and 1200 or applicable state law.
  • The prime contractor has determined that the listed DBE subcontractor is not a responsible contractor.
  • The listed DBE subcontractor voluntarily withdraws from the project and provides written notice of its withdrawal.
  • The listed DBE firm is ineligible to receive DBE credit for the type of work required.
  • A DBE firm owner dies or becomes disabled with the result that the listed DBE contractor is unable to complete its work on the contract.
  • Other documented good cause that the prime contractor determines may compel the termination of the DBE subcontractor.
Good cause does not exist if the prime contractor seeks to terminate a DBE subcontractor it relied upon to obtain the contract so that the prime contractor can self-perform the work for which the DBE subcontractor was engaged or so that the prime contractor can substitute another DBE or non–DBE subcontractor after contract award.