Chapter 7: Contract Letting

Section 1: Overview

Overview

Prior to letting a construction project, a DBE project goal will be set by TxDOT. For projects with a specified percentage DBE goal, prime contractors make a commitment to meet the goal by signing the proposal and submitting a bid.

Pre-Estimate Actions

It is recommended the prime contractor take the following pre-estimate actions prior to beginning an estimate for a specific project:
  • Review the contract documents for the DBE goal on the project.
  • Determine items which may be subcontracted and quantify based on estimated dollar amounts.
  • When practical, divide large (scope or quantity) items into potential smaller subcontracting opportunities and quantify.
  • Look for second tier subcontracting opportunities and quantify.
  • Quantify potential material supply contracting opportunities. Determine the allowable DBE participation for material supply.
    • 100% for materials or supplies purchased from a DBE manufacturer.
    • 60% for materials or supplies purchased from a DBE regular dealer.
    • 100% for fees or commissions purchased from a DBE packager, broker or manufacturers' representative.
  • Determine the likely total DBE participation from all of the above items and compare to TxDOT’s DBE contract goal.
  • Review the TUCP directory for the list of certified DBEs.