Subcontract Agreement
The prime contractor must incorporate the following TxDOT
provisions in all subcontract agreements or material purchase agreements:
- Disadvantaged Business Enterprise in Federal-Aid Contracts (000-394)
- Special Provision Measurement and Payment (009-009)
- Contract Assurance (49 CFR, Part 26.13)
The prime contractor should review these provisions with the
DBE.
It is considered a best practice to include language into
the subcontract regarding the ability of a DBE to perform a CUF.
Advise the DBE that it is expected to manage, supervise, and perform
its work, with its own organization and resources. A DBE’s failure
to perform a CUF is considered by TxDOT as a valid cause for termination.
For more information regarding the CUF requirements, please refer
to Chapter 6 of this Guide and 49 CFR, Part 26.55.