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.