Procedures
Use the following procedures in initiating and processing contractor defaults.
Prepare the
letter (10-day notice). Submit to
for review. Upon approval from CST, send the letter to the contractor and surety (if a surety performance bond is applicable). Enter the Intent to Default date into in SiteManager’s key date.
Begin the 10-calendar-day period on the date the contractor signs the certified mail receipt or the date of the “reply back”, email.
If the certified letter to the contractor is returned or the return receipt is not received, note this information in the DWR. Make the period effective 10 calendar days from the date the contractor and surety (if a surety performance bond is applicable) receive notification by email and delivery attempt of the certified tracking number.
Do not default the contractor if work is resumed and a concerted attempt is made to correct the problem within 10 calendar days.
Prior to the 10th day, the district should prepare the
and submit to
for review. CST will provide the approval of the letter in an email response to the district with the instructions listed below, then send the letter to the contractor and surety (if a surety performance bond is applicable).
- enter the default date into SiteManager’s critical dates.
- perform a final contractor evaluation of the contractor (a meeting is not required for this evaluation).
- enter the final evaluation score into SiteManager.
Once declared in default, CST will notify Finance to issue an administrative hold. District will need to continue working day charges and process zero-dollar estimates. The original prime must leave traffic control in place until TxDOT or the Surety can provide devices to replace those required on the project. No further project direction should be had with the prime, except for TCP issues. If necessary, perform work using TxDOT resources in order to maintain safety for the traveling public. Establish a state force account to track costs associated with this work to properly charge the surety. CST will coordinate with the district and surety from this point forward.
The contractor can return to the project after being defaulted to remove equipment and materials they own. They cannot remove MOH that has been paid, or damage work that has already been paid for.