Subcontract Approval Procedure

In accordance with
the
Standard Specification
, Article 8.2, “Subcontracting”, all subcontractors (regardless of the tier) require the Engineer's written approval prior to performing work on a contract. For further guidance, refer to the
Subcontracting and Payroll Requirements
Table (internal access only).
Obtain a signed and completed Form 2802, “Subcontract Request for Approval”, from the Prime Contractor. As a reminder (if applicable):
  • for federally funded projects:
    • Special Provisions and Form FHWA-1273 must be physically incorporated in each construction contract, all subcontracts, and lower-tier subcontracts compensated with federal-aid funds. The contractor signature on Form 2802 certifies that all required SP and FHWA Form 1273 are included in the subcontract.
      • Form FHWA-1273
        , “Required Contract Provisions – Federal-Aid Construction Contracts,”
      • Special Provision 000-003
        , “Certification of Nondiscrimination in Employment” – include in all subcontracts, at any tier, greater than $10,000.00,
      • Special Provision 000-004
        ,– include in all subcontracts, at any tier, greater than $10,000.00,
      • Special Provision 000-005
        ,– include in all subcontracts, at any tier, greater than $10,000.00,
      • Special Provision 000-002
        , “Nondiscrimination” (Include provisions of Articles 3.1 – 3.6 in all subcontracts and agreements for materials),
      • Special Provision 000-241
        , “Cargo Preference Act Requirements in Federal-Aid Contracts” – include in all subcontracts, and
      • Special Provision 000-394
        , “Disadvantaged Business Enterprise in Federal-Aid Contract” – include in any subcontract.
    • TxDOT DMS is the departments web-based Compliance Tracking System to be used for DBE reporting. Prime contractor must request to add a subcontractor in TxDOT DMS.
    • Disadvantaged Business Enterprise/Small Business Enterprise/Historically Underutilized Business (DBE/SBE/HUB) goal credit must be captured, when the subcontractor is classified as a DBE/SBE/HUB. Reference the following:
    • As a Best Practice, a Texas Unified Certification Program (TUCP) printout to show, DBE or SBE certification. Ensure date is current in header and footer. The TUCP must be verified for all DBEs, both race conscious and race neutral.
Confirm the following information prior to approval of Form 2802, “Subcontract Request for Approval”:
  • total value of all subcontracted work does not exceed 70% of the original contract value.
  • for federal-aid projects verify race conscious DBE participation on an approved commitment agreement or utilization plan. Race conscious DBE subcontract work item must match the work items in the executed commitment agreements including substitutions. Verify race neutral DBE participation.
  • the subcontractor is not on the TxDOT or federal list of Debarred/Sanctioned Contractors.
  • the subcontractor is listed on the E-Verify program or has submitted documents for MOU (see E-Verify section below).
  • on federal-aid projects
NOTE:
For non-DBE subcontracts, this will be verified via the subcontract certification monitoring plan below.
Subcontracts are considered approved once the District approval date is entered into SiteManager.
File the Subcontractor required documents DBE or Non-DBE (2802, Special Provisions, contracts, etc.) in ProjectWise once approved.
 Refer to the
SiteManager Contract Administration Manual
and the
Flow Chart Aid
on CST Division webpage (internal access only). Notify the Contractor of such approval by letter or by email in a timely fashion, so as not to create delay impacts to the project.