Construction Manual  

:

  • RECORDS AND REPORTS

  • DISADVANTAGED BUSINESS ENTERPRISE/MINORITY BUSINESS ENTERPRISE/WOMEN BUSINESS ENTERPRISE

  • General
     
    It is the policy of the North Carolina Department of Transportation (NCDOT) that Disadvantaged Business Enterprises, Minority Business Enterprises and Women Business Enterprises shall have the equal opportunity to compete fairly for and to participate in the performance of Federal and State funded contracts. NCDOT has two programs, the Disadvantaged Business Enterprise (DBE) and the Minority Business Enterprise/Women Business Enterprise (MBE/WBE), that establish goals, on a contract by contract basis, for participation by the respective firms. The DBE Program is a requirement for federally funded projects and the MBE/WBE Program is a requirement for state funded projects. 
     
    Projects are advertised with a goal set for DBE/MBE/WBE participation. Both Federal and State projects have a single goal.  Federal projects have a DBE Goal, whereas State Projects have a Combined MBE/WBE Goal. The approved DBE/MBE/WBE participation submitted at the time of bid by the Contractor is a requirement of the contract. Upon award, the Contractor is required to utilize the DBE/MBE/WBE firms listed in the contract to perform the committed line items that were submitted at the time of bid.  The DBE/MBE/WBE subcontractor is required to perform the contract quantities indicated for each committed line item(s). When a DBE subcontractor is awarded the entire plan quantity they are required to complete all work for this line item including overruns. The DBE shall participate in the additional work to the same extent as the DBE participated in the original contract work. Payment shall be based on the unit pricing submitted for each committed line item.
     
    Letter of Intent 
     
    The Contractor is required to submit a Letter of Intent to document the DBE/MBE/WBE firms that will be used to meet the contract goals. A Letter of Intent shall be submitted for each DBE/MBE/WBE firm listed in the Contractor's proposal and contain general information about DBE/MBE/WBE firm and the dollar amount of the firm's participation. The Contractor shall complete a "Letter of Intent to Perform as a Subcontractor," form and submit it to the State Contractor Utilization Engineer, of the Contractual Services Unit.
     
    Payment Tracking
     
    The Contractor shall provide the Engineer with an accounting of payments made to DBE/MBE/WBE firms, including material suppliers, contractors at all levels (prime, subcontractor or second tier subcontractor). This accounting shall be furnished to the Engineer for any given month by the end of the following month. Failure to submit this information accordingly may result in (1) withholding money due in the next partial pay estimate, or (2) removal of an approved contractor from the prequalified bidders list or the removal of other entities form the approved subcontractors list. 
     
    The Contractor shall report the accounting of payment through the Department’s DBE Payment Tracking System, which is a web based application. While each contractor (prime, subcontractor, second tier subcontractor) is responsible for accurate accounting of payments to DBE/MBE/WBE’s, it shall be the prime contractor’s responsibility to report all monthly and final payment information in the Tracking System.
     
    Joint Checks 
     
    Due to potential credit issues, the Prime Contractor may assist the DBE/MBE/WBE firms with their material purchases through the use of joint checks. The Contractor can write a joint check to the material supplier with name of both the supplier and the subcontractor. Prior to writing a joint check the Contractor has to submit a completed Joint Check Notification Form​ and supporting documentation the Resident Engineer.
     
    Although the use of joint checks is an acceptable practice, it is expected that DBE/MBE/WBE firms counting credit for material purchases maintain control of ordering materials and scheduling delivery.
     
    Truck Monitoring
     
    DBE/MBE/WBE participation can be attained through the use of trucking firms. The specifications have stipulations to determine the amount of participation for the DBE/MBE/WBE trucking firm. The Resident Engineer is responsible for the truck monitoring. The contractor shall provide a trucking plan when transportation services are used to meet contract commitments. A Truck Report form has been developed to document the use of the DBE/MBE/WBE trucking. The Truck Report form should be used along with the trucking plan provided to the Resident Engineer from the Contractor to assist in monitoring of DBE/MBE/WBE trucking. The Truck Report should be completed daily when trucking is performed on the project and included in the project diaries. An example of a trucking plan, an example Truck Report and a blank Truck Report can be found by clicking the links below.
     
    Here are forms and examples for truck monitoring.
     
    1. Trucking Plan Example 
       
    2. Truck Report Example
       
    3. Truck Report Blank​
         
    Replacement of a DBE/MBE/WBE
     
    The specifications allow for a Contractor to replace and/or substitute a committed DBE/MBE/WBE subcontractor for valid reasons that would not allow the subcontractor to complete the committed work. However, the Contractor must make a good faith effort to replace the DBE/MBE/WBE firm with another certified and prequalified DBE/MBE/WBE subcontractor. When replacing a committed DBE/MBE/WBE subcontractor, the Contractor must submit, to the Engineer, a completed DBE/MBE/WBE Replacement Request Form and documentation that demonstrates reasonable good faith efforts have been made to replace the committed DBE/MBE/WBE subcontractor. The contractor is required to provide the subcontractor a minimum of 5 business days to respond to a replacement request. A sample letter that can be used by the prime contractor has been provided.
     
    The Engineer will coordinate with the Construction Unit to begin the review of the request.  If replacement with another DBE/MBE/WBE is not part of the request, the Construction Unit will coordinate with the State Contractor Utilization Engineer, as appropriate, to review the good faith effort documentation. The Engineer will notify the Contractor in writing of the determination of its DBE/MBE/WBE Replacement Request Form.​
     
    However, prior to starting the replacement process, the Contractor is responsible for coordinating with the DBE/MBE/WBE subcontractor to see if they are willing and able to perform the work as indicated in their contract.  If the Contractor notices a reoccurring issue with a DBE/MBE/WBE subcontractor, they are to notify the Engineer and keep them abreast of the issues. The Engineer will notify the Construction Unit to determine whether the DBE/MBE/WBE firm would benefit from supportive services provided by the Business Opportunity and Workforce Development Unit in the Office of Civil Rights. (BOWD Supportive Services Field Form)
     
    NCDOT Monitoring Plan 
     
    As the contract administrator, the Department has the responsibility of ensuring that the Contractor adheres to the requirements of the DBE/MBE/WBE programs. Therefore, the Department has developed a plan to monitor the DBE/MBE/WBE participation for construction projects. Monitoring the DBE/MBE/WBE participation begins during the Preconstruction Conference and continues through the project closeout. The following DBE/MBE/WBE Monitoring Plan outlines the roles and responsibilities of each position and/or unit.
     
     
    DBE/MBE/WBE Monitoring Plan - Construction ​
      ​
    Preconstruction Conference ​
       
    Resident EngineerOutline contract committed DBE's and review the special provision requirements during the Preconstruction Conference.
     Provide copies of Replacement Form and Joint Check Form to Prime Contractor. 
     Provide copies of BOWD Supportive Services Form to Prime Contractor.
     Provide copies of contract commitments to all project staff. 
    Project Construction ​
       
    Resident EngineerReceive completed Subcontract Approval Forms from Prime Contractor. Review forms to ensure that all line items and amounts are at least equal to those committed in the back of the contract, and then enter the approved Subcontract Approval Forms in HICAMS.  The Prime Contractor must be notified in writing of any necessary changes. 
     Review Payment Tracking System at least monthly for accuracy. Sets payment Status to “Accept" or “Change Needed." Immediately notifies prime contractor in writing of any payments that require changes.
     Provide written direction to prime contractor when alerted by inspection staff of work being performed by anyone other than committed DBE subcontractor. Contractor will be directed to suspend operations on the work in question until the issue has been reviewed and appropriate action is taken. Meet immediately with the contractor to review the issues.
     Discuss work performed by subcontractors at monthly construction meetings.  Document any discussions regarding quantity discrepancies, response time, and/or delays to construction regarding subcontractors.
     Request supporting documentation (price quote from suppliers, canceled checks, etc.) when necessary for verification that DBE is meeting CUF requirements. 
    Project InspectorMonitors daily project work and immediately alerts the Prime Contractor and Resident Engineer if the committed DBE subcontractors are not performing items of work listed in the contract.
     Review material invoices upon receipt on project to ensure DBE subcontractors are purchasing material when the commitment includes materials purchasing. 
    Area Construction EngineerReview contract commitments, project diaries, DBE Payment Tracking during periodic site reviews to validate program compliance. Discuss findings and any necessary corrective action with Resident Engineer.
     DBE Compliance Audit will be conducted as a part of the yearly office review. 
    State Construction EngineerProvide program guidance and training to field staff.
     Perform process review audits through HiCAMS and the payment tracking systems.
    Office of Civil RightsConduct random project review audits at various stages for CUF and DBE participation. Provide audit results to the State Construction Engineer and applicable Division Engineer.
     Conduct DBE investigations. 
       
    DBE Replacement Procedures ​
       
    Resident EngineerReceive completed DBE/MBE/WBE Replacement Request Form and supporting documentation. Review form and supporting documentation for accuracy and notify contractor in writing if additional information is required. For involuntary removals, the prime must provide the committed DBE subcontractor five (5) business days to respond in writing to its replacement request.
     Determine if documentation supports replacement of the committed DBE firm.
     Coordinate with the Construction Unit on the replacement process.
     Provide written notification of Department's decision to contractor. Include signed form when decision is concurrence.
     Notify State Construction Engineer and State Contractor Utilization Engineer on contract replacement. 
    Construction UnitConstruction Unit will ensure that the DBE Replacement Process is followed and will notify other units (e.g. BOWD@ncdot.gov, DBE@ncdot.gov, and TitleVI@ncdot.gov) as appropriate.
      ​
    Joint Check Procedures ​
       
    Resident EngineerReceive Joint Check Notification Form and supporting documentation.
     Review form and supporting documentation for accuracy and notify prime contractor in writing if additional information is required.
     Complete the form and provide written notification to prime contractor.
     Provide copies of Joint Check Notification Form to project inspection staff.
     Provide Copies of Joint Check Notification Form and any supporting documentation to State Construction Engineer and State Contractor Utilization Engineer. 
    Project InspectorReview material invoices upon receipt on project to ensure DBE subcontractors are purchasing material when the commitment includes materials purchasing.
     Immediately notify Resident Engineer if invoices are in the name of someone other than DBE subcontractor. 
    Office of Civil RightsState Contractor Utilization Engineer will track occurrences of joint check use by prime and subcontractor. 
       
    DBE Payment Tracking ​
       
    Resident EngineerConfirm participation and payments to committed subcontractors on a monthly basis and complete DBE/MBE/WBE Subcontract Commitment Payment Summary with submittal of final estimate.
     Submit DBE/MBE/WBE Subcontract Commitment Payment Summary and supporting documentation (Replacement Forms, Joint Check Forms, etc.) to DCE with Final Estimate Assembly.
    Division Construction EngineerReview DBE/MBE/WBE Subcontract Commitment Payment Summary and supporting documentation for accuracy.
     Submit DBE/MBE/WBE Subcontract Commitment Payment Summary and supporting documentation to State Construction Engineer with Final Estimate Assembly.  On Division let contracts, the same should be submitted to the State Contractor Utilization Engineer.
    State Construction EngineerReview DBE/MBE/WBE Subcontract Commitment Payment Summary, Replacement Forms and Joint Check Notification Form
     Confirm final participation amount is properly documented prior to issuance of final statement.
     Provide copies of all documentation to State Contractor Utilization Engineer. 
    Office of Civil RightsProvide State Construction Engineer with a quarterly audit report of closed projects with projects highlighted that did not meet the contract goal requirement and provided no justification.
     Audit projects at 50% completion to ensure payments are being entered in a timely manner.
     Audit at least one project per Resident Engineer per year to ensure that all the appropriate DBE program documentation is present. 
       
    Roles ​
    DivisionAdminister all aspects of the contract.
     Ensure the project provisions are followed and that proper documentation is submitted by prime and subcontractors.
    Construction UnitProvide recommendations on issues related to payment tracking and administering potential non-compliance issues.
     State Construction Engineer will review non-compliance issues and notify contractor of any sanctions imposed. 
    Office of Civil RightsProvide recommendations on issues related to counting participation, replacements, and joint check use.
     Conduct sample project review audits at various stages of the project for CUF and DBE participation; conduct performance audits of the program; conduct monitoring of sub-recipient DBE compliance; and conduct investigations.
     Provide external training to DBE subcontractors 
     

  • RECORDS AND REPORTS
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