Earthwork Solutions, LLC 1/15/2025

Fulton Street Pedestrian Bicycle Corridor PAGE 45 OF 114 CONTRACT FEDERAL AID # TAP-0420(026) WO #3785 September 6, 2024 Original Quantity Underruns 1 In the event that Work committed to a DBE firm as part of the COA underruns 2 the original planned quantities the Contractor may be required to substitute other 3 remaining Work to another DBE. 4 5 Contractor Proposed DBE Substitutions 6 Requests to substitute a COA DBE must be for good cause (see DBE 7 termination process below), and requires prior written approval of the Engineer. 8 After receiving a termination with good cause approval, the Contractor may only 9 replace a DBE with another certified DBE. When any changes between 10 Contract Award and Execution result in a substitution of COA DBE, the substitute 11 DBE shall have been certified prior to the bid opening on the Contract. 12 13 DBE Termination 14 Termination of a COA DBE (or an approved substitute DBE) is only allowed in 15 whole or in part for good cause and with prior written approval of the Engineer. 16 If the Contractor terminates a COA DBE without the prior written approval of the 17 Engineer, the Contractor shall not be entitled to payment for work or material 18 committed to, but not performed/supplied by the COA DBE. In addition, 19 sanctions may apply as described elsewhere in this specification. 20 21 Prior to requesting approval to terminate a COA DBE, the Contractor shall give 22 notice in writing to the DBE with a copy to the Engineer of its intent to request to 23 terminate DBE Work and the reasons for doing so. The DBE shall have five (5) 24 days to respond to the Contractor’s notice. The DBE’s response shall either 25 support the termination or advise the Engineer and the Contractor of the reasons 26 it objects to the termination of its subcontract. 27 28 If the request for termination is approved, the Contractor is required to substitute 29 with another DBE to perform at least the same amount of work as the DBE that 30 was terminated (or provide documentation of GFE). A plan to replace the COA 31 DBE Commitment amount shall be submitted to the Engineer within 2 days of 32 the approval of termination. The plan to replace the Commitment shall provide 33 the same detail as that required in the DBE Utilization Certification. 34 35 The Contractor must have good cause to terminate a COA DBE. 36 37 Good cause typically includes situations where the DBE Subcontractor is unable 38 or unwilling to perform the work of its subcontract. Good cause may exist if: 39 40 • The DBE fails or refuses to execute a written contract. 41 42 • The DBE fails or refuses to perform the Work of its subcontract in a 43 way consistent with normal industry standards. 44 45 • The DBE fails or refuses to meet the Contractor’s reasonable 46 nondiscriminatory bond requirements. 47 48 • The DBE becomes bankrupt, insolvent, or exhibits credit unworthiness. 49 50