Pellco Construction, Inc. 6/22/2016

1 • A DBE performs a commercially useful function when it is responsible for 2 execution of a distinct element of Work and is carrying out its 3 responsibilities by performing, managing and supervising the Work 4 involved. The DBE must also be responsible with respect to materials and 5 supplies used on the Contract. For example; negotiating price, 6 determining quality, determining quantities, ordering, installing (if 7 applicable) and paying for the material itself. 8 9 • A DBE does not perform a commercially useful function if its role is limited 10 to that of an extra participant in a transaction, Contract, or project through 11 which funds are passed. 12 13 14 Joint Checking Allowance 15 Prime Contractors and DBEs must receive pre-approval by the OEO before 16 using a joint check. Joint check requests shall be submitted by the Prime 17 Contractor to the Contracting Agency for approval. 18 19 When requesting approval for use of a joint checking allowance, the 20 Contractor must distribute a written joint check agreement among the parties 21 (including the suppliers involved) providing full and prompt disclosure of the 22 expected use of the joint checks. The agreement shall contain all the 23 information concerning the parties' obligations and consequences or remedies 24 if the agreement is not fulfilled or a breach occurs. The joint check request 25 shall be submitted to the Contracting Agency for approval prior to signing the 26 contract agreement. 27 28 The following are some general conditions that must be met by all parties 29 regarding joint check use: 30 31 a. It is understood that the Prime Contractor acts solely as the guarantor 32 of a joint check. 33 34 b. The DBE's own funds are used to pay supplier of materials. The 35 Prime Contractor does not make direct payment to supplier. In order 36 to be performing a Commercially Useful Function (CUF), the DBE 37 must release the check to the supplier (paying for the materials it-self 38 and not be an extra participant in a transaction). 39 40 c. If the Prime Contractor makes joint checks available to one DBE 41 Subcontractor, the service must be made available to all 42 Subcontractors (DBE and non-DBE). 43 44 d. The relationship between the DBE and its suppliers should be 45 established independently of and without interference by the Prime 46 Contractor. The DBE has final decision-making responsibility 47 concerning the procurement of materials and supplies, including 48 which supplier to use. 49 HAWTHORNE ELEMENTARY SAFE ROUTES TO SCHOOL FED AID#SRTS-0420(021);COE#3540 SP-41 March 16, 2016