Marshbank Construction 5/9/2016 - Laserfiche WebLink

I I 1 Commercially Useful Function (CUF) 2 The Prime Contractor has a responsibility and must treat the working I 3 relationship with the DBE such that the DBE is performing a commercially 4 useful function. The Prime Contractor may only take credit for Work performed 5 by a DBE that is determined to be performing a commercially useful function. 6 1 7 • A DBE performs a commercially useful function when it is responsible for 8 execution of a distinct element of Work and is carrying out its 9 responsibilities by performing, managing and supervising the Work 10 involved. The DBE must also be responsible with respect to materials and 11 supplies used on the Contract. For example; negotiating price, 12 determining quality, determining quantities, ordering, installing (if 13 applicable) and paying for the material itself. 14 15 • A DBE does not perform a commercially useful function if its role is limited 16 to that of an extra participant in a transaction, Contract, or project through 17 which funds are passed. 18 19 20 Joint Checking Allowance 21 Prime Contractors and DBEs must receive pre-approval by the OEO before 22 using a joint check. Joint check requests shall be submitted by the Prime 23 Contractor to the Contracting Agency for approval. 24 25 When requesting approval for use of a joint checking allowance, the I, 26 Contractor must distribute a written joint check agreement among the parties 27 (including the suppliers involved) providing full and prompt disclosure of the 28 expected use of the joint checks. The agreement shall contain all the 29 information concerning the parties' obligations and consequences or remedies 30 if the agreement is not fulfilled or a breach occurs. The joint check request 31 shall be submitted to the Contracting Agency for approval prior to signing the 32 contract agreement. 33 34 The following are some general conditions that must be met by all parties 35 regarding joint check use: III 36 37 a. It is understood that the Prime Contractor acts solely as the guarantor 38 of a joint check. I 39 40 b. The DBE's own funds are used to pay supplier of materials. The 41 Prime Contractor does not make direct payment to supplier. In order 42 to be performing a Commercially Useful Function (CUF), the DBE I/ 43 must release the check to the supplier (paying for the materials it-self 44 and not be an extra participant in a transaction). 45 46 c. If the Prime Contractor makes joint checks available to one DBE 47 Subcontractor, the service must be made available to all 48 Subcontractors (DBE and non-DBE). 49 50 d. The relationship between the DBE and its suppliers should be 51 established independently of and without interference by the Prime I 41st STREET TO WMVD FREIGHT CORRIDOR IMPROVEMENTS FED AID#STPUL-9931(012);PW#3472 SP-48 February 10,2016