Construction Collaborative Forum & Webinar September 25, 2017

1. Construction Collaborative Forum & WebinarSeptember 25, 2017

2. Welcome & Introductions

3. Region 1 ADA Curbramp Project. Mandatory Pre-Bid Meeting: • 1:30 pm October 4, 2017 2000 S Holly St, Denver, CO 80222 E/W Arterial Conference Rm Please contact Joy French if you have questions about the project: Joy French, joy.french@state.co.us, 303-757-9528 Upcoming ESB Restricted Project

4. Open to both contractors and consultants • CDOT does not match mentors and protégés • Information can be found at: http://www.connect2dot.org/build-your-business/mentor-protege Final Mentor Protege Program

5. Construction or professional services work in the transportation sector. • Not have any ties that would appear to compromise the independence (in accordance with DBE and ESB criteria) of the protégé. Protégés must meet the following criteria: • Existing in business for at least 2 consecutive years; • Have a minimum of (2) full time employees (including owner); • Past performance on transportation related construction or professional services contracts; • Pursuing transportation-related contracts; AND • Have CDOT ESB certification. Mentors must meet the following criteria: • Completed a minimum of 3 CDOT projects as a prime or sub or performed a minimum of $3 million of work with CDOT; • Prequalified with CDOT; • Have skills and capacity to assist a protégé business; AND • Have a commitment to assisting small and diverse firms in the transportation sector. Eligibility

6. Preference for: • Mentors who are working on a CDOT project with the intention of using the protégé. • Protégés that have completed Connect2DOT’s Leading Edge for Transportation or similar business development program. • Mentor-protégé pair that have worked together in the past. Preferred Candidates for the Program

7. Design-Build Projects: • Mentors may receive a financial incentive or double ESB participation on design-build projects • During the team’s initial year in the program and for one year thereafter • To be dictated by project. • Construction & Professional Services Contract Bonus: Mentors may receive: • $2,000 for at least $20,000 of participation by protégé • $5,000 for at least $50,000 of participation by protégé • During the team’s initial year in the program and for one year thereafter. • This can be used for two awarded contracts. • Reimbursement: Mentors may receive a financial stipend for time spent with the protégé. To receive the financial stipend, firms must submit an invoice and cover sheet at the completion of a milestone identified in the team’s Mentor-Protégé Program Plan. • Recognition: Special Recognition (to internal and external stakeholders, including newsletter announcement, internal CDOT communication, recognition before the Transportation Commission). Incentives

8. Disqualification If a mentor or protégé is disqualified from CDOT’s Mentor-Protégé Program, the mentor-protégé team will not be able to continue in the program and, as a result, will not benefit from the incentives of the program. Protégés may be disqualified if they: • Are decertified from the ESB program on the basis of fraud, debarment, failure to renew, or other cause not related to size. • Do not provide a quarterly update survey. • Are unwilling to be an active participant in the program. • Miss more than two meetings with the mentor. • Engage in fraud or a misrepresentation to participate in the program. Mentors may be disqualified if they: • Are unwilling to be an active participant in the program. • Do not provide quarterly update survey. • Miss more than two meetings with the protégé. • Fail to meet an ESB target or goal on two or more projects. • Engage in fraud or a misrepresentation to participate in the program.

9. The next deadline for applications is November 1, 2017. • Approved teams must submit a quarterly update survey • Application and update survey is available online here: http://www.connect2dot.org/build-your-business/mentor-protege Logistics

10. On the Job Training (OJT) Program Update Mónica Vialpando, Labor/Contract Compliance Specialist

11. We are in the process of changing the CDOT OJT Specification. • Why? • When? • How? On-the-Job Training

12. How is the plan being developed? • Research • CDOT processes • External research • CFR knowledge On-the-Job Training

13. Establishing Objectives • Non-discrimination • Provide training • Increase the labor pool On-the-Job Training

14. Key Components of the Proposed OJT Plan • Still allow CCA and DOL approved programs • Still allow contractors to write their own plan • Out-of-the-Box Plan • All contractors (including subs) could use the program. On-the-Job Training

15. We will be writing a construction bulletin to go with the specification, and we will be training on this in the spring whenever it is approved. • Here is where the updates will be posted: codot.gov/business/civilrights On-the-Job Training

16. We will be writing a construction bulletin to go with the specification, and it will be available when the spec goes live. On-the-Job Training

17. Here’s what I want you to take away: On-the-Job Training

18. CDOT Release of Retainage & Partial Pay Process Katherine Williams, Civil Rights Program Manager, Small Business & Title VI

19. DBE Regulation 49 CFR 26.29:(a) [CDOT] must establish, as part of [its] DBE program, a contract clause to require prime contractors to pay subcontractors for satisfactory performance of their contracts no later than 30 days from receipt of each payment [CDOT makes] to the prime contractor.

20. Prompt Payment Law CRS 24-91-103 • “Whenever a contractor receives payment pursuant to this section, the contractor shall make payments to each of his subcontractors of any amounts actually received which were included in the contractor's request for payment to the public entity for such subcontracts.The contractor shall make such payments within seven calendar days of receipt of payment from the public entityin the same manner as the public entity is required to pay the contractor under this section if the subcontractor is satisfactorily performing under his contract with the contractor. • The subcontractor shall pay all suppliers, sub-subcontractors, laborers, and any other persons who provide goods, materials, labor, or equipment to the subcontractor any amounts actually received which were included in the subcontractor's request for payment to the contractor for such persons, in the same manner set forth in this subsection…” • At the time the subcontractor submits a request for payment to the contractor, the subcontractor shall also submit to the contractor a list of the subcontractor's suppliers, sub-subcontractors, and laborers.

21. CDOT Standard Specifications for Road & Bridge Construction • The Contractor shall pay subcontractors and suppliers for all work which has been satisfactorily completed within seven calendar days after receiving payment for that work from the Department. For the purpose of this section only, work shall be considered satisfactorily complete when the Department has made payment for the work. • The Contractor shall include in all subcontracts a provision that this requirement for prompt payment to subcontractors and suppliers must be included in all subcontracts at every tier. The Contractor shall ensure that all subcontractors and suppliers at every tier are promptly paid. • If the Contractor or its subcontractors fail to comply with this provision, the Engineer will not authorize further progress payment for work performed directly by the Contractor or the noncompliant subcontractor until the required payments have been made. The Engineer will continue to authorize progress payments for work performed by compliant subcontractors.

22. Prompt Payment Reporting in B2G Monthly “Audit” From B2G: • Commences with the award • Primes should be reporting based on payments in that month • Not based on month of the pay estimate • Based on date received from CDOT • May pay with 7 days unless they have good cause • Must report by 15th of the following month • Subs will receive a notice, even for zero dollar reporting • Subs have option to ignore, confirm, or provide notice of discrepancy • How to know if payment is due: https://www.codot.gov/content/payestimates/

23. DBE Regulation -Release of Retainage : (1) You may decline to hold retainage from prime contractors and prohibit prime contractors from holding retainage from subcontractors. (2) You may decline to hold retainage from prime contractors and require a contract clause obligating prime contractors to make prompt and full payment of any retainage kept by prime contractor to the subcontractor within 30 days after the subcontractor's work is satisfactorily completed. (3) You may hold retainage from prime contractors and provide for prompt and regular incremental acceptances of portions of the prime contract, pay retainage to prime contractors based on these acceptances, and require a contract clause obligating the prime contractor to pay all retainage owed to the subcontractor for satisfactory completion of the accepted work within 30 days after your payment to the prime contractor.

24. Release of Retainage 109.06 (a) Standard Amount Retained. The Department will make a deduction from the progress estimate in the amount considered necessary to protect the interests of the State, pursuant to Section 24-91-103, CRS. The amount to be retained will be 3 percent of the value of the completed work, exclusive of mobilization and payments for materials on hand, to a maximum of 1 ½ percent of the original contract amount. No further amount will be retained if the Contractor makes satisfactory progress in the contract work...The Contractor shall request release of retainage on work that has been partially accepted in accordance with subsection 105.21(a). This section applies to the Contractor only. CDOT does not require retention to be withheld from subcontractors.

25. Release of Retainage 109.06(f) Retainage by the Contractor. The Contractor may withhold retainage of each progress estimate on work performed by subcontractors. If during the prosecution of the project, a subcontractor satisfactorily completes all work described on CDOT Form No. 205, as amended by changes directed by the Engineer, the following procedure will apply: 1. The subcontractor may make a written request to the Contractor for the release of the subcontractor’s retainage. 2. Within ten working days of the request, the Contractor shall determine if all work described on Form 205 has been satisfactorily completed and shall inform the subcontractor in writing of the Contractor’s determination. 3. If the Contractor determines that the subcontractor has not achieved satisfactory completion of all work described on Form 205, the Contractor shall provide the subcontractor with written notice, stating specifically why the subcontract work is not satisfactorily completedand what has to be done to achieve completion. A copy of this written notice shall be provided to the Engineer. 4. If the Contractor determines that the subcontractor has achieved satisfactory completion of all work described on Form 205, the Contractor shall release the subcontractor’s retainage within seven calendar days.

26. Release of Retainage • Subsections 5-8: May request concurrence from the Engineer to approve amounts. • For this subsection only, satisfactory completion of all work described on CDOT Form No. 205 is when all tasks called for in the subcontract as amended by changes directed by the Engineer have been accomplished and documented as required by the Department. This is not the same as partial acceptance. The Contractor cannot base release of retainage on Partial Acceptance under 105.21

27. Release of Retainage Subsection 9: If during the prosecution of the project a portion of the work is partially accepted in accordance with subsection 105.21(a), the Contractor shall release all subcontractors’ retainage on the portion of the partially accepted work performed by subcontractors. Prior to the Department releasing the Contractor’s retainage on work that has been partially accepted in accordance with subsection 105.21(a), the Contractor shall submit to the Engineer a certified statement for each subcontractor that has participated in the partially accepted work. The statement shall certify that the subcontractor has been paid in full for its portion of the partially accepted work including release of the subcontractor’s retainage.

28. Things to Keep in Mind • Contractors cannot waive or contract out of prompt payment or release of retainage requirements • Unless in the favor of the subcontractor • Primes are not required to withhold retainage from subs and certains lines of work can consider subcontracting out of retainage requirements • The obligation to promptly pay or to release retainage does not arise if there is a legitimate dispute over the subcontractor’s performance • Subs should make sure all required paperwork has been completed • Prime may not withhold payment from a subcontractor to address a dispute between the prime and subcontractors on an unrelated contract

29. What to do if you’re having issues? • Contact the Prime/Report a Discrepancy • Discrepancies go to the prime and to CDOT • Can report if you received a $0 notice but should have been paid or if you received an amount different than what you were owed • Include any documentation that you have • Contact the Project Engineer • The engineer is responsible for prompt pay enforcement • Should withhold prime’s portion until payment is made • Contact the Regional Civil Rights Office • Can help to mediate the issue • Will work with engineer to determine what payment is due

30. Upcoming Training & Events • 9/28: LEADING EDGE Information Session in CO Springs • 9/28: Contractor Academy - Jobsite Hazard Analysis Workshop • 10/4 - 11/15: US DOT Bonding Education Program • 10/4 - 10/5: Doing Business with DEN Conference • 10/5 - 12/13: LEADING EDGE for Transportation in CO Springs • 10/5: TECS Class 1 Training at CDOT • 10/12: SBA Small Business Certification Overview • 10/12: Contractor Academy - How to Present Like a Pro • 10/16 - 11/9: Construction Careers Now! Program • 10/18: City and County of Denver Certification Orientation • 10/20: North Metro Denver Small Business Summit • 10/23: Transportation Summit • 11/2: Northern Colorado Women’s Small Business Conference • 11/3: CDOT Region 5 Upcoming Opportunities Forum in Durango • 12/4: CDOT Construction Collaborative Forum Details and registration available at http://www.connect2dot.org/event-calendar-list