South Carolina Code of Regulations › Chapter 63 - DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION › Article 8 - DISADVANTAGED BUSINESS ENTERPRISES PROGRAM › Section 63-717 - Claims Procedure on Non-bonded Contracts

Current through Register Vol. 48, No. 6, June 28, 2024
A. Every person who has furnished labor or
			 material under a Department-approved contract in the prosecution of the work of
			 a non-bonded contract and who has not been paid in full therefor before the
			 expiration of sixty days after either (1) the day on which the last of the
			 labor was done or performed by the claimant, or material was furnished or
			 supplied by the claimant, for which such claim is made; or, (2) the day on
			 which payment was made by the Department to the DBE contractor for the work or
			 materials for which such claim was made, shall have the right to make a claim
			 to the Department, acting as Surety, for the amount, or the balance thereof,
			 unpaid at the time the claim is made; provided, however, that any person having
			 a direct contractual relationship with a sub-contractor but no contractual
			 relationship expressed or implied with the DBE prime contractor shall have the
			 right to make a claim upon giving written notice to the DBE prime contractor
			 within sixty days from the date on which such person did or performed the last
			 of the labor or furnished or supplied the last of the material for which claim
			 is made, stating with substantial accuracy the amount claimed and the name of
			 the party to whom material was furnished or supplied or for whom labor was done
			 or performed. In no event shall any claim be made after the expiration of
			 ninety days from the date of final payment by the Department.
B. No claim shall be considered legitimate
			 unless it is supported by a written agreement or invoice.
C. Within thirty days after receiving a
			 claim, the official engineer shall refer the claim to the Department's Official
			 Engineer, to gather the information necessary for an analysis of the claim. The
			 Official Engineer shall forward the claim along with any additional information
			 to a Claims Committee. The Claims Committee shall be appointed by the State
			 Highway Engineer. The Department's Executive Assistant for Minority Affairs
			 shall serve as an Ex-Officio member of each Claims Committee.
D. The Claims Committee shall give ten days
			 written notice to the claimant and DBE contractor of the time and place for an
			 informal hearing on the claim. At such hearing the claimant and DBE contractor
			 shall have the right to appear and present evidence concerning the validity of
			 the claim. The DBE contractor, or an employee of the DBE contractor having
			 knowledge of the claim, must appear at the hearing if requested by the Claims
			 Committee. Failure of the DBE contractor, or employee of the DBE contractor, to
			 appear when requested may, in the Department's discretion, constitute grounds
			 for immediate termination of the contract.
E. The Claims Committee shall take into
			 account circumstances such as unsettled payments and disputes with the
			 Department or other circumstances that are beyond the DBE's control.
F. The Claims Committee shall make a written
			 recommendation to the State Highway Engineer as to the resolution of the claim
			 within ten days of the hearing. The State Highway Engineer shall consider the
			 recommendation and make the final decision as to the resolution of the claim.
			 The State Highway Engineer will notify the claimant and DBE contractor of the
			 decision within ten days after receipt of the Claims Committee's
			 recommendation.
G. If the
			 Department's decision requires the payment of money to the claimant by the DBE
			 contractor, the Department shall pay such money to the claimant on behalf of
			 the DBE contractor. Payment shall be made to the claimant within twenty-one
			 days of the Department's final decision. Payment shall be made from contract
			 funds or retainage. In the event contract funds or retainage are insufficient
			 to make full payment of claim, the payment amount shall be charged to the same
			 funding source as was used for the project out of which the claim
			 arose.
H. The DBE contractor shall
			 reimburse or indemnify the Department for all amounts paid to a claimant on
			 behalf of the DBE contractor. The DBE contractor shall be ineligible for
			 further Department non-bonded contracts until the DBE contractor has reimbursed
			 the Department or made acceptable arrangements to reimburse the Department. The
			 DBE contractor may also be disqualified from bidding on any and all Department
			 contracts pursuant to the provisions of Section 102.3 of the Department's
			 Standard Specifications for Highway Construction and be ineligible for approval
			 as a DBE subcontractor on any Department contract with a DBE goal.