South Carolina Code of Regulations › Chapter 63 - DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION › Article 8 - DISADVANTAGED BUSINESS ENTERPRISES PROGRAM › Section 63-716 - Special Provisions Applicable to Non-bonded Projects

Current through Register Vol. 48, No. 6, June 28, 2024
A. By submission of a bid on a non-bonded
			 project, the DBE grants permission to the Department to issue joint checks to
			 suppliers, vendors or subcontractors who supply materials, render services or
			 perform work on the contract when joint checks are, in the Department's
			 judgment, necessary or desirable.
B. A bid on a non-bonded project shall
			 include a list of all suppliers, vendors or subcontractors who the DBE proposes
			 to use in performing the contract.
C. A DBE on a non-bonded project shall not
			 permit a subcontractor to perform work on a contract until the subcontractor
			 and the subcontract have been approved by the Department. To obtain such
			 approval after the award of the contract, the Contractor must submit a request
			 for approval and a copy of the executed subcontract to the Department's
			 Official Engineer. The Department will approve or disapprove such subcontractor
			 within a reasonable amount of time after the receipt of such request.
D. A DBE on a non-bonded project shall not
			 incorporate materials or supplies into the work of a contract until the
			 executed invoice or purchase agreement has been submitted to the Department.
			 The DBE must submit the copy of the invoice or purchase agreement to the
			 Official Engineer, as appropriate.
E. Failure to obtain approval for
			 subcontractors or subcontracts, or failure to submit copies of subcontracts,
			 purchase agreements or invoices, shall constitute, at the Department's option,
			 a default of the contract.
F.
			 Termination of any non-bonded contract for default of the contractor renders
			 the contractor ineligible for any further Department non-bonded contracts for a
			 minimum period of two years from the date of the Notice of Default. The
			 Department may also consider defaulting contractors ineligible to bid on other
			 Department contracts pursuant to the provisions of Section 102.03(e) of the
			 Department's Standard Specifications for Highway Construction and ineligible
			 for approval as a DBE subcontractor on any Department contract with a DBE
			 goal.
G. In the event of default,
			 the provisions of Section 108.10 of the Department's Standard Specifications
			 for Highway Construction shall apply, with the Department acting as surety. Any
			 costs or charges incurred by the Department, or for which the Department,
			 acting as such surety, shall become liable as a result of the default, shall be
			 charged against the defaulting DBE contractor. The costs and charges may
			 include, but are not limited to: (1) charges incident to preparing bid proposal
			 and arranging for work to be resumed; and, (2) the excess of the expense of
			 completing the work under the contract deducted from any monies due or which
			 may be due the DBE contractor. The defaulting DBE contractor shall reimburse or
			 indemnify the Department, as surety, for all such costs or charges. The
			 defaulting DBE contractor shall be ineligible to bid as a prime contractor on
			 any Department contracts and shall be ineligible for approval as a DBE
			 subcontractor on any Department contract with a DBE goal until the DBE
			 contractor has reimbursed the Department or made acceptable arrangements to
			 reimburse the Department for such costs or charges.