Management of Disadvantaged Business Enterprise Issues in Construction Contracting

This synthesis report will be of interest to state transportation agencies (STAs) and their contractors as they implement Disadvantaged Business Enterprise (DBE) regulations as set forth in the U.S.DOT Final Rule, revised February 2, 1999. The revised Final Rule required that STAs change the way they did business by prescribing new regulations, but also providing additional flexibility. The resulting different approaches to requirements among STAs are discussed, including bidders lists; prompt payment provisions; return of retainage provisions; actual achievements, including accounting and reporting procedures; good faith efforts; and compliance, including substitutions, fraud, and commercially useful function. The synthesis also includes information on construction and construction management contracts, designbuild projects, master contracts (indefinite delivery/indefinite quantity, services on demand, and task ordering), pass-through to local agencies, and STA performance measures.