1. Construction Small Business
Collaborative Forum & Webinar June 27, 2016
Greg D. Welcome
Agenda with the following content will be on a board or easel:
Welcome - Greg Diehl, CDOT Civil Rights Program Director (5 minutes)
Introduction to the Forum - Megan Coontz McAllister, CDOT Civil Rights Specialist (15 minutes)
Changes to Consultant Contracts – Katherine Williams, CDOT Small Business Programs & Title VI Supervisor (1 hour 20 min.)
Upcoming Events – Cathy Kramer, Connect2DOT Program Manager (5 min.)
Recommended Agenda Items & Announcements – Megan Coontz McAllister, CDOT Civil Rights Specialist (10 min.)
Adjourn – Greg Diehl, CDOT Civil Rights Program Director (5 minutes)

2. Advisory Chair & Vice-Chair
Greg Diehl, CDOT, CDOT Civil Rights Program Director
ADVISORY CHAIR.
Mowa Haile, President & founder of Sky Blue Builders
ADVISORY VICE-CHAIR.
Vince Gilmore, Director of Business Development at
Gilmore Construction
MISSION. To provide a forum where small businesses, CDOT staff, and other industry leaders can find solutions to issues affecting DBE and ESB utilization and success.
Greg D.

3. Introductions
Greg D.

4. Upcoming Opportunities:
CDOT Go Sheet is available here:
Megan

5. Reporting Back on Feedback
Discussion:
Reporting Back on Feedback
Megan Coontz McAllister, CDOT Small Business Programs
Megan

6. Bonding Assistance Feedback Action -Bonding is a barrier
-Have a CDOT self-insurance program, or something similar.
-Education is key, but harness existing resources
-CDOT staff have been exploring options and doing research and found an interesting model at FDOT.
Megan

7. FDOT Model Bond Guarantee Program Second surety.
Bond in company name to ensure they build capacity & bonding record.
Bond education requirement. CDOT can partner with existing education programs.
Megan

8. Mentor-Protégé Program
Feedback
Action
-CDOT staff hopes to begin a mentorship program between CDOT engineers and ESB restricted project primes. CRBRC is currently focusing on developing the ESB restricted project program.
We also hope to develop this program between primes and subs, however, the ESB restricted project implementation is our primary focus at this time.
-Model after 8(a) and couple with projects
-Should have an ESB focus, but not exclude DBEs.
-Find a good model, don’t re-invent the wheel.
Megan

9. Technical Training & Grant Program
Action
-Connect2DOT will acquire a platform for online trainings next federal fiscal year and create videos to help firms navigate CDOT process.
-Connect2DOT has included the creation of a scholarship program for next federal fiscal year in its scope of work.
Megan

10. Pay Estimates, Prompt Pay,
& Release of Retainage
Mark Straub, CDOT Engineer
Anna Mariotti, CDOT Civil Rights Manager
Chip Brazelton, CDOT Civil Rights Manager
Mark, Anna, & Chip

12. To understand what is required of you, ALWAYS go straight to the source!
Click here to find a digital version of CDOT’s Construction Specifications or “the green book”

13. Process Changes with LCP Tracker & B2G Software
The sub goes into the system to enter payroll and certify. This is then sent to the prime for approval.
Project engineer & civil rights will be able to see certified payroll information concurrently through the system.
The project engineer will approve certified payroll.
Elimination of the form 1419.
New electronic system for registration & tracking.
Civil rights is only involved in employment dispute and/or Davis Bacon questions or issues.
Monthly contract audit for prompt pay (all subs must verify pay).

14. LCP Tracker Anticipated Phases: April-June 2016:
Implementation phase and CDOT staff training
July-August 2016:
Piloting program
September 2016:
Begin use for projects under $2 million
December 2016:
Begin use for projects between $2-$10 million
March 2017:
Used for all CDOT projects
Anna (5 minutes)

15. Cathy Kramer, Connect2DOT Program Manager
Discussion
Cathy Kramer, Connect2DOT Program Manager

16. Prompt Payment for Subs
Prompt payment is part of the contract requirements under the DBE Program for federally assisted projects
It is intended to remove late payment barriers not only for DBEs, but for ALL subcontractors as a race-neutral mechanism
Prompt pay regulations offer subcontractors a means to pursue timely payment for completed/accepted work
Note: Because delayed pay issues are not always true prompt pay issues, there is not legal recourse for subcontractors (unless through contract)
Delayed pay can cause businesses to struggle when there is a shortage of operating capital. Because these are not true prompt pay issues, there is not legal recourse for subcontractors. Because of this, businesses need to plan and be aware of the potential of delayed pay.

17. Some Reasons for Delayed Payment
A prime contractor has not received payment from the owner for the work completed by a subcontractor
The prime contractor perceives deficiencies in the subcontractor’s work for which he anticipates a future claim from the owner
The owner disputes that certain work has been completed or that the work meets contract specifications
The prime contractor knows that they ought to pay, but doesn’t
Delayed pay can cause businesses to struggle when there is a shortage of operating capital. Because these are not true prompt pay issues, there is not legal recourse for subcontractors. Because of this, businesses need to plan and be aware of the potential of delayed pay.

18. What Can You Do?
Before the Project
Have a clearly defined process for dealing with late payments
Estimate and manage cash flow with the expectation of payment delays
Obtain a business line of credit or short-term loan
Read your subcontract!
Carefully review “Pay When/If Paid” terms - eliminate precedent conditions
Set your own payment terms (e.g., Net 30) or negotiate subcontract terms
Colorado Statute § 24-91­103(2) allows for 15% interest per annum or amount specified in contract “whichever is higher”
Add markup into bid to cover potential late payments (4%) and/or discount for early payment (2%)
Other ideas?
Delayed pay can cause businesses to struggle when there is a shortage of operating capital. Because these are not true prompt pay issues, there is not legal recourse for subcontractors. Because of this, businesses need to plan and be aware of the potential of delayed pay.

19. What Can You Do?
During the Project
Submit invoices and required documentation on time, every time
Make sure documentation is free of errors and has correct contact info
Use accounting software to track payments and generate past due notices
Be proactive - follow up on late payments immediately
Talk to the Region Civil Rights Manager
File a prompt payment claim
Other ideas?
Delayed pay can cause businesses to struggle when there is a shortage of operating capital. Because these are not true prompt pay issues, there is not legal recourse for subcontractors. Because of this, businesses need to plan and be aware of the potential of delayed pay.

20. What Can You Do?
After the Project
Determine whether to work with the contractor again in the future
Follow up with CDOT Region Civil Rights Manager
Refer to debt collection agency
Arbitration, claim, lien or lawsuit
Be professional - keep opinions out of social media
Other ideas?
Delayed pay can cause businesses to struggle when there is a shortage of operating capital. Because these are not true prompt pay issues, there is not legal recourse for subcontractors. Because of this, businesses need to plan and be aware of the potential of delayed pay.

21. Best Practices
What issues has your business experienced regarding prompt payment?
Any other “best practices” you can share to reduce capital issues during performance on a public project?

22. Upcoming Events
June 29: FRMG Presents: Moving from Vertical to Horizontal Construction
July 8: Construction Contractor Compliance
July 12: CDOT ESB Orientation
July 14: CDOT Professional Services Collaborative Forum
July 18: CDOT 2016 Day at the DOT
July 28: Kiewit Presents: Networking Dinner & Capacity Building Workshop - Understanding Subcontract Language
Cathy (5 minutes)

23. Connect2DOT.org/stay-connected/cdotcf
Comments & Questions:
Connect2DOT.org/stay-connected/cdotcf
Megan
To submit comments, questions, or suggested agenda items