1. Construction Collaborative Forum & Webinar September 25, 2017

2. Welcome & Introductions

3. Upcoming ESB Restricted Project
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,
Upcoming ESB Restricted Project

4. Final Mentor Protege Program
Open to both contractors and consultants
CDOT does not match mentors and protégés
Information can be found at:
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. Preferred Candidates for the Program
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. Incentives 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:
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.

9. Logistics 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:
Logistics

10. On the Job Training (OJT) Program Update
Mónica Vialpando, Labor/Contract Compliance Specialist
Albert Einstein said, “The only source of knowledge is experience.” Although I’m sure that he thought this, we can acknowledge a number of different types of training, including hand-on and classroom. So that where we’re starting at today...

11. We are in the process of changing the CDOT OJT Specification.
Why?
When?
How?
On-the-Job Training
So here’s the deal:
We have had the OJT spec for several years, and there’s honestly been a few issues with it for quite a while.
We knew that it was something that needed to be updated. So, when I came on board last year, I knew that this is something that I would be rewriting; it’s taken longer than I thought, but we are now fully in the process.
To further that information, I would also tell you that my entire goal was to make it easier for contractors. I saw a lot of contractors wanting to bid on jobs, and they felt like they couldn’t bid because they didn’t have a plan in place, and they didn’t know how to get them. The process takes a while right now - the going back and forth, and I want people to be able to use the program that we have without it taking an exceptionally long time.
How -- we’re currently working with CCA, CDOT folks, and contractors to get the best possible plan in place.

12. On-the-Job Training How is the plan being developed? Research
CDOT processes
External research
CFR knowledge
On-the-Job Training
CDOT processes -- I’ve been with CDOT a little over four years, and I’ve spent a LOT of time talking with contractors, they explained the concerns that they had. I’ve helped contractors re-write plans, I’ve analyzed many plans, and everything in between. In terms of the internal process, I knew some of the major pitfalls, the concerns, etc., and this helped guide and shape how I looked at the new spec.
In terms of external research, I researched a number of states to see what they had. If their OJT plan wasn’t posted, I called them and talked to them about it. In my current job within LCPtracker, I had a number of dealings with different states, and I took the time to ask them. I also reached out to FHWA (a few sources) so get their input about the plan components that were the most valuable. This was written over the course of several hours, but all in all, it is a year long process of development and fact finding.
CFR -- I started reading and re-reading the 23 Code of Federal Regulation. I knew that I had to know it inside and out, so when I was traveling (and not driving) I re read the code. I would write down questions and find out the answer.

13. On-the-Job Training Establishing Objectives Non-discrimination
Provide training
Increase the labor pool
On-the-Job Training
The requirements for the OJT programs are actually found in the 23 CFR under the part about non-discrimination. So when thinking about the program’s major components, it is important that this is highlighted. One of the primary goals of the OJT program is for non-discrimination -- that a contractor’s employees all have the chance to move forward and learn about the opportunities that are being provided.
The next idea that I wanted to bring forward was one where there has traditionally been some misconception. In the 23 CFR, it actually defines that the intent of the program is to train women and historically underrepresented groups; HOWEVER, that does NOT mean that CDOT can systematically deny others. That is not the case. The only reason that I bring this up is so that there is an understanding that although we are given specific guidance that this should remain front and center as a primary consideration, it means that it is not the ONLY consideration. It’s important that people recognize that.
Finally, I have reviewed and / or completed several compliance reviews in the last few years. And virtually every time that I have done one, people have talked to me about the concern that they had about the labor shortage, and as we’ve gone through the last few years, this need has increased and become more dire. I knew that this specification needed to address that in some way -- either by the encouraging trainers and trainees to come to the table or somehow affecting change.
The goals were taken from the FHwA website, the 23 CFR, FHWA OJT Fact sheet
“…. To ensure that a competent workforce is available…”

14. On-the-Job Training 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
CCA and DOL approved programs would be allowed to continue
Contractors could still write their own plan.
Out of the Box Plan -- where CDOT has pre-approved plans and the contractor can use them at will.

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 entity in 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:

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 , 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 (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 completed and 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 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

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 (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 (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/ /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