At Webber, we are committed to the success of our subcontractors. In the dynamic Texas construction environment, Webber’s collaboration with subcontractors is critical to the execution of our diverse portfolio of projects. Webber’s approach to subcontractor management is twofold: to proactively identify and engage new subcontractors, while also expanding the roles and improving relationships with our existing subcontractors.
If you would like to learn more about Webber requirements for subcontracting, please review the following documents:
As a major infrastructure and public works contractor, many Webber projects are funded by aid from the U.S. Department of Transportation (USDOT). As recipients of these funds, Webber public owners have established and maintain Disadvantaged Business Enterprise (DBE) Programs in accordance with 49 CFR Part 26.
Why does the DBE program matter to Webber?
DBE requirements apply to any Texas infrastructure project partially or completely federally funded. Infrastructure projects include among others highways, bridges, roadways, tollways, interstates, transit facilities and service, and airports. If even $1 of federal aid is used, all federal requirements apply.
DBE compliance is a requirement; failure to properly administer the program could result in loss of funding and audits for Webber clients and Webber.
Texas recipients include but are not limited to
- Bexar County*
- Capital Metro
- City of Austin
- City of Dallas*
- City of Houston*
- City of San Antonio*
- Dallas Area Rapid Transit (DART)
- Dallas International Airport (DFW)
- Houston Airport Systems
- North Texas Tollway Authority* Port of Houston*
- San Antonio Airport*
- San Antonio Water System*
- Tarrant Regional Water District*
- Texas Department of Transportation**
- Travis County*
- VIA Metro
*Denotes Webber Client
**TxDOT projects account for approximately 80% of Webber’s work
Participating on a Webber Project as a DBE
In submitting a quote to Webber for use toward a DBE goal, DBE subcontractors are expected to know the DBE regulations and comply with them at the time of bid and throughout project completion.
- DBE subcontractors attest that they meet the certification requirements and are in good standing with the Texas Unified Certification Program (TUCP). These requirements include, in general, that: The qualify owner owns 51% or greater of the company
- That the owner’s personal net worth does not exceed $1.32 million (excluding primary residence and interest in the business)
- The average business gross receipts over a three year period do not exceed $23.98 million or the applicable Small Business Administration size cap established for the relevant category of work, whichever is lower.
Further, the DBE subcontractor attests that the qualifying owner manages the day-to-day operations, possesses the technical expertise of the business (i.e. engineering firm, owner must be a P.E.), and has clearly identified via approved NAICS codes from its certification which categories of work it may perform for DBE credit.
Commercially Useful Function
DBEs working with Webber acknowledge Commercially Useful Function (CUF) criteria and commit to self-performing 100% of their work with their own resources. If lower-tier subcontracting is to occur, the DBE recognizes that it must perform at minimum of 30% of the overall contract value to perform a commercially useful function.
Further, any work subcontracted to non-DBE firms may not be counted toward Webber DBE goals. All lower-tier subcontractors must be pre-approved by Webber. DBEs agree to immediately notify Webber of lower-tier non-DBE subcontracting.
DBEs also commit to:
- Independently manage day-to-day operations
- Perform, manage, and supervise their own work
- Use their own resources (i.e. equipment, personnel, etc.)
- Meet all commercially useful requirements
Fraud occurs when DBE activity on a project is falsely reported, when a DBE does not self-perform its work, when a DBE does not independently manage its own work, when a DBE subcontracts its work to one or more non-DBEs and fails to report it to the prime/owner, when a prime self-performs DBE work and compensates the DBE for it, and when commercially useful function requirements have intentionally not been met.
Instances of fraud carry, at minimum, $10,000 fine per incident and possible Federal imprisonment. DBE Fraud is a Federal offense and may result in investigations by public owners, the Office of Inspector General (OIG), and the Federal Bureau of Investigations (FBI). Prosecution can result in debarment, fines, and Federal prison terms for responsible parties (including responsible individuals).
If at any time a DBE subcontractor is approached with a proposition of fraud on a Webber DBE Compliance Coordinator, Monica Morris, immediately at Monica.firstname.lastname@example.org. Webber maintains a strict zero tolerance policy and will inform, support, and participate in investigations of state and federal officials to the fullest degree.
NOTE: This fact sheet is not a full representation of DBE program requirements, which vary by owner. For specific issues/questions contact the contracting authority or TUCP
Where can I find information regarding current Webber bidding opportunities?
For those subcontractors actively working with Webber, Estimating and Procurement personnel will initiate contact based on project scope. For those subcontractors new to Webber, current bidding opportunities are posted online on Webber’s web-based bulletin board. The bulletin board can be accessed via the “Doing Business with Webber” section of the Webber website (www.wwebber.com). Quote solicitations include contracting opportunities, submission deadlines, and Webber contact information.
Prospective subcontractors are encouraged to complete Webber’s vendor registration process to expedite consideration for inclusion in upcoming opportunities.
When will I be notified if my quote was included in the bid?
Webber does not issue notification to all potential subcontractors of final selection and inclusion. If a subcontractor’s quote is included in a bid and Webber is the apparent low bidder a Notice of Intent will be issued. Generally, Notices of Intent are issued within thirty days of bid day. If a subcontractor has not received a Notice of Intent within thirty days, the Webber Estimating Department may be contacted for additional information.
Why doesn’t Webber notify all subs if their bid was included?
As Webber completes its buy-out process, there may be instances wherein a quote originally identified for use on a project is rejected. This can occur if a subcontractor failed to provide detailed information regarding inclusions, exclusions, mobilization, or material, fails to meet Webber insurance requirements, is debarred by a public owner, or demonstrates performance issues on other Webber projects. Under these circumstances, among others, Webber may elect to reject the original quote selected and use the quote of another subcontractor.
If I am a DBE subcontractor, is the notification process the same?
No, as a condition of award Webber must demonstrate that it has met owners’ DBE requirements. These requirements are documented in DBE Commitment Forms. Currently, for the Texas Department of Transportation, DBE Commitments are required within ten days of Webber’s receipt of notification that it is the apparent lower bidder. As a result, DBEs are generally contacted shortly after the bid closing to notify them of inclusion in the bid and to coordinate receipt of their letters of intent to perform on the project.
NOTE: Submission requirements vary by owner. Further, as owner requirements change, notification and coordination efforts with DBEs will be modified accordingly.
If I have questions regarding a particular bid, who do I contact?
All quotes solicitations are issued and/or published by the Webber Estimating Department. Quote solicitations include, at times specific to particular line items, a primary point of contact. If a primary point of contact is not listed, subcontractors may call the Webber Corporate Headquarters and ask to speak with the Estimating Department at (281) 987-8787.
If I have questions regarding Webber contract requirements, who do I contact?
Basic information, among other items, are:
- Insurance requirements
- DBE requirements
- Davis Bacon requirements
- A vendor registration process
- Access to Webber’s online bulletin board for information regarding current bidding opportunities, training, and subcontractor summits
Webber Procurement Personnel are responsible for identifying subcontractor-specific contractual requirements, negotiating subcontract terms, finalizing subcontract agreements, and communicating contractual requirements to Webber Operations personnel for enforcement purposes.
Subcontractors located and principally working in the North Texas area, may contact regional Webber procurement personnel at:
Webber North Texas Office
1900 Westridge Drive, Suite 100
Irving, Texas 75038
P 469.242.6408 / F 469.713.1413
Subcontractors located and principally working in the South Texas area, may contact regional Webber procurement personnel at:
Webber South Texas Office
14333 Chrisman Road
Houston, Texas 77039
P 281.987.8789 / F 281.442.5910
What are the Webber quote submission requirements?
Webber requires the following information from all potential subcontractors. If you have questions regarding the following requirements, please contact the appropriate Webber department as listed below.
|Item||Description||Webber Resource for
|Date||Date the quote is submitted||Estimating|
|Legal Name of Company||Company name as listed on articles of incorporation, federal/state tax
returns, etc. If known as or doing business under a different name,
clearly state “DBA” and company name in conjunction legal name of
|Complete Address||Address to which contractual documents and payments are to be
|Company Contact||Name of person to whom inquiries regarding the quote should be
|Phone/Fax/Email||Phone number, fax number, and email address for person to whom
inquiries regarding the quote should be directed
|Project Number||Project Number as listed on bid documents||Estimating|
|Project Name||Project name as listed on bid documents||Estimating|
|Mobilization||Number of mobilizations included in quote; minimum call-out fee for
|Business Certifications||If certified as an SBE, DBE, MBE, WBE, SDVBE, or any other
certification, provide copy(ies) of applicable certificates
|Pay Items||List all pay items included with each scope of work quoted. Include
unit of measure, quantity, unit price, and extended price.
|Inclusions/Exclusions||Where more than one line item may be assumed to be
provided/completed together, clearly state what is included in the
quote and what is excluded in the quote
|Multiple Items||If more than one item is being quoted, note whether or not you are
willing to perform specific item(s) only as determined by the Prime
Contractor for the same unit price as stated in your proposal. Is
quote “all or nothing.”
|Bonding||Does your quote include bonding? If not, note additional cost.||Procurement|
|Insurance||Does your company meet the Webber insurance requirements?||Procurement|
Does Webber allow lower tier subcontracting?
Only under specific circumstances does Webber allow lower tier subcontracting.
Under what circumstances does Webber allow lower tier subcontracting?
Webber subcontractors are allowed to further subcontract at lower-tiers under the following circumstances:
- The preferred lower tier subcontractor has been approved by Webber and the owner prior to executing a subcontract.
- All Webber contract provisions, including insurance requirements have been passed down to the lower tier subcontractor.
- All owner contract provisions have been passed down to the lower tier subcontractor.
- The lower tier subcontractor is aware of and understands Webber, owner, and regulatory requirements such as complying with jobsite security, OSHA, prompt pay, and Davis Bacon.
- The owner’s written approval of the lower-tier subcontractor must be received by Webber prior to initiating work.
What if I’m a DBE subcontractor?
DBEs may also engage lower-tier subcontractors. However, DBEs are required to self-perform a minimum of 30% or greater of the work scope in order to meet commercially useful function requirements.
Further, only the work self-performed by the DBE may be counted toward Webber DBE goals. If the lower tier subcontractor is not a DBE, Webber’s ability to meet its DBE goals may be negatively impacted. If the lower tier subcontractor is also a DBE, its work may count toward the Webber DBE goal pending owner approval.
Given the complexity of the DBE requirements, the following additional conditions must be met:
- The first-tier DBE subcontractor must notify Webber immediately of its intent to use one or more lower-tier subcontractors;
- If the intent to use lower-tier subcontractors is known at the time of bid, DBEs must inform Webber Estimating and Procurement personnel so that the information can be incorporated into Webber DBE Commitment Forms;
- The first-tier DBE must ensure that the lower tier DBE is performing work within its approved certification categories (NAIC code(s)) and that commercially useful function requirements are met; and
- The independent control and day-to-day operations of each DBE must be maintained (including the use of jobsite personnel, equipment, material, etc.).
NOTE: If a DBE knowingly fails to obtain approval of lower tier subcontractors and reports its work on a project as 100% self-performed, this may constitute fraud. In cases of fraud, Webber will take immediate action including but not limited to subcontractor termination and reporting the fraudulent activity to the contracting authority.
If I am lower tier subcontractor and I’m having issues with the first tier subcontractor, what should I do?
While Webber does not have a contractual relationship with lower tier subcontractors, there are circumstances under which lower tier subcontracting can negatively impact a Webber project. In light of this, Webber Operations personnel are available to any and all approved subcontractors, suppliers, and manufacturers associated with Webber projects.
Webber Project Managers should be contacted immediately if any of the following conditions occur:
- The first tier subcontractor exhibits indications of financial instability;
- Prompt payment provisions are not met;
- Explicit or implied direction is given that is in conflict with local, state, or federal regulatory compliance requirements;
- Fraudulent, unlawful, or unethical business practices occur; or
- Any activity or action occurs that could impede Webber’s successful delivery of its project.
I need further clarification. Where can I go for help?
Webber is committed to the success of its subcontractors. Our commitment to delivering quality work, on time and on budget, in part depends on our ability to successfully partner with companies of all sizes and capacities. We understand the challenges associated with navigating the contractual environment of publicly funded projects and we have resources to help.
Subcontractors seeking guidance on active Webber projects should contact the assigned Webber Project Manager. Subcontractors seeking opportunities or preparing quotes for upcoming Webber pursuits should contact the Webber Estimating Department or appropriate regional Webber Procurement personnel.
What is the Davis Bacon Act?
The Davis Bacon Act is administered by the U.S. Department of Labor (DOL) and was established in 1931 to assure that local workers are paid prevailing wage rates. Applicable projects including all those involving the United States or District of Columbia in the construction, alteration, and/or repair of public buildings or public works. Davis Bacon applies to prime contractors and is a pass-through requirement for all construction-related subcontractors.
In general Davis Bacon applies to all Federal-aid infrastructure and public works projects over $2,000. When public owners advertise projects, they include a reference to the applicability of Davis Bacon. A Wage Determination is provided along with Form 1273 (required attachment for all contracts and subcontracts) which includes required contractual clauses as follows:
- Minimum Wages
- Payrolls and Basic Records
- Apprenticeships and Trainees
- Compliance with Copeland Act Requirements
- Contract Termination; Debarment
- Compliance with Davis Bacon Act Requirements
- Disputes Concerning Labor Standards
- Certification of Eligibility
What is the Copeland Act?
The Copeland “Anti-Kickback” Act prohibits federal contractors or subcontractors engaged in building construction or repair from inducing an employee to give up any part of the compensation to which he or she is entitled under his or her employment contract and requires such contractors and subcontractors to submit weekly statements of compliance.
What is a Wage Determination?
A wage determination contains a comprehensive listing of the various job classifications that are likely to be found on a particular project based on the nature and scope of the work. The wage determination provides the minimum “prevailing” wages and fringe benefits rates to be applied to various classifications of laborers and mechanics employed under the contract.
How is Davis Bacon Compliance Monitored?
Davis Bacon compliance is monitored through the collection of weekly payroll data. A public owner may elect to use USDOL Form WH-347 or they may provide their own form and statement of compliance.
By signing a “statement of compliance” a contractor or subcontractor is “certifying” that the following statements for the pay period are correct:
- The required information is being maintained and is correct and complete;
- Each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR Part 3; and
- Each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification(s) of work performed, as specified by the applicable wage determination incorporated into the contract.
What has to be included in Payroll Submissions?
Weekly payroll statement must include the following information:
- Name of each worker
- Employee identification number (i.e. the last four digits of the employee’s social security number)
- Worker classification(s) (note: workers may perform in multiple classifications and must be paid accordingly)
- Hourly rates of wages paid
- Daily and weekly number of hours worked
- Deductions (fringe benefits, etc.)
- Actual wages paid (may include non-project work)
Are Electronic Signatures Acceptable?
Yes. USDOL permits the use of electronic submittals and electronic signatures for the contractor’s and subcontractors’ weekly payroll. For more information, refer to guidance issued by USDOL on November 12, 2004 titled, “Electronic Signatures and the Copeland Act.”
How is “Certified” Payroll Information Collected?
Currently, Webber verifies subcontractor compliance in one of three ways depending on the subcontractor; subcontractors submit the information directly to the owner (i.e. online with TxDOT), subcontractors send certified payrolls directly to Webber administrative personnel, or subcontractors report certified payroll data via web-based labor compliance software (currently being piloted). Subcontract provisions identify submission requirements.
How long do Employee Records have to be Retained?
Whether hardcopy or electronically, employee records including payroll records must be retained for the duration of the contract work and three years after final payment and all other pending matters are closed.
Webber takes its compliance obligations seriously and expects that subcontractors participating on its federal aid and public works projects do the same.
Assistance to subcontractors unfamiliar with Davis Bacon requirements is available. The Contracting Authority for assistance with:
- Understanding and applying the wage determination
- Completing certified payroll information
- Submitting certified payroll information
What are Webber’s prompt payment requirements?
In accordance with Texas state prompt payment laws, Webber is obligated to pay its subcontractors within 10 days of receipt of payment.
Is Webber obligated to meet prompt payment requirements regardless of the circumstances?
Webber, through its subcontract agreements, specifies circumstances under which it may withhold payment from subcontractors.
For what reasons may Webber withhold payment?
The most common reasons for delayed payment include:
- A subcontractor has demonstrated financial instability and has failed to pay its suppliers and lower tier subcontractors;
- A subcontractor has failed to provide lien releases and waivers in accordance with its subcontract provisions;
- A subcontractor has failed to meet federal regulatory requirements such as submission of weekly certified payroll;
- A subcontractor has failed to provide proof of insurance (i.e. its original insurance certificate has expired and the subcontractor fails to provide a new insurance certificate); and/or
- A subcontractor has failed to provide owner-approved documentation of jobsite quantities and work performed.
What can subcontractors do to ensure they’re paid promptly?
Subcontractors aid Webber in meeting prompt payment requirements by:
- Submitting accurate daily documentation of quantities completed and work performed;
- Documenting disputed quantities and work items and requesting that agreed-to quantities are processed for payment immediately;
- Paying its material suppliers and lower tier subcontractors promptly and providing all appropriate lien releases and waivers;
- Submitting weekly certified payroll in accordance with Davis Bacon requirements;
- Keeping its insurance certificate on file up to date; and
- Asking for assistance with any of the above listed items as soon as issues arise rather than when payment is due.
Does Webber withhold retainage?
Webber establishes retainage requirements on a case-by-case basis depending on risk and owner requirements and limitations.
If Webber withholds retainage, when is the retainage released?
In accordance with Texas Department of Transportation requirements, Webber must pay any retainage on subcontractor work within 10 calendar days after satisfactory completion of all the subcontractor’s work. Satisfactory completion is accomplished when:
- The subcontractor has fulfilled the Contract requirements of both the owner and the subcontract for the subcontracted work, including the submission of all information required by the specifications and the owner (i.e. final quantities, certified payroll, etc.); and
- The owner has inspected and approved the subcontractor’s work, and the final quantities of the subcontractor’s work hours have been determined and agreed upon.
Some contractors don’t pay retainage when a subcontractor’s work is complete. Why is this?
In some rare cases, an owner will issue a final partial acceptance of a subcontractor’s work. However, in general, owners complete final inspection and acceptance at the end of a project. Depending on the policy of the contracting authority, a provision for partial acceptance of the work may not exist.
In the case where partial acceptance is against an owner’s policy, if the prime contractor releases retention upon completion of a subcontractor’s work, it assumes all risk for deficiencies cited by the owner during the final inspection process and has no means for ensuring that deficiencies are addressed. In these cases, prime contractors generally hold retention until final acceptance has occurred in order to mitigate risks associated with subcontractor performance.
If I have extenuating circumstances, will Webber work with me to expedite payment or assist with suppliers?
Webber is committed to the success of its subcontractors. If extenuating circumstances arise, contact your Webber Project Manager for assistance. Webber may be able to modify its payment schedule or issue joint checks pending owner approval. Accommodation is made on a case-by-case basis at the discretion of the Webber Project Manager.
To facilitate open communication with our subcontractors, Webber hosts quarterly Subcontractor Forums and provides periodic subcontractor training. These Forums provide an opportunity to address issues, promote successes, and make the subcontractors aware of current and changing owner-related requirements. For a schedule of upcoming meetings and training opportunities, please visit our BULLETIN BOARD for details.