DBE Subcontractors Payment Policy

Introduction

This policy outlines our commitment to ensuring timely payment to Disadvantaged Business Enterprises (DBEs) subcontractors involved in all covered project types:

• DOT-assisted projects

We recognize the critical importance of prompt payment in supporting the financial stability and growth of DBE businesses.

Policy Statement

Shaeba Corp is committed to fostering a fair and equitable business environment for all subcontractors, particularly Disadvantaged Business Enterprises (DBEs). To this end, we prioritize the timely payment of all subcontractor invoices. This policy mandates prompt payment for completed work on all relevant projects, including those listed in the introduction, as covered project types. By ensuring that subcontractors are paid promptly, we aim to support their financial stability, business growth, and continued participation in our projects.

Policy Implementation

1. Contractual Requirements

   • All relevant contracts (refer to supported project types listed in introduction) will include the mandated prompt payment clause.

   • Contract documents will clearly define the terms of payment, including due dates and penalties for late payments.

2. Recipient Compliance and Enforcement

   • Recipient Responsibility: The recipient must implement appropriate mechanisms to ensure compliance with prompt payment and retainage requirements by all program participants. This includes utilizing legal and contract remedies available under Federal, state, and local law.  

   • Contract Remedies: Contract documents will outline specific remedies or penalties for breaches of the prompt payment or release of retainage contract clause.

   • Compliance Mechanisms: The recipient’s DBE program plan will detail additional compliance mechanisms, subject to approval by the appropriate Operating Administration (OA).

3. Enforcement Mechanisms

   • Some, but not all, of the mechanisms a recipient may use to enforce compliance with the prompt payment requirement are contained in 49 C.F.R. § 26.29 (2016). For example, recipients may require the contractor to obtain its prior written consent for good cause delays in or postponement of payment. The available remedies should be set forth in the DBE program plan, which is subject to approval by the appropriate OA.

4. Enforcement Flexibility

   • The rule authorizes, but does not require, recipients to use the particular methods described in section 26.29. This does not mean, however, that enforcement of the prompt payment or release of retainage requirement itself is optional. Recipients are expected to enforce the terms of the contract that specifies what happens if this provision of the contract is breached. If the recipient does not choose to use the methods mentioned in the rule, then it must use other methods that are equally effective in achieving compliance. This information must be set forth in the contract and in the recipient’s DBE program plan document.

5. Dispute Resolution

   • The DBE program plan must also describe the process used by the recipient, if any, to resolve disputes concerning the subcontractor’s performance or indicate what happens in the event of a dispute (e.g., governed by the terms of the relevant prime or subcontract document). The appropriate OA is expected to review the DBE program plan to ensure the process is adequately described.

6. Monitoring and Enforcement

   • Implement a robust monitoring system to track payment compliance.

   • Conduct regular reviews of payment records and subcontract agreements.

   • Establish a complaint process for subcontractors to report payment issues.

   • Investigate all complaints promptly and take appropriate corrective action.

   • Impose penalties for non-compliance, including but not limited to contract termination or debarment.

7. Subcontractor Support

Shaeba Corp is committed to providing comprehensive support to subcontractors, particularly DBEs, to ensure their success and facilitate smooth project execution. Our support includes:

• Dedicated Subcontractor Support Personnel: A dedicated professional will be available to address subcontractor inquiries, concerns, and challenges related to payment, contract terms, project management, and other relevant issues.

• Payment Assistance: Our team will provide guidance on payment processes, dispute resolution, and available resources to help subcontractors navigate potential payment delays or discrepancies.

• Contractual Support: Subcontractors will have access to support in understanding and complying with contract terms and conditions, including payment schedules, change orders, and dispute resolution clauses.

• Financial Resources: We will provide information on available financial resources, such as bonding assistance, lines of credit, and working capital loans, to help subcontractors manage cash flow and project costs.

• Business Development Support: We will offer resources and guidance on business development strategies, including networking opportunities, bid preparation assistance, and mentorship programs.

• Training and Education: We will provide training and educational workshops on topics such as contract management, financial management, and project management to enhance subcontractor capabilities.

• Dispute Resolution Services: We will facilitate mediation and dispute resolution processes to help resolve conflicts between subcontractors and prime contractors in a timely and efficient manner.

By providing these comprehensive support services, Shaeba Corp aims to foster strong and collaborative relationships with subcontractors, contributing to the overall success of our projects.

8. Performance Measurement

   • Establish key performance indicators (KPIs) to measure the effectiveness of the prompt payment policy.

   • Track payment compliance rates, average payment delay times, and the number of payment-related complaints.

   • Analyze performance data to identify areas for improvement and adjust the policy as needed.

Policy Communication

Effective communication of this policy is essential to ensure its successful implementation and compliance. To achieve this, Shaeba Corp will undertake the following communication strategies:

• Dissemination: The policy will be electronically distributed to all prime contractors, subcontractors, and relevant staff. Hard copies will also be made available upon request.

• Training: Mandatory training sessions will be conducted to educate all involved parties about the prompt payment policy, its objectives, and their responsibilities. Training materials will be provided in both digital and print formats.

• Public Accessibility: The policy will be prominently displayed on the Shaeba Corp website for easy access and transparency.

• Internal Communication: Regular internal communications, such as newsletters and company meetings, will highlight the importance of prompt payment and the benefits of policy adherence.

• Subcontractor Outreach: Dedicated outreach efforts will be made to inform subcontractors, particularly DBEs, about their rights and the resources available to them under this policy.

By employing these communication channels, Shaeba Corp aims to foster a culture of prompt payment and transparency throughout the organization and its supply chain.

Policy Review and Update

• Review this policy annually to ensure its effectiveness and alignment with relevant regulations.

• Update the policy as needed to reflect changes in laws, regulations, or best practices.

Contact Information

For questions or concerns regarding this policy, please contact: Nazmul Siddiqui, CEO, nsiddiqui@shaeba.net