ADOT is required by law to collect consultant, subconsultant, and tier subconsultant payment information (a tier subconsultant is a company that subconsults to a subconsultant). This means that a prime consultant must enter all subconsultants’ payment information into the ADOT DBE System website.
Once ADOT has signed a contract with your firm, no later than 15 calendar days later, you must enter your project into the ADOT DBE System and add all of your subconsultants and tier subconsultants to the project. When adding a subconsultants and tier subconsultants to the project, you will need to input some information about its role in the project and whether they count towards the DBE goal. After having added all subconsultants and tier subconsultants, you must wait until your project is under way before reporting any payments.
After receiving your first payment from ADOT (and every month thereafter while the project is ongoing), you must submit information on the payments you have made to each of your subconsultants during the previous month into the DBE System by the 15th day of the current month (e.g., information for payments made in April must be submitted by May 15th).
To help you with this process, ADOT has created a DBE Contract and Labor Compliance Management System User Manual, which is available under Disadvantaged Business Enterprise (DBE) Program in the Engineering Consultants section of the ADOT website. A video is also available to guide you through this process.
Failure to report payments each month will result in sanctions for the prime contractor. For each subcontract on which the contractor fails to submit timely and complete payment information, ADOT will retain $1,000.00 as liquidated damages, from the monies due to the contractor. Liquidated damages will be deducted each month for each subcontract on which the contractor fails to submit payment information until the contractor provides the required information. After 90 consecutive days of non-reporting, the liquidated damages will increase to $2,000.00 for each subsequent month, for each subcontract on which the contractor fails to report until the information is provided.
Once a project is complete and all payments have been made and confirmed, the prime contractor must submit a Certification of Payments form for each DBE they utilized on the project. This form certifies that all payments have been made to the DBE subcontractor, and both the prime and subcontractor must sign the form. The Certification of Payments form can be found in the BECO section of the ADOT Website.