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• DRAFT 9/5/00 Prompt Payment We will include the following clause or equivalent in each FHWA- assisted prime contract: The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 10 days from the receipt of each payment the prime contractor receives from the City of San Leandro. The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City of San Leandro. This clause applies to both DBE and non -DBE subcontractors. X1 i\'lonitoring and Enforcement Mechanisms ( §26.37) The City of San Leandro will assign a Resident Engineer (RE) or Contract Manager to monitor and track actual DBE participation through contractor and subcontractor reports of payments in accordance with the following: A. After Contract Award After the contract award, the City of San Leandro will review the award documents for the portion of items each DBE and first tier subcontractors will be doing and the dollar value of that work. With these documents the RE /Contract Manager will be able to determine the work to be performed by the DBEs or subcontractors listed. B. Preconstruction Conference I. A preconstruction conference will be scheduled between the RE and the contractor or their representative to discuss the work each DBE subcontractor will perform. 2. Before work can be started on a subcontract, the City of San Leandro will require that the contractor submit a completed "Subcontracting Request," Exhibit 16 -B of the LAPM. When the RE receives the completed form, it will be checked for agreement of the first tier subcontractor and DBEs. The RE will not approve the request when :it identifies someone other than the DBE or first tier subcontractor listed in the previously completed "Local Agency Bidder DBE Information." Exhibit 1 5 -G. The "Subcontracting Request" will not be approved until any discrepancies are resolved. If an issue cannot be resolved at that time, or there is some other concern, the RE will require the contractor to eliminate the subcontractor in question before signing the subcontracting request. A change in the DBE or first tier subcontractor may be addressed during a substitution process at a later date. 3. Suppliers, vendors. or manufacturers listed on the "Local Agency Bidder DBE Information" will be compared to those listed in the completed Exhibit 16 -I of the LAPM. Differences must be resolved by either making corrections or requesting a substitution. Page 4 of 9