SDDOT / Project Development / Bid Letting / Contractor Info / Subcontract Requirements

Although this page is new to the South Dakota Department of Transportation's (SDDOT's) web sites in 2004, most of the following information has been contained in your South Dakota highway contracts or in the SDDOT Standard Specifications for Roads and Bridges for decades. In the narratives below, if you click on the underlined information, it will bring you to the most current version of the electronic documents. To return to this page, please click on your "Back" button.

If you are a prime contractor on a SDDOT highway project and you plan to sublet a portion of the work, the first step is to complete a Request to Sublet Work, Form DOT-202. This form must be signed by the prime contractor and sent to the address listed in the lower left-hand corner of the form PRIOR to such sublet work being performed. If a subcontractor plans to sublet a portion of their work, the Request to Sublet Work form must be signed by the PRIME CONTRACTOR then submitted to the DOT. The SDDOT Subletting of Contract Standard Specification, Section 8.1 stipulates the requirements for obtaining written consent to sublet work, limits the percent of work that may be sublet, defines what the Department will not consider as subcontracting and defines the project limits.

The prime contractor shall insert in each subcontract all of the stipulations contained in the Required Contract Provisions, FHWA-1273, and further require their inclusion in any lower tier subcontract or purchase order that may in turn be made. The Required Contract Provisions shall not be incorporated by reference in any case. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with these Required Contract Provisions. The Federal Highway Administration's (FHWA's) Required Contract Provisions contain clauses that a breach of any of the stipulations may be grounds for termination of the contract and may also be grounds for debarment. The foregoing stipulations are contained in Part I, paragraphs 2-4 of the Required Contract Provisions.

The SDDOT Highway-Heavy Wage Rates are approved by the SD Transportation Commission and shall be attached to and made part of the contract and subcontract(s) in accordance with FHWA-1273, Parts I and IV. These wage rates apply to SDDOT's highway-heavy construction or repair projects that are Federal-funded in excess of $2,000, and to State-funded SDDOT projects awarded with $100,000 or more of SD's State Highway funds. As indicated, the contractors must pay the highest rate for the job class attending the county in which the work is performed. The current SDDOT Wage Rates are higher in all classifications than the current USDOL Davis-Bacon rates. The SDDOT Highway-Heavy Wage Rates are statewide (apply to all counties in South Dakota). The SDDOT Payroll Forms & Instructions are recommended, but the use of the forms is not mandatory unless stipulated by the Department's wage survey requirements.

The SDDOT Prompt Payment Standard Specification, Section 9.13, stipulates that the contractor shall pay subcontractors or suppliers within 15 days of receiving payment for work that is submitted for progress payment by the Department. Retainage on subcontract work shall be released within 15 days after the work is satisfactorily completed. The prompt payment and release of retainage applies to all tiers of subcontracts.