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Prime Pays For Sub's Dbe Noncompliance Changes-deductive; Subcontractors

Tuesday, January 03, 2006 05:03 pm

Prime Pays For Sub's Dbe Noncompliance Changes-deductive; Subcontractors

A federal appeals court has ruled that a prime contractor bore responsibility for a subcontractor's failure to use an approved disadvantaged business enterprise (DBE).

The Arkansas State Highway Commission awarded a contract to Angelo Iafrate Construction, LLC to construct a bypass. The contract required Iafrate to subcontract at least ten percent of the work to DBE's. Iafrate had indicated on its bid form that it would subcontract $361,727 worth of hauling to NKP Trucking, a state approved DBE. The contract stated that no work designated for [...]

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