Form CEM-2407 "Disadvantaged Business Enterprises (Dbe) Joint Check Agreement Request" - California

What Is Form CEM-2407?

This is a legal form that was released by the California Department of Transportation - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on February 1, 2019;
  • The latest edition provided by the California Department of Transportation;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form CEM-2407 by clicking the link below or browse more documents and templates provided by the California Department of Transportation.

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Download Form CEM-2407 "Disadvantaged Business Enterprises (Dbe) Joint Check Agreement Request" - California

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STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION
DISADVANTAGED BUSINESS ENTERPRISES (DBE)
JOINT CHECK AGREEMENT REQUEST
CEM-2407 (REV 02/2019)
This form must be submitted and approved prior to the use of a joint check
Name of Prime Contractor
Contract Number
Name of Contractor issuing joint check
Name of DBE Contractor
Name of Material Supplier
Bid Item numbers and descriptions of work to be performed by DBE
Who initiated the request?
Reason for request
Comments
Information:
The use of joint checks is subject to review by the Department of Transportation (Caltrans) Office of Business and Economic Opportunity and
Division of Construction.
Read and follow the procedures as outlined in this form. Failure to follow the conditions as described in the Standard Specifications, or if
Caltrans determines that the arrangement results in a lack of independence or commercially useful function (CUF) on the part of the DBE
involved, will result in disallowance of credit toward the goal for claimed DBE participation. The fact that a DBE is certified will not be
determinative on whether the DBE is performing a CUF so that credit for DBE participation is permissible.
When joint checks are used in DBE subcontracting, DBE credit toward the contract goal will be allowed only when the DBE subcontractor is
performing a CUF in accordance with the Code of Federal Regulations, Title 49 (49 CRF), Section 26.55 (c)(1), "How is DBE participation
counted toward goals?":
"A DBE performs a CUF when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually
performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible, with respect to materials
and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where
applicable) and paying for the material itself."
When using a joint check, the following conditions are required. Failure to comply with the conditions below will disqualify DBE participation and
may adversely impact a contractor's bidding status.
1.
The Disadvantaged Business Enterprises Joint Check Agreement Request must be fully completed and approved by Caltrans
prior to issuance of any joint check.
The Disadvantaged Business Enterprises Joint Check Agreement Request form acts as a written joint check agreement among the parties
providing full and prompt disclosure of the expected use of joint checks.
2.
The entity issuing the joint check acts solely to guarantee payment to the supplier.
49 CFR, Part 26 requires that the DBE's own funds are used to pay for the material and it is not appropriate for the funds to come from the
contractor to the material supplier. Joint checks from a prime contractor to the DBE for the costs of items procured by the DBE from the
material supplier may be regarded as representing the DBE's own funds.
3.
The DBE must release the joint check to the supplier.
Joint checks issued by the contractor must be delivered or mailed to the DBE for presentation and payment to the DBE's suppliers. The
contractor shall not make the payment directly to the supplier.
4.
Any documentation requested by Caltrans to confirm the proper use of joint checks shall be supplied to Caltrans within 10 days of the date
of the request. Failure to provide requested information timely will result in disallowance of DBE credit.
For individuals with sensory disabilities, this document is available in alternate formats. For alternate format information, contact the Forms
ADA Notice
Management Unit at (916) 445-1233, TTY 711, or write to Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION
DISADVANTAGED BUSINESS ENTERPRISES (DBE)
JOINT CHECK AGREEMENT REQUEST
CEM-2407 (REV 02/2019)
This form must be submitted and approved prior to the use of a joint check
Name of Prime Contractor
Contract Number
Name of Contractor issuing joint check
Name of DBE Contractor
Name of Material Supplier
Bid Item numbers and descriptions of work to be performed by DBE
Who initiated the request?
Reason for request
Comments
Information:
The use of joint checks is subject to review by the Department of Transportation (Caltrans) Office of Business and Economic Opportunity and
Division of Construction.
Read and follow the procedures as outlined in this form. Failure to follow the conditions as described in the Standard Specifications, or if
Caltrans determines that the arrangement results in a lack of independence or commercially useful function (CUF) on the part of the DBE
involved, will result in disallowance of credit toward the goal for claimed DBE participation. The fact that a DBE is certified will not be
determinative on whether the DBE is performing a CUF so that credit for DBE participation is permissible.
When joint checks are used in DBE subcontracting, DBE credit toward the contract goal will be allowed only when the DBE subcontractor is
performing a CUF in accordance with the Code of Federal Regulations, Title 49 (49 CRF), Section 26.55 (c)(1), "How is DBE participation
counted toward goals?":
"A DBE performs a CUF when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually
performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible, with respect to materials
and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where
applicable) and paying for the material itself."
When using a joint check, the following conditions are required. Failure to comply with the conditions below will disqualify DBE participation and
may adversely impact a contractor's bidding status.
1.
The Disadvantaged Business Enterprises Joint Check Agreement Request must be fully completed and approved by Caltrans
prior to issuance of any joint check.
The Disadvantaged Business Enterprises Joint Check Agreement Request form acts as a written joint check agreement among the parties
providing full and prompt disclosure of the expected use of joint checks.
2.
The entity issuing the joint check acts solely to guarantee payment to the supplier.
49 CFR, Part 26 requires that the DBE's own funds are used to pay for the material and it is not appropriate for the funds to come from the
contractor to the material supplier. Joint checks from a prime contractor to the DBE for the costs of items procured by the DBE from the
material supplier may be regarded as representing the DBE's own funds.
3.
The DBE must release the joint check to the supplier.
Joint checks issued by the contractor must be delivered or mailed to the DBE for presentation and payment to the DBE's suppliers. The
contractor shall not make the payment directly to the supplier.
4.
Any documentation requested by Caltrans to confirm the proper use of joint checks shall be supplied to Caltrans within 10 days of the date
of the request. Failure to provide requested information timely will result in disallowance of DBE credit.
For individuals with sensory disabilities, this document is available in alternate formats. For alternate format information, contact the Forms
ADA Notice
Management Unit at (916) 445-1233, TTY 711, or write to Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION
DISADVANTAGED BUSINESS ENTERPRISES (DBE)
JOINT CHECK AGREEMENT REQUEST
CEM-2407 (REV 02/2019)
I have read and understand the above information and acknowledge the information provided on this form is true and accurate.
AUTHORIZED PRIME CONTRACTOR REPRESENTATIVE
Signature
Print Name
Title
Date
AUTHORIZED CONTRACTOR ISSUING THE JOINT CHECKS (If other than the prime)
Signature
Print Name
Title
Date
AUTHORIZED DBE CONTRACTOR REPRESENTATIVE
Signature
Print Name
Title
Date
AUTHORIZED MATERIAL SUPPLIER REPRESENTATIVE
Signature
Print Name
Title
Date
CALTRANS USE ONLY
Approved
Denied
Reason for denial
Resident Engineer's Signature
Print Name
Title
Date
Instructions
This form is required as part of the approval process for the use of joint checks under the Disadvantaged Business Enterprises (DBE) program
set forth by Federal Highway Administration's policy on the use of joint checks on federal-aid highway projects.
The top of the form requires specific information regarding the construction project: contract number, prime contractor name, name of the
contractor issuing the joint check (if other than the prime), DBE contractor name, material supplier name, bid items and descriptions, comments
and who initiated the request.
This form requires the signature of the authorized representatives of the prime contractor, name of the contractor issuing the joint check (if other
than the prime), DBE contractor, and material supplier. This form must be submitted and approved by the resident engineer prior to the use of
joint checks.
COPY DISTRIBUTION:
Original - Project File
Copy - DBE Subcontractor
Copy - District Labor Compliance Office
For individuals with sensory disabilities, this document is available in alternate formats. For alternate format information, contact the Forms
ADA Notice
Management Unit at (916) 445-1233, TTY 711, or write to Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
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