Federal Highway Administration (FHWA) recently completed a review of a sample number of subcontracts executed for performance on federally funded Indiana Department of Transportation (INDOT) highway contracts. FHWA found that a significant number of contracts did not contain form FHWA-1273, Required Contract Provisions, Federal-Aid Construction Contracts. This form must be physically incorporated into subcontract agreements as required per federal regulation 23 CFR 633.102 (e). Section (e) language is shown below:
(e) The contractor shall insert in each subcontract, except as excluded by law or regulation, the required contract provisions contained in Form FHWA-1273 and further require their inclusion in any lower tier subcontract that may in turn be made. The required contract provisions of Form FHWA-1273 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 the requirements contained in the provisions of Form FHWA-1273.
Prime contractors may insert the language of form FHWA-1273 into the body of their subcontract document or include a statement requiring compliance to the form contents with a reference to a subcontract attachment. Prime contractors may not reference the form only or reference an external link to the form.
INDOT appreciates your compliance effort.
If you have questions, please contact ICI’s Dan Osborn at (317) 634-7547.