Section 2: Payment Reporting in DMS
Anchor: #i1000884Understanding the Audit Process
After a contract record has been created in DMS and TxDOT begins making payments to the prime contractor, the contract is ready for auditing. Auditing is generated on a monthly basis.
The following image represents the audit process:
Figure 12-1. Audit process for a contract record in DMS.
A prime contractor working on federal-aid projects is responsible for the reporting of all payments to its DBE subcontractors in DMS. DBE subcontractors are responsible for verification and confirmation of payment data received from the prime contractor in DMS. The prime contractor will include payment entries to non-DBE subcontractors whenever there is a DBE associated with a second or multi-tiered subcontract. A DBE prime contractor is responsible for reporting payments to all subcontractors in DMS.
The prime contractor will report payments, after work begins, to meet the DBE goal and for DBE race-neutral participation on projects with and without DBE goals. These reports will be due within fifteen days after the end of a calendar month. These reports will be required until all DBE subcontracting or material supply activity is completed.
See the reporting timeline example below:
|
Date |
Action |
|---|---|
|
March 10th |
TxDOT pays prime contractor. |
|
March 20th |
Prime contractor pays DBE subcontractor. |
|
April 5th |
DMS alerts prime contractor to report March subcontractor payments. |
|
April 15th |
Prime contractor completes entering payments. |
|
April 22nd |
DBE subcontractor confirms payment received. |
|
April 23rd – 30th |
District staff completes reporting audit. |
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Subcontractor Verification of Payments
DMS will notify a subcontractor by system generated e-mail when payment is recorded by the prime contractor. Once notified, the subcontractor will have seven days to log in to DMS and agree or disagree with payment reported by the prime contractor.
Step 1: Click the link provided in the e-mail below:
Step 2: After clicking the link, the subcontractor will be directed to the DMS log in interface to sign in. After log in, DMS will navigate directly to the incomplete audit listed in the e-mail.
Note: If the e-mail link is not available, use the following instructions to navigate to the incomplete audit.
- Anchor: #FPXTRMSK
- Log in to DMS. Anchor: #TQHHTKQU
- Click View in the left margin. Anchor: #CEYSKSER
- Click My Contract Audits. Anchor: #FSLERRAD
- Click on Incomplete to report payments and continue to Step 3 below.
Step 3: Click Confirm payment received.
Step 4: Verify the payment amount and details provided by the prime contractor.
If the subcontractor selects Correct for the payment, then they are asked to enter the payment date and if they were paid within ten days.
If the subcontractor selects Incorrect for the payment total, DMS will prompt the subcontractor to enter the amount it was paid. The subcontractor is then asked to enter the payment date and if it was paid within ten days. See the following subsection, Payment Discrepancy for additional actions.
Step 5: Identify if payment is final or not. By selecting Yes the subcontractor will be removed from future audits.
Step 6: Identify if the prime contractor is withholding retainage and the amount retained.
Step 7: Attach file(s) as necessary.
Step 8: There are two comment boxes that can be used to communicate the issue with payment.
- Anchor: #NORHCBBB
- The first box, Public Comments, is visible to the prime contractor and TxDOT compliance staff. Anchor: #i999734
- The second box, Private Comments, is visible only to the TxDOT compliance staff.
Step 9: Check the confirmation statement: I am submitting this form with information that I understand to be correct and accurate.
Step 10: Click Save.
Payment Discrepancy
If a prime contractor and subcontractor disagree on an amount paid, the system creates a discrepancy. The system sends an e-mail message to the contractors to notify them of the issue and request they resolve the discrepancy. If they are unable to resolve the discrepancy, the district staff may be required to take action.
When a subcontractor selects Incorrect in Step 4 above, a discrepancy is created and the following process is required:
- Anchor: #DCXNDSKA
- The monthly payment record will be sent back to the prime contractor by DMS to review the payment difference and comments that the subcontractor has made. Anchor: #DJQUOPIS
- The prime contractor may correct an error and re-submit to the subcontractor for review again. Anchor: #GPPTXOJR
- The subcontractor and the prime contractor should work together to resolve any payment discrepancies. After two attempts to resolve the discrepancy, DMS will turn over the audit record to the district staff.
Subcontractor and Material Supplier Complaints
Complaints must be in writing. The complaint should identify specifics regarding the nonpayment, payment discrepancy, timeliness (10 days) and any attempts to resolve the payment issue with the prime contractor.