Section 9.325 - Performance(a) An SBE contractor or subcontractor shall comply with the terms of the contract or subcontract for which it was selected.(b) Work products, services, and commodities must meet contract specifications.(c) The SBE's work performance must include being responsible for:(1) the performance of the work subject to the contract and for the execution of its responsibilities by actually performing, managing, and supervising the work involved; and(2) the provision of the materials and supplies used in the performance of its contract, unless the contract provides for labor services only and is approved by the department, and includes: (A) negotiation of the price of the materials and supplies;(B) determination of the quality, if applicable, and quantity of the materials and supplies;(C) ordering of the material and supplies;(D) installation of the material, if applicable; and(E) payment for the material.(d) An SBE's performance should not include a role that is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of SBE participation. In determining whether an SBE is an extra participant, the department will examine similar transactions, particularly those in which SBEs do not participate.(e) An SBE must be responsible for at least 25 percent of the total cost of its contract with its own work force or, if a lesser percentage is expected under normal industry practice for the type of work involved, may not subcontract a greater portion of the work of the contract than would be expected on the basis of normal industry practice for that type of work.43 Tex. Admin. Code § 9.325
The provisions of this §9.325 adopted to be effective September 1, 2012, 37 TexReg 5320; Amended by Texas Register, Volume 43, Number 37, September 14, 2018, TexReg 6000, eff. 9/19/2018