Federal regulations require that Form FHWA-1273 be physically incorporated in every subcontract and lower tier subcontract on federal-aid funded projects. A recent audit of subcontract documentation by the FHWA found that contractors were inconsistent in complying with this requirement. In response to those findings, MDOT has created new 1302 subcontract forms to assist and ensure contractors are complying with the federal requirement.
The new Form 1302-FED incorporates the required Form FHWA-1273 as a physical part of the subcontract form thus relieving contractors and subcontractors of that administrative task. The new Form 1302-FED must be used when executing subcontracts on all projects with federal funding beginning with those projects let in the November 1, 2019, bid letting.
To create a distinction between subcontract forms to be used, MDOT also created Form 1302-State that must be used when executing subcontracts on projects with only state funding beginning with those projects let in the November 1, 2019, bid letting. Form 1302-State does not incorporate Form FHWA-1273 as there is no such requirement when projects are funded with only state funds.
Click here to view MDOT’s CONTRACTOR ANNOUNCEMENT on this matter.