The check is sent to prime contractors who should then pay the sub. It doesn't always happen in a timely fashion.
The payment verification also applies to payment on change orders? Yes.The same process is in place.
You are familiar with Ferguson Enterprises Inc? Yes.
And you know Bobby? Yes.
You would agree that FEI is a real company? Yes.
Had a history in Detroit prior to Kilpatrick tenure? Yes.
Witness talks about design contract. Contractor responsible for designing through construction and completion.
Rataj brings up contract under Archer administration. Paid through various checks and balances? Yes.
Same with payment of contracts in subsequent administration? Yes.
Rataj asks him to focus on consulting contracting. Witness says a CS or Consulting Services contract is supposed to be for consulting services like designing a project. It could also be for any other type of financial contracts that required assistance.
Rataj now asks about construction contracts. Witness says they are what they seem like. Construction work for department. He lists various examples. "It's the hard labor doing the work."
Are construction contracts and consulting contracts billed the same way? Well they are advertised the same. But the process is different.
I'm not sure what Rataj's strategy is. If it's to lull the courtroom to sleep, it's definitely working.
Are consulting contracts bid out as lump sum bids? Can be.
Witness says a lump sum bid is where DWSD ask proposers for a price on the entire project. All DWSD wants to see is a bottom line without breakdown.
Witness describes a unit price contract.
It's a very detailed bid? Yes.
And sub-contractors always submit unit price bids to prime contractors? Yes.
Kwame just passes a note to Bernard via defense lawyers. Would love to know what that note says.
Rataj says there is an equalization process for construction contracts? Yes. I believe I explained that yesterday.
Someone please get this guy off the stand. Please, please, please.
Looking at purchasing ordinance. City of Detroit purchasing ordinance defines how the city of Detroit is to go out and procur various items. Construction, consulting contracts. It also provides definitions. It also established various percentages of equalization to be applied.
Rataj hands witness a document and asks him to tell jury what it is. It is Executive Order #4 by Archer. It delineates that the city of Detroit is to give preferential treatment, 30% of contracts, to Detroit-based businesses. at least 30%, if not more.
The equalization process does it apply to consulting process? The equalization process between 2002 and 2008 would not apply to consulting project. Or even construction management project with RFP.
You know what a minority business enterprise is? Yes.