Potential violations during contract performance.
Denver Revised Municipal Code § 28-74
in effectSec. 28-74. - Potential violations during contract performance.
(a) A contractor or consultant that has been awarded a contract based upon a given level of MWBE participation shall not, at any time before or during the performance of such contract:
(1) Fail to in fact utilize an MWBE that was originally listed at bid opening or proposal submission in order to satisfy the participation goal, and that submitted a timely letter of intent, without substituting with another MWBE performing the same commercially useful function and dollar amount, or demonstrating each element of good faith efforts, as defined in subsection (c) hereof, to substitute an MWBE; or
(2) Fail to allow an MWBE functioning as a subcontractor, subconsultant, joint venturer, supplier, manufacturer, manufacturer's representative, or broker to perform the commercially useful function, the value of which was originally counted for that MWBE in awarding the contract; or
(3) Modify or eliminate all or a portion of the scope of work attributable to an MWBE upon which the contract was awarded without first complying with section 28-73, unless directed by the city; or
(4) Terminate an MWBE originally utilized as a subcontractor, subconsultant, joint venturer, supplier, manufacturer, manufacturer's representative or broker in order to be awarded the contract without complying with section 28-73; or
(5) Retaliate against any MWBE that reports issues to the DSBO or user departments; or
(6) Participate in a conduit relationship with an MWBE scheduled to perform work on the contract; or
(7) Otherwise fail to meet the participation goal without complying with good faith efforts requirements; or
(8) Commit any other violation of this article III and its divisions, or rules and regulations promulgated thereunder, which constitutes a material breach of the contract, not mentioned above.
(b) Any action by a contractor or consultant in violation of subsections (a)(1) through (8) hereof, shall constitute a material breach of the contract that shall entitle the city or private owner to exercise all of its rights at law or equity for such material breach, in addition to exercising any of the other sanctions set out in section 28-76. If, following contract award, an MWBE has its certification terminated for reasons other than expiration of certification, or graduation from certification under section 28-55, or an MWBE fails to perform a commercially useful function, the value of which was originally counted for that MWBE, as applicable, in awarding the contract, or an MWBE voluntarily withdraws its MWBE participation on the contract and the contractor or consultant can demonstrate that such termination or failure did not result from any action or inaction, whether direct or indirect, of or by the contractor or consultant, such termination of certification or failure to perform a commercially useful function shall not be deemed a breach of the contract; provided, however, that the requirements of section 28-73 are satisfied.
(c) In the event that a contractor or consultant must add or replace an MWBE subcontractor, subconsultant, joint venturer, supplier, manufacturer, manufacturer's representative or broker or in the event that a new scope of work is added to the ongoing contract, and the contractor or consultant in such event is in noncompliance with maintenance of the original participation goal upon which the contract was awarded, due to failure to utilize additional MWBEs, the contractor or consultant shall be required to demonstrate good faith efforts in compliance with section 28-60, section 28-64, or section 28-73 as applicable. Failure of a contractor or consultant to show good faith efforts shall render its contract performance in noncompliance with this article III and its divisions.
(Ord. No. 286-20, § 2, 4-13-20)
Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH28HURI_ARTIIINOCOCOREREPRDECOSE_DIV3NOCOCOREREPRDECOSE_SDIIICOEN_S28-74POVIDUCOPEFetched: 10/27/2026