Contingent fees

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(a) A contractor shall not offer to pay any fee or other consideration that is contingent on the making of a contract.

(b) Every contract shall contain the following prohibition against contingent fees: “The contractor warrants that no person or selling agency has been employed or retained to solicit or secure the contract upon an agreement or understanding for a commission, percentage, brokerage fee, or contingent fee, except bona fide employees or bona fide established commercial or selling agencies maintained by the contractor for the purpose of securing business. For a breach or violation of this warranty, the District shall have the right to terminate the contract without liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of the commission, percentage, brokerage, or contingent fee.

(c) A District employee shall not solicit or secure, or offer to solicit or secure, a contract for which the employee is paid or is to be paid any fee or other consideration contingent on the making of the contract between the employee and any other person.

(Apr. 8, 2011, D.C. Law 18-371, § 416, 58 DCR 1185.)

Section References

This section is referenced in § 1-1161.01.


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