5 Steps to Starting a Construction Diversity Program—Where To Begin?
There are generally three drivers that strongly encourage or require public sector agencies such as municipalities, counties, or public works departments to initiate a construction diversity program.
These are:
- Requirements associated with funding sources
- Policy defined by its governing board
- Public advocacy to have publicly funded expenditures procured in ways that support inclusion of diverse businesses representative of all taxpayers in a community, district or region
Other drivers may include a statewide or municipal disparity study or leadership and successes in the private sector associated with corporate social responsibility initiatives—locally or regionally.
Righting a History of Discrimination
It is noteworthy to remember that these efforts are intended to address long histories of discrimination faced by minorities and women, initially addressed through Executive Orders by President Kennedy (10925, 11114) and Johnson (11246) and later followed by Title VII of the 1964 Civil Rights Act. Specifically, these orders and subsequent legislation focused on access to education and employment giving special consideration to historically excluded groups such as minorities and women.
Goals Not Quotas
The basic approach to creating a construction diversity program is to utilize targeted goals and timetables, not racial quotas. In order to implement goals that are achievable with respect to business inclusion in construction procurement activities, a census of diverse businesses is necessary, including understanding their skills, expertise, project history, bonding levels, and workforce capabilities.
Consult with Experts on Construction Delivery
Staff within most public agencies are not familiar with:
- Subcontracting and partnering practices associated with general contracting
- Construction management or other project delivery methods
- Specific construction trades and specialties required to build the finished project
This knowledge gap is best addressed through the focus and expertise of subject matter experts who have the experience and background in construction to incorporate construction specific procurement processes into the program.
Here’s How to Begin Crafting a Construction Diversity Program
- Identify all minority and women-owned construction-related business enterprises within a 60-90 mile radius of your geographic project area.
- Determine their general and specific technical trade areas, the type of clients for whom they have experience, and whether their role was as a prime contractor, subcontractor or supplier.
- Based on whether your work is commercial, institutional, retail or specialized, cross-reference and sort the minority and women-owned construction-related business enterprises on relevant experience, size, time in business, and clients served.
- Assess whether your typical construction delivery method, size of bid packages, bonding and insurance requirements and payment cycles are “friendly” towards small and diverse businesses.
- Appoint a small and diverse business program manager to learn the “ins and outs” of this area of procurement diversity and empower them to remove barriers and policies that prohibit your company from meeting aspirational diverse vendor goals.
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