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Renee DuFour - Knutson Construction

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Knutson Construction's presentation from One Minneapolis: A Call to Action! conference December 2, 2011 hosted by the Minneapolis Department of Civil Rights

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Page 1: Renee DuFour - Knutson Construction

Renee DuFour

Project Manager

Knutson Construction

Page 2: Renee DuFour - Knutson Construction

Statistics & Data

o General contractors are typically given a goal to reach for a particular project

o The project owner generally mandates the goal based on their funding source

o Contracting outcomes are subject to interpretation

Page 3: Renee DuFour - Knutson Construction

Best Practice Suggestions

o Prevent Pass Through Enterpriseso Ensure firms supply their own workforce vs.

subcontracting labor to another firm

o Teach & Provide Mentorshipo Encourage partnerships with larger contractors in the

same field

o Know Your Supplierso Ensure material suppliers are buying direct from

manufacturers vs. through larger non-minority suppliers

o Encourage and facilitate partnerships with manufacturers directly

Page 4: Renee DuFour - Knutson Construction

Root Causes of the Disparities

o Many contracting firms are started by individuals who knew a trade

o Many contracting firms are passed down through generationso Financing

Page 5: Renee DuFour - Knutson Construction

Best Practice Suggestionso Create Opportunities

o Encourage strong female and minority workers to consider going into business for themselves

o Offer them contracting opportunities when possible

o Look for ways to develop opportunities

o Create Connections o Contact specific unions for

special projects

o Trade organizationso Competitorso Minority trade

development organizations: MEDA, NAMC, AWC, etc.

o Volunteer & Reach Outo Volunteer for

organizations working to increase participation

Page 6: Renee DuFour - Knutson Construction

Agency Enforcement Strategies

o Work with the Authority having jurisdictionoBe upfront and work closely on:

oDefinitionsoReporting methodsoFrequency of reportsoContent

oKeep the AHJ informed

Page 7: Renee DuFour - Knutson Construction

Potential Issues with Union/Non-Union

o Unions exist to strength their members’ workplace rights

o Lack of consistency among the trade unions with regards to increasing participation of firms

o Unions vary on their approach to increasing diversity of their membership

Page 8: Renee DuFour - Knutson Construction

Best Practice Suggestions

o Review GoalsoWith the local building trade associationoWith local building trade unions; request and

determine areas of assistance/participation

o Keep Union InformedoOf progress, issues, and concernso Involve in solving problems and finding

solutions

Page 9: Renee DuFour - Knutson Construction

Trust Issues with Minority Contractors

o Safety

o Quality workers

o Keeping commitments of doing agreed upon work

o Paying labor and material suppliers

o Union dues

Page 10: Renee DuFour - Knutson Construction

Best Practice Suggestions

o Start Small

o Keep documentation of all agreements

o Stay Flexibleo Be prepared to assist o Be prepared to modify the

agreemento Be prepared to pay sooner

than the normal billing cycle

o Be Open to Teacho Estimatingo Payrollo Billingo Submittalso Change orderso Schedulingo Etcetera

Page 11: Renee DuFour - Knutson Construction

Experience, Bonding, Insurance

o Lack of estimating experience

o Lack of bonding capacity

o Lack of proper insurance coverage and ability to pay

Page 12: Renee DuFour - Knutson Construction

Best Practice Suggestions

o Avoid Bondingo Develop scope of work

packages tailored to existing women and minority businesses

o Ensure Estimate Accuracyo Work with contractors

early on

o Extra Considerationso Consider modifying

insurance requirements for self employed business owners (WC can be negotiable)

o Consider financially assisting firms to cover additional insurance requirements they have not typically carried or had resources to cover in the past