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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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Renee DuFour
Project Manager
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
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
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
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
Agency Enforcement Strategies
o Work with the Authority having jurisdictionoBe upfront and work closely on:
oDefinitionsoReporting methodsoFrequency of reportsoContent
oKeep the AHJ informed
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
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
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
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
Experience, Bonding, Insurance
o Lack of estimating experience
o Lack of bonding capacity
o Lack of proper insurance coverage and ability to pay
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