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A Place At The Table
The New Haven Regional Contractors Alliance helps small and minority-owned construction firms get
bigger - and even better.
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Business New Haven
4/16/2001
By: Anne-Marie Brungard
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It's an age-old conflict: the haves vs. the have-nots. David vs. Goliath. The Big Boys vs. mom-and-pop.
The New Haven construction scene is no different. The Fuscos, Giordanos and the like have dominated the contracting market while the small, women-owned and minority firms struggle to survive, let alone keep up. And just to make the issue more challenging, set-aside programs require and encourage more participation from minority sub-contractors. And one shudders at the thought of unions and prevailing wages.
There are billions of dollars in construction-related contracts on the table, several effective and capable general contractors and some disenchanted small firms who rarely can get a seat at the table. But consider that…maybe they need each other. So how can it work so that everyone goes home a winner with lucrative contracts and money in their pockets? Enter the New Haven Regional Contractors Alliance.
Sometimes when you look bad you are forced to do better.
Several years ago New Haven's Mayor John DeStefano assigned a task force to address the issues of the previously disastrous set-aside program and how minority issues could be addressed more effectively. Several recommendations were made including commissioning a disparity study, re-establishing the set-aside preferences, and developing a regional organization to find opportunities and provide technical assistance for small and minority-owned contractors.
The disparity study, completed in 1998, seemed to echo the concerns of local small contractors and area watchdogs. A. Walter Esdaile, the city's director of small business initiatives and a director of the alliance, notes that “In certain categories, [such as] under $250,000 in contract amount, African-American, Hispanic and women-owned firms were underutilized in approval of prime contracts.” He further pointed out that a similar disparity was evident among African-American and women-owned contractors in sub-contracting areas.
No one argues that the numbers looked pretty bad, and the awarded contracts spoke clearly for themselves. “Minority contractors were being omitted - whether planned, designed or just not in the mix,” says Brack Poitier, owner of the Contracting Group and an alliance board member.
In 1999 the New Haven Regional Contractors Alliance was formed; it officially opened for business in 2000. Its mission is to assist small, minority- and female-owned businesses improve their ability to compete for construction and construction-related contracts, as well as provide entrée to general contractors and badly needed technical assistance.
Partnerships Equal Progress
With a board roster that reads like a who's who of New Haven, the city teamed with Yale, the Greater New Haven Business & Professional Association, the Board of Education's School Building Committee, the Association of General Contractors and others to breathe life into the alliance. There are two similar entities in the Northeast, and the alliance collaborative partners worked closely with a group in New York to complete the project.
But this isn't the only partnership worth mention. The alliance works with several general contractors and developers to assist them in finding qualified sub-contractors. This is no small task. Some of the available contractors struggle daily with lack of adequate financing and bonding; others have labor or management constraints.
“Initially it looks as though [the alliance] is competitive,” says Esdaile. But there is a strong desire for a more even playing field. “There are some [contractors] who want to work with minority firms but don't know where to find them,” Esdaile adds. So the alliance provides the linkage and critical access. And, as Poitier puts it, “We stimulate the consciousness of the owners and contractors.”
The most important partnership is that between the alliance and its membership. “It's a process,” acknowledges Esdaile. The alliance must first identify small, minority- and women-owned contractors, work to assess their skill levels, needs and capabilities, and then provide the assistance needed to help them compete.
There is a hesitancy on the part of some minority contractors to work with the alliance. It appears that some have adopted a wait-and-see attitude, while others approach the group when an urgent need arises. Whatever the reasons, the alliance is finding new ways to ferret out the contractors who need them most.
Muscle + Membership = More Money
Gregory Haskins was named director of the alliance in January. Armed with more than 20 years of management experience including a long stint as executive director of the Meriden Community Action Agency. Armed with a large Rolodex, Haskins boasts an impressive background that includes developing a community-based economic development corporation. That corporation engaged in construction-related contracts throughout New England and took on several contracts in the $300,000 to $400,000 range, including lead-abatement and housing refurbishment. As the new muscle for the alliance, Haskins says, “We will do whatever it takes to make [minority] business profitable and successful.
Haskins responded quickly to a contractor who came through his doors with a crisis. He had secured a contract - which would be good news for most. However, bearing in mind that he had to purchase supplies for the job, pay his workers and wait - who knows how long? - to be paid, and now he was anticipating a serious cash flow problem. Haskins assessed the situation, made some phone calls and the contractor left the office smiling with a confirmed appointment with a bridge-financing lender.
For now a one-man team who shares an office with Empower New Haven, it will be Haskins' role to find the contractors and build the membership. Building the membership also means making sure that the small and minority contractors are really equipped to hold their own with the Big Boys and Girls.
With just over a year's experience under its belt, what has the alliance actually achieved?
- It recently sponsored a third open house attended by more than 60 contractors. Representatives from the Board of Ed, Yale and the Amistad Street Project were on hand to discuss contracting opportunities.
- Two workshops addressed estimating and project-management issues. Fusco representatives provided some instruction and mentor services.
- A construction fair is in planning that would bring equipment manufacturers, construction attorneys, payroll and bonding companies, officials of the state's Department of Administrative Services (DAS), lead-abatement specialists, general contractors and other construction-related entities under one roof. The fair will also include workshops and speakers on such issues as prevailing wages.
- Several contractors have been assisted in completing the registration process with DAS' Business Connections set-aside program. “The integrity of the set-aside program has been raised to a new level, and we are excited to work with [the alliance] in supporting contractors with vendors opportunities,” says DAS' Carlos Velez. This provides access to immediate notification of state and city contract opportunities through online services.
- The alliance has facilitated the union of some larger general contractors with small and minority contractors that have spawned continuing relationships.
Although the alliance is still in its relative infancy, it appears to be growing up quickly, and taking large steps to right some obvious wrongs. With strong support from the city and other community entities - even including some general contractors - Haskins says he and the alliance will continue to work to get small, minority- and -female-owned contractors “a greater share of the contracts.” And a place at the table.
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