1815 Bryant Ave North, Minneapolis MN 55430, Phone: 612.251.4602

Market Analysis:

Diversity on Local Construction Projects

Pain Points concerningdiversity on local construction projects

Through research, surveys, and direct contacts, MASCAfound that there are many concerns/issues that arise related

to Diversity Construction Contractors (DCCs) participating on residential and commercial,public and private

sectorconstructionprojects. We refer to these concerns/issues as Pain Points.These Pain Points are different for the

DCCs, the General Contractor (GCs), andthe Owners.

MASCA,a for-profit entitywas created to address and provide market-based solutions to resolve thePain Points for

DCCs, GCs, and Owners. The following is a synopsis of the different Pain Points for each group.

• DCCs:

o Lack of basic business acumen

o Inability to consistently identify appropriate projects to bid

o Inability to produce timely, accurate, reasonable bids

o Difficulty obtaining sufficient affordable insurance and bonding

o Difficulty raising sufficient working capital

o Inability to field manage a largesizedconstruction project

o Inability to field manages multiple projects

o Inability to manage required project paperwork

o Difficulty obtaining required equipment.

• GCs:

o Inability to meet Owner’s participation requirements

o Difficulty satisfying Owner’s “Good Faith Effort” requirements

o Increased Project Cost:

� Ongoing effort to locate DCCs to participate on projects

� Considerably higher cost for work that has been allocated to subcontractors

� Project delays

o Increased Risk:

� DCC failure mid-project

� Bonding the work performed by DCCs

� Providing DCCs working capital

• Owners:

o Increased pressure from funders to meet participation goals

o The inability to provide development opportunities that are deemed to be fair, open and obtainable

o The inability to reduce the disparity in their minority spends

o Inability to get projects completed in a timely manner.

The goal is twofold: To formalize the DCCs into a cohesive, high-quality, high-performance consortium of

construction service providers that can successfully compete and gain work on construction projects, without

adversely affecting project outcomes. To help GCs and Owners meet participation goals.