masca - market pain points - mn
TRANSCRIPT
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.