![]() ![]() It has a pool of money that can be used as collateral to help small businesses obtain bonds that they wouldn’t qualify for on their own. That’s where the regional contractor development program comes in. “Bonding companies are looking for a contractor to demonstrate their capacity for performing public construction work,” she said, but small and minority-owned contractors can’t show their public-construction chops because they can’t get bonded. Merriwether said it’s a Catch-22 for companies trying to break into the field. But the companies that sell bonds may be reluctant to serve a small business with considerably smaller revenue and no experience with these sorts of contracts. (They may also require payment bonds to ensure that the contractor pays the people it hires to do the work.) In the case of the federal government, the performance bond has to be as large as the original contract amount - in other words, if you’re hired for a $30-million bridge repair, you need to obtain a $30-million performance bond.īig companies that the federal government hires as prime contractors typically have no trouble obtaining those bonds. Similarly, governments that put infrastructure projects out for bid require contractors to obtain performance bonds to help guarantee that the work will be completed. That’s why California requires every licensed contractor to carry a $25,000 surety bond that can be tapped if the contractor doesn’t complete the work. Here are some of the barriers that small businesses face to competing for government contracts, as well as the solutions offered by the regional contractor development program.Ĭalifornia To do business with L.A., city contractors now must disclose ties with the NRAĪnyone who hires a contractor risks having that person quit before the job is done, leaving an expensive mess. ![]() That encompasses a broad variety of firms, including architects, engineers, artists, sign makers, electricians, plumbers, landscapers, job-site clean-up companies and heating and air conditioning installers. The regional contractor development program works with small businesses that aren’t disadvantaged or minority owned as well as those that are its target is businesses capable of fulfilling construction contracts of up to $15 million, Merriwether said. But Metro and other public agencies have “a very rigorous certification process to make sure the firms that receive any kind of benefits of the meet the requirements,” she said. ![]() ![]() Given how much money is being spent on public works, Merriwether said, “you will always find examples of some businesses trying to take advantage” of the system. In one example of the latter, an investigation by The Times in 2019 found that $300 million worth of federal contracts intended for minority-owned businesses went to business owners with unsubstantiated claims of Native American heritage. Getting certified as a small or disadvantaged businessĬritics of government preferences for women- and minority-owned businesses assert that set-asides raise costs and invite fraud, as white-owned and well-established businesses look for ways to win contracts under false pretenses.Enrolling in the regional contractor development program.Regional contractor development program training videos.Online resources for becoming a government contractor ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |