Capital Projects as Engines of Equity

At Gilbane Building Company, we see each building project as a vehicle to advance economic inclusion and growth for underserved communities, including the engagement of businesses owned by women and people of color. So much so, in 2021, Gilbane made a bold commitment to award $4 billion to MWBEs over the next five years. Our chance to foster economic opportunity and job growth in diverse communities extends as well to the sharing of best practices and lessons learned. To that end, Gilbane hosted a fall convening of over 200 leaders across real estate, higher education, private sector corporations, nonprofits, cultural institutions, City and State public officials, diverse-owned businesses, designers and engineers, and more at a special event titled “Capital Projects as Engines of Equity.”

Setting the stage for this important conversation, New York City Deputy Mayor for Economic and Workforce Development Maria Torres-Springer presented remarks and a Mayoral proclamation to Gilbane to celebrate Construction Inclusion Week in New York City. Brennan Gilbane Koch, Director, welcomed and opened our program. Alongside the energy and connection sparked at the reception, Governor Kathy Hochul’s Chief Diversity Officer Julissa Gutierrez moderated an insightful conversation. The panel included Raquel E Diaz of Gilbane Building Company, Tanya Pope of Columbia University, Robert Horsford of Apex Building Group, Angela Pinsky of Google, and Iris Weinshall of The New York Public Library. Gutierrez guided the robust panel discussion, emphasizing New York’s record-setting utilization of MWBEs on State contacts.

Here are our six takeaways:

1. Go beyond “best efforts” and add required MWBE utilization rates to RFPs — Project partners will follow the client’s lead. Determine a reasonable and ambitious MWBE utilization target and make it a formal requirement. The industry knows how to source these partnerships and sponsoring project owners should set the expectation from the start!
2. Debunk the myth that MWBEs are scarce; break up bid packages and assemble diverse bidders list early on — With planning and strategy, and a mindset embracing one of mentorship and engagement, owners, builders and designers can map out scopes of work that allow emerging and diverse business to participate and grow. All of this must be done at the earliest stages to allow for the time to source and prepare these new partnerships.
3. Include local neighborhood residents and businesses at all stages — Capital projects impact the livability and sustainability of a community. Foster that investment and connection at each step of the planning, design and construction and the results will undoubtedly enhance the value and harmony of the result. Seek local businesses for everything from catering and cleaning to supplies and more. Take pains to ensure the accessibility and flow of the project contributes to the needs of the surrounding community.
4. Establish formal partnerships to build MWBE capacity and opportunities for growth — Consider MWBEs for joint venture partnerships or teaming MWBEs up for a bigger stake in the project outcomes and a chance for mentorship. These collaborations allow for MWBEs to then compete for larger assignments in the future and fuels growth and sustainability.
5. Reduce administrative burdens for capacity-strapped small and emerging businesses — Common administrative requirements that seem insignificant to a larger company can often overwhelm a smaller or emerging business. Consider eliminating unnecessary steps or offering more step-by-step guidance to alleviate those burdens.
6. Recognize the disparity within the disparity — Take special efforts to include woefully underrepresented black and Hispanic-owned businesses. For example, set specific utilization targets for minority-owned businesses and plan focused engagement to reach those partners.