ForConstructionPros.com

Terri E. McNally

ATTENTION: All contractors doing business with federal, state, county or city government - the following information could be the differentiating factor in winning future contracts. And if you are doing business with the Fortune 1000, the information provided will help you unequivocally with your next RFP.

If you happen to be an equipment dealer wanting to add value to your customers, and you can't drop your price any further, you should also read closely.

Federal, state, county and city government, as well as many corporations, have mandated diversity initiatives on their construction projects. This means they are actively trying to utilize a supplier base that incorporates women business enterprises (WBE) and minority business enterprises (MBE).

Supplier diversity is a corporate or government initiative to include all suppliers - large or small, and owned by women, disabled veterans, minorities and other protected classes. Corporations understand that social responsibility is increasingly important for sustainable business. For example, minority-owned businesses generate $500 million in revenues, and women-owned businesses generate $3.1 trillion in revenues. Supplier diversity programs are an economic necessity.

Government entities actually mandate a "diversity spend" in their contracts, requiring up to 20% of all spending be through M/WBE suppliers.