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November 7, 2002

New center helps contractors compete

  • Contracting Development and Competitiveness Center opens its doors Dec. 1
  • By CHARLES ROLLAND and JAMES KELLY
    Urban League

    While the Pacific Northwest’s construction industry continues to experience record growth, small women- and minority-owned businesses are not.

    The city of Seattle had historically utilized remedial measures such as mandatory WMBE participation goals and set-asides to counterbalance the negative effects of structural impediments. The statewide passage of Initiative 200 in 1998 resulted in the elimination and prohibition of many of these measures.


    What the CDCC offers
    The Contracting Development and Competitiveness Center, run by the Urban League, will offer a wide array of services for women- and minority-owned construction firms. Here’s a sample:
    • Internet access to plans and bids

    • Monthly training workshops

    • Assistance with bid packaging

    • Assistance with joint venture partnering

    • One-on-one counseling and mentorship

    • Educational programs with certifications

    • Loan packaging and procurement

    • Governmental contract procurement

    • Networking assistance

    • Business consulting

    Having now operated in a “post I-200” environment for over two years, the city is now finding that the elimination of remedial measures has had a significant negative impact on the participation of WMBE construction firms.

    An analysis of construction spending performed in 2001 by Mayor Greg Nickel’s contracting task force showed that the city has seen a dramatic decrease in the number and participation of WMBE firms.

    In the two years before the passage of I-200, WMBE firms received 29.5 percent of construction contracting dollars reported in that time period. In the two years since the passage of I-200, WMBE firms received 21.8 percent of the construction contracting dollars reported, representing a 26 percent reduction compared to pre I-200 levels.

    Perhaps even more disturbing is the trend in certain subsegments of WMBE firms. For example, only 2.3 percent of Seattle’s public works contracts went to African American-owned firms before I-200. Since then, only 1.1 percent of the city’s public works contracts have been won by African American firms.

    After reviewing the task force’s findings, the mayor’s office and the Seattle City Council were both very concerned about the low participation of WMBE firms in city contracting, and were eager to find solutions to increase participation.

    One such solution was formulated by a broad coalition of public and private organizations that was brought together to find a way to address these concerns. The group proposed to create a new independent organization, the Contracting Development and Competitiveness Center (CDCC).

    Addressing unique issues

    The mission of CDCC is to address the unique issues faced by historically underutilized, small, minority- and women-owned businesses in the construction industry so that everyone will have an opportunity to participate in the building of Seattle.

    The agency will be dedicated to increasing the revenue, and improving the competitiveness of WMBE construction firms. The CDCC will assist contractors by offering programs and services that help them successfully respond to bids for public-sector and private-sector construction projects.

    “First, the goal of the center is to break down structural barriers that hold small minority- and women-owned businesses back,” said James Kelly, the president and chief executive of the Urban League of Metropolitan Seattle.

    “Secondly,” Kelly said, “the center will provide solid training and other tools to improve the capacity of these businesses to compete and succeed on their own merits.”

    Funding approved

    The city council approved $200,000 in funding for the center in August. The Urban League will operate the center, supported by user fees and grants.

    Other partners include local chapters of the Associated Builders and Contractors, Associated General Contractors and Turner Construction. Charles Rolland is the interim director.

    The center will be temporarily located at the Urban League’s headquarters when it opens its doors Dec. 1. Other possible sites are being explored.

    Karen Say, owner of the fuel systems firm Saybr Contractors, said she would use the center.

    “I started out as a receptionist 14 years ago and have worked in every possible position,” she said. “Even with my wealth of experience, my credibility is still too often challenged simply because I’m a woman.”

    This affects her ability to obtain jobs and access to capital. The CDCC will be poised to be her advocate.

    Jorge Quiroga, a general contractor with Armex Inc., says he hasn’t been able to get enough money from financial institutions to expand his business.

    “I’ve been in business for 15-plus years, am fairly well established, have a six-figure gross income and a line of credit. It’s just not enough to grow,” Quiroga said. “The CDCC intends to help assist those like myself who are in this is the type of business.”

    How it works

    The center will work with contractors to scope out opportunities, and build relationships with prime contractors and government contract managers.

    Professional assistance, technical assistance and specialized training will also be offered to business owners and operators, who must pay annual membership fees and agree to attend meetings and training seminars on a regular basis. Training offered by the center will include the Turner School of Construction Management training program, cosponsored by the Associated General Contractors of Washington.

    The CDCC will also provide underwriting, financial resources, credit analysis, networking opportunities, one-to-one counseling/mentoring, educational programs, individual needs assessments, and technical and resource assistance.

    In addition to the services available through the CDCC, the staff will work with WMBEs to identify market opportunities and assist with the development of formal relationships between major contractors, city, county, and state representatives.

    The center will also monitor participation and growth of historically underutilized, small, minority- and women-owned businesses, and contract opportunities and compliance.


    James Kelly is the president and chief executive of the Urban League of Metropolitan Seattle. Charles Rolland is a contractor and consultant, and the CDCC’s program development and planning director. For more information about the CDCC, call Rolland at (206) 461-3792.


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