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Good Faith Effort is not a new term in the construction industry, having been the underlying requirement or hurdle for contractors in their efforts to comply with EEO hiring goals and Disadvantaged Business Enterprise (DBE) subcontracting quotas. Historically, if a contractor was unable to meet the related contract goals, but could show they made such efforts to do so, it was considered acceptable. As the boom in the City of Detroit continues and the Michigan Department of Transportation begins to expand its program following the funding bill passed last year, project owner groups may no longer accept Good Faith Efforts as good enough.
An example of this is the Detroit Event Center, the future home of the Red Wings. The Detroit Event Center project team, along with several other City of Detroit projects, is now required to comply with Executive Order 2007-1. This order from the City of Detroit requires fifty-one percent (51%) utilization of bona-fide Detroit residents on construction projects and that thirty percent (30%) of the total dollar value of the contract be awarded to Detroit Headquartered Businesses and Detroit-Based Businesses. Contractors must meet targeted percentages or plan to pay fines, be removed from future bid lists, and more.
Complying with these rules can be daunting, but in our experience, the numbers are achievable with planning. Here are some key actions contractors can take to be successful:
While project requirements, such as local resident worker requirements and DBE supplier objectives, can seem overwhelming and intimidating, EctoHR has learned first-hand that planning ahead and giving 110% in compliance effort will pay huge dividends throughout the project. The numbers and goals are achievable, although it may take time and a great deal of effort to get there. The unexpected results likely include better production rates than previously expected and a more diversified workforce that may stick with your Company beyond a single project.
For help with your next compliance-heavy project, contact Erica Gruss or Colleen Burke at email@example.com or 810-534-0170.