Jobsite Culture

“Establishing and maintaining a positive job-site culture means that everyone gets to experience a workplace that is inclusive and respectful.  We know what a good jobsite culture feels like–it’s the job that everyone wants to be on because it looks and feels welcoming.  We also know that good culture leads to a safer and more productive job, one that provides higher value to our clients and allows each and every worker to perform their best work.

Everyone must actively care for each other and ensure that everyone feels both physically and psychologically safe.  Job Sites are our work homes, they are where we spend our days, and they are where we gather the emotions, attitudes, and behaviors that we bring home to our families.  We should expect to get a high level of respect and standard of care where we work.  We must create workplaces which are equitable and meet the needs of all employees, industry wide.  We need to ensure job sites are free of bias and harassment; where all are treated with respect; sites in which our professional opinions are heard and valued, and all have a seat at the table.  Additionally, our clients appreciate and have come to expect a diverse and respectful workplace.  This is not diversity on paper only, we need to foster collaborative and inclusive teams where everyone can do their best work and deliver for our clients.

Simply said:  When it comes to jobsite culture, it has to be practiced and lived daily.  EVERYONE has to be about it and not just talk about it.” 

Construction Inclusion Week–Day 4: Jobsite Culture

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I have been asked my thoughts as to the future of DEI programs that reach out to help minority and women-owned firms find success in our very challenging and competitive design and construction industry.  I watch with interest the developments from afar and I read every article that even briefly whispers a mention of diversity, but I must say, I have yet to form any great thoughts and certainly no thoughts that come close to providing answers or directions.  I guess I am in a wait and see mode but then it does seem the time is upon us, the wait is over, action is needed to survive.

I have seen comments by Mikail, Adolphus, Yaphett, and Shaun Carr and it is clear to me that all are not on the same page–at least as of yet.  I feel this is a result of the “page” not being clearly defined, the page to be on is still being defined by others.  I know all the players mentioned though and I know they share a passion for helping MWBE firms find success and would easily bet that they will not like the final page and action on their part is on the way.

I have long said that the MWBE program needs tweaking and updating.  I have never been a fan of percentages, especially the dividing up of the required percentages between various races.  I would much prefer working with and helping a certain number of firms, all firms qualified to perform the scope they agree to undertake.  If we could truly mentor and help guide five or six or 10 firms on every major project, what a treasure that would be for our industry.  And the idea of making a GC stick a minority or women-owned firm under a trade contractor and expecting that to be accepted and be successful long term was rather nearsighted or at the very least, not very well thought through.  

There is not a program in the business world that works unless there is buy-in from the top down and a serious amount of “want to” by everyone involved–including the MWBE contracting community, and unfortunately, complete acceptance and buy-in has never been a part of the current DEI program, public or private. I am talking about complete buy in from all parties.  Also, it seems to me there should be some sort of graduation or transition from being a minority-owned or women-owned firm to just being a known and respected and competitive trade contractor in your respective trade.  When are minority or women-owned firms successful and no longer in need of a percentage tagged to their name?  Or does that really ever happen in the very conservative St. Louis marketplace?  Does a MWBE certification still hold water and have significant meaning with Tarlton, Rhodey, BAM, KAI?  Should it mean something?

And really, does anyone feel that the program in place has been successful? 

The city requires developers of their major projects to contract with a healthy percentage of MWBE firms but then they provide no protection to these firms by way of requirements of the developers to pay these undercapitalized firms promptly.  Further, there is no mentoring requirement.  Many of the other private owners in our marketplace do the same.  Personally, I am a huge fan of everyone being treated the same as I think exceptions for certain firms tend to place MWBE firms in a different category, an unwanted category.  But asking a minority owned firm, with very little access (if any) to conventional working capital to withstand a 60 to 120 day pay cycle and still maintain current relationships with their unions, federal and state withholding taxes, material suppliers, and other business and personal matters is a recipe for disaster.  And guess what, we have had numerous disasters in the past fifteen years.

A few years back, I wrote a piece describing my idea of “best practices” in the DEI arena for owners, general contractors, trade contractors, and minority-owned firms.  Naturally, since I wrote the piece, I thought it contained the right formula for success.  Reading over that piece today, I would still support this path but also realize this sort of collaboration between all players will never happen.  Essentially my plan called for direct involvement from the owner and direct involvement of the GC’s, rather than flippantly passing all requirements down to the trade contractor.  When I say direct involvement, I mean the owners and GC’s will actually meet with each minority and women-owned firm working on their project.  Yes, sit at the same table with them, get to know them, welcome them to their project, exchange business cards, give them a path of communication that will lead to success.  Owners would clearly define the rules of engagement to their GC, and the GC would clearly define the rules of engagement to their trade contractors and to the MWBE participating firms–and those rules of engagement would be respected and followed.

The owner, GC and MWBE firms would clearly understand the scopes of work and the dollar amounts of contracts of all MWBE work, and there would be no more just writing down a name and a dollar amount without an agreed scope of work attached to it–a scope that has been worked out and agreed to by the MWBE subcontractor and the respective trade contractor up front, prior to bidding.  There will be a pre-award meeting that will be attended by all parties before contracts were finalized.  If a trade contractor says they will be working with Scales Plumbing for 25% of the work, then bring LaMarko to the table and let us all understand the detailed scope of plumbing work that Scales will be doing and the amount of dollars that will be printed in their contract.  This would be worked out in advance of bidding, not later after acceptance.  It is not all that complicated and yes, this can be done.  To do otherwise–which is the norm currently–is a disservice to all parties.

Further, all second tier and third-tier MWBE firms will be invited to the monthly or weekly job-site meeting table along with the primary trade contractor and they will be invited to participate in the discussions when appropriate.  If there are performance issues, change order issues, scope issues, management issues, manpower issues, let’s hear it from all parties and let’s resolve these issues together–now, not later.  And I know this next thought will not be easily accepted, but let’s help those MWBE firms that may need a little assistance.  Would it hurt us (owner, GC, trade contractor) that much to assist, teach, mentor, and guide the participating MWBE subs–if needed.  Maybe even help them financially?  Don’t we all gain from everyone finding success in a project and everyone learning from each other?  Isn’t this what our current program is supposed to be accomplishing?

And when the project is complete, let’s all sit down together and talk about how things went, what could each party have done better, what were the causes of the major jobsite issues, what went well for each party and why.  Let’s all learn from each project experience and set ourselves up for greater success on the next project.  Let us all follow the PEOPLE motto which is…” when PEOPLE gather and mix, fear and uncertainty turn into understanding and acceptance, ideas are born, challenges become opportunities, and success rises to the top.”

Currently, we employ minority and women-owned firms because we have to.  Period.  Take away the “have to” and it will not happen.  Certainly, there will be exceptions but let’s think about this for a minute.  Why would Bazan or Painting Solutions or Meyer Painting hire BTD, or Two Hills or D&L Painting or any minority owned painting firm to perform work that they easily, and more efficiently, can and do perform themselves routinely?  Why would Flooring Systems hire Carr Flooring to do a couple floors of a major building? 

There are many GCs in our marketplace that have made DEI standard practice in their awarding of subcontract work and in their material purchases.  I respect that and sincerely hope that practice continues.  The challenge of promoting DEI by the major GCs on the major commercial projects is finding the MWBE firms that meet their financial and performance and safety requirements.  For a lot of reasons, it is difficult to loosen the reins when it comes to meeting the qualifications of a general contractor.  They have obligations to their clients, and they have standards that must be met for them to be successful long term.  This is not a minority issue, this is good business practice.

As I type this blog today, my understanding is that the MWBE program is now officially off the table.  There are no requirements for city projects or any of the major private projects.  Done.  Over with.  The city says they will keep the rules intact as to apprentices, city workers, and maybe some other categories, but that will soon be off the table as well.  That is being saved for next week’s news.  MWBE firms no longer have a certificate that is valid or at least that has any meaning to any owner or GC in town.

How will this affect the MWBE contracting community in the future? I think we all know the answer to this question.  Let us all see what the next few weeks bring but this is not a slow-moving train, this movement to eliminate all DEI programs, public and private, is happening fast and furious.  The result will be chaotic for the MWBE contracting community and the end result will have a lasting impact on our society.

I love the “Jobsite Culture” quote (see quote above) as printed during Construction Inclusion Week a few years back.  I reread this quote often as I feel it has all the answers.  If owners, GC’s, trade contractors, MWBE firms all believe in this message and see that this sort of culture happens on all major job sites, all would be golden.  

Maybe it is time to print this quote on the front pages rather than the screaming headlines that DEI is dead and gone and no longer constitutional.  Let us all ponder the meaning of this quote and form some impactful and positive answers around it.

PEOPLE and WBEDC

Ron