BACKGROUND
Why Minority Contracting?
Support of Minority Business Enterprises in construction greatly impacts our communities by injecting prosperity and pride of craftsmanship through good work, thereby reducing poverty, crime and unemployment, and allows at-risk communities to access mainstream economic life.
Furthermore, demographics indicate that the minority population and its spending power is the fastest growing sector in the Upper Midwest. For a more in-depth discussion on this topic, please read Dr. Melvin Gravely’s article “Is There Really a Business Case for Supplier Diversity” (PDF, 68 KB) from the March 2006 issue of The Entrepreneurial Thinker.
Certification for Minority Contractors
To understand the importance of Certification, you must understand the mechanism behind MBE participation goals. By law, goals are set based upon the availability of ‚“Ready and Able” Minority Contractors. Because historically non-minority entities exploited this benefit by posing as minority entities, certification became mandatory and the pool of “Ready and Able” contractors can only include Certified MBEs. Therefore, if you do not certify your business, the pool is smaller than it should be, and the Minority Participation goals will be set too low or even eliminated.
The certification process may take three to six months. You will need to decide which entity you wish to certify with. Then you will need to complete the forms and submit with your full financial statements. There may also be a fee for applying.
Please note that one of the benefits of NAMC membership is assistance in the certification process. Please e-mail certification@namc-um.org for further information.