Opportunity Report: A Word About “Equity”

Date Posted: June 27, 2022

Posted In: Discussion, Ideas,

by Ron Unterreiner, Founder, PEOPLE of Construction

Editor’s note: “Opportunity Report” is a regular feature of ConstructForSTL.org — a column by PEOPLE of Construction Founder Ron Unterreiner that we’re calling “Opportunity Report”.

Martin Luther King wrote, “The struggle for rights is, at bottom, a struggle for opportunities.” Dr. King noted that it does no good to say that someone can live wherever they want if they can’t afford to buy a house or that their children can go to any school if there’s no money for clothes or lunch.

The mission of the Construction Forum is “To facilitate the collaboration of all the stakeholders in the St. Louis Region’s built environment in creating inclusive robust employment and economic growth.” Ron Unterreiner will address all these issues in this and upcoming issues of “Opportunity Report”.

I love the fact that we have now somewhat officially inserted the word “equity” into our discussions of diversity and inclusion.

We started with diversity and years later decided that inclusion should be mentioned in the same breath. We have now accepted equity as a main player. Progress.

Equity is the concept of removing barriers so that all participants are standing on equal footing and have the same shot at success. We can invite diverse firms to our project, and we can work to make our projects and our workforce all inclusive but if we do not remove obvious barriers to success so that those diverse firms can compete using the same tools available to the majority firms, what are we accomplishing? The recent article published in the Forum of the HOK discussions on DEI highlighted the importance of this concept of equity.

The one huge, glaring barrier that confronts MBE and WBE firms on the major commercial projects in our marketplace is access to adequate working capital. Unfortunately, there is little to none conventional, market-rate, capital available to the minority contracting community. We—owners, GC’s, city, county, and all buyers of construction services — must accept this rather simple fact if we are to achieve progress in our work to promote a diverse, equitable and inclusive work site.

There was a time within our industry when cash flowed from the owner down to the lowest tier sub-performing work on a project in a timely manner. Rarely was a subcontractor, regardless of tier, not paid for their payment requests prior to preparing the next month’s payment application. That is a rarity in the current environment. Let us all keep talking and thinking and reacting in a positive manner to this most important barrier.

Sheila Johnson and her B.T.D. Construction is on the finishing phase of painting work on the Delmar Divine project and the MLS Stadium project—two very important projects for the St. Louis region. B.T.D worked with PM Leach Painting and All-American Painting on these two projects. I first met Sheila several years ago in my work with the Contractor Loan Fund and am getting to know her firm better through her relationship with RISE CDFI, which is providing financial support for their working capital needs. She and her brother Lee, run a very professional and respectable business and you should have them on your list for your painting needs.

Aztec Construction Specialties is another MBE firm that is enjoying success through their multiple projects with MSD and other high-visibility clients. Hector Maldonado is the owner and the driver of Aztec and has worked hard to make his excavation/sewer laying firm relevant in our industry. The Contractor Loan Fund fueled Hector’s success and RISE CDFI is continuing to support Aztec in their work.

Gaus Acoustics, a WBE-certified acoustics consultant and supplier, is wrapping up a major acoustics contract with Poettker Construction on the Central High School project in Champaign, IL. Friend Acoustics worked with Gaus to provide the installation. Gaus Acoustics also recently completed the acoustics supply and installation on the Pinckneyville Hospital project with Murray Company.

There is a lot of good work being performed by MBE and WBE firms in our marketplace and I look forward to reporting on their work in the weeks ahead. Thanks to the Forum for making this column possible and thanks to all for reading and taking notes. Please email me at PEOPLEofconstruction@gmail.com for news and recommended companies to acknowledge.