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Wicks Law Provisions Putting the Squeeze on Minority Contractors by Dave McCleary
Thu, Jul 24, 2008 NYS Assemblywoman Susan John, D-Rochester and New York State Labor Commissioner, M. Patricia Smith, Tuesday, met with local minority and women owned construction companies to discuss changes in the Wicks law and how their organizations will be affected.
The Wicks Law allowed small construction companies to compete for construction jobs by requiring municipalities to bid out projects of more than $50,000 to four separate contractors. But changes in the law passed in April by the state Legislature, raised the threshold for projects in the upstate New York area to $500,000 or more.
“Our research showed that 70% of construction companies in New York State will not be affected by these changes,” explained Commissioner Smith.
But, many of the contractors represented in Tuesday’s meeting are concerned that the changes could potentially put them out of business.
“The issue is that the vast majority of minority owned construction companies in upstate New York do not have the ability to bid on projects over $30,000 because they don’t have the bonding capability,” says Duane Cuyler.
“A contractor is not required to secure a bond if your bid is less than $30,000,” he explained.
Cuyler is owner of Union City Contractors and president of the NY Minority Contractors Association. He says it is important that minority construction companies get a fair chance to compete on municipal projects.
“These changes have a potential to put a lot of minority and women owned construction companies out of business because a lot of these businesses are surviving on the small amount of municipal business they are able to get from time to time,” Cuyler said.
Another change in the law requires a company to have an apprenticeship program in place for three years before being allowed to bid on a project financed at least in part by public funds. Additionally, a municipality can completely opt out of Wicks law provisions by entering into a ‘project labor agreement’.
Minority contractors say this provision all but requires contractors to hire a mostly union work-force in an industry where the vast majority of small minority owned construction firms are non union.
Cuyler says the city of Rochester need to work out a solution to help minority contractors get the bonding necessary so they can compete on these projects. He and the Minority Contractors Association plan to “continue the fight for equality in the local construction industry.”
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Your recent article “Wicks Law Provisions Putting the Squeeze on Minority Contractors” immediately brought to mind the classic children’s fairy tale, Chicken Little. Remember how Chicken Little thought the sky was falling and that disaster was just around the corner?
Chicken Little learned one important thing that we should all remember. Disaster does not always loom where we think it does. And, remember the character Foxy Woxy.
Wicks law legislation was enacted in 1921 nearly ninety-years ago. Ostensibly the legislation was enacted to protect “small construction contractors” and to weed out corruption and to reduce the cost of public construction by requiring separate prime contracts for at least four major components – plumbing, electrical, HVAC and general construction.
The past fifteen years of hot and furious debate spurred some reform in Wicks legislation. In April, Governor David Paterson signed into law a major reform in the Wick legislation that has sent sparks flying.
While there may be some disadvantages to minority and women contractors in the recent changes, they are hardly the ones that are being disseminated in the minority community by those fighting reform. Suddenly we are to believe that changes in the Wicks law will produce a chilling and negative impact on minority contractors.
What’s new?
The fact is small businesses owned and operated by minority and women account for less than 1% of all publicly awarded contracts. No one should be obligated to overlook the fact that failure to comply with the law regarding minority and women business utilization on most public funded projects is more common than not. The fact is that minority and women –owned construction firms are being driven out of business every day not because of an inability to secure bonding (though bonding is a major issue) but, because every thing other than good faith is practiced when it comes to selecting qualified minority subcontractors who are willing, able and ready to compete on a level playing field. Voices opposing changes in provisions of Wicks have been barely audible in supporting minority business participation.
There is much discussion regarding Project Labor Agreements and the negative impact that will result from Wicks reform, again on minority and women construction firms. These agreements can be negotiated in a manner that strengthens minority participation, if only minority participation was a serious concern. There is precedent – the local soccer stadium and the $100 million dollar Buffalo Life Science Center.
When it comes to the lessons taught in the Chicken Little story, remember that Foxy Woxy was being deceptive in his short-cut. Could it possibly be that Wicks legislation is not “our” fight? Remember the Kikuyu proverb “When elephants fight it is the grass that suffers”.
In the not-so- distant future are a number of enormous local and regional public construction projects. There is also ready, able and willing minority contractors ready to step up to the plate to perform on projects worth much more than the $30,000 asserted in your article.
Thirteen (13) certified minority construction firms participated in the construction of Paetec Soccer Stadium. The average contract size exceeded $95,000.
Even if the latest changes in Wicks were to be repealed it would not suddenly be Christmas in July for minority contractors.
To be sure, we have an agenda but it must be prioritized. Hear me when I say Wicks is no where near the top of the list.
Beverly J. Jackson
President/CEO
RMBDC, Inc.
Beverly J. Jackson
A federal disparity study is needed to allow an investigation of equality of funds given to disadvatage blacks and latinos on federally and state funded projects plus NYS DOL training seven african american high school males who came to the meeting on tuesday with their parents.
Duane Cuyler
The sparsity of minority contractors in the construction industry is something that came to my attention over 30 (thirty) years ago and remains as evident today as it was then. This sparseness is particulary evident in the asbestos field due to the prohibitive cost of bonding and equipment. Consequently, the would-be or potential minority contractor in asbestos is perpetually relegated to the status of a worker where he is frequently victimized by contractors who only allow them to work off the books. Thus in a field that is fraught with health hazards, they are deprived of health benefits. However, for an individual who is accustomed to making the minimum wage, the opportunity to take a 4 (four) or 5 (five) day course and then double his/her household income, this seems like a blessing. When it is in fact exploitation and victimization that puts them at greater risk and deprives the state and federal governments of needed tax dollars in a time of economic crisis.
Larry Bratton
Minority Contractors are needed for State and local Government Stimulus Contracts over the next two years. More than $58 Billions in Government Contracts will be Awarded.
CertifyYourBusiness.com provides assistance to Minority and Women Contractors and Companys by preparing your State or local Certifications in New York and throughout the USA.
We are willing to facilitate a Workshop in New York State to assist groups of minority or women businesses in getting your State and local Certifications. Contact governmentcontracts@yahoo.com or our websitw www.certifyyourbusiness.com
ARTHUR H JACKSON MBA
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