Construction Reform Summary
On July 19, 2004 Lieutenant Governor Kerry Healey signed into law Construction Reform Law Chapter 193 of the Acts of 2004, the most significant public construction reform package in over twenty years. This law was the work product of the Commonwealth of Massachusetts Special Commission on Public Construction Reform. The Commission, which included architects, engineers, construction trades and legislators as members, was charged with investigating and making recommendations as to the adequacy and efficiency of the laws and regulations governing public construction projects. After meetings and public hearings, the Commission made recommendations, which were incorporated into the law in 2004.
Construction Reform Law Program
The Supplier Diversity Office (SDO) Construction Reform Law Program is not an awarding authority. It monitors minority business enterprise (MBE) and women business enterprise (WBE) compliance of vertical construction projects throughout the Commonwealth’s 351 municipalities. The definition of a vertical construction project is four walls and a roof. We are also responsible for granting pre-advertisement and pre-bid waivers of MBE and WBE goals. Additionally we help General Contractors conduct MBE and WBE outreach on public construction projects, maintain ongoing partnerships with 3 schools of construction management and are a readily available resource to help any Commonwealth agency looking for MBE and WBE contractors.
Construction Reform Law Key Points
- Construction Reform Law applies to vertical construction projects and not horizontal projects.
- Design or Construction Phase projects that exceed $100,000 have MBE and WBE participation goals.
- The Design Phase is a combined MBE and WBE goal of 17.9% which was achieved by adding the MBE 4.63% and WBE 13.23% reported from the DCAMM Disparity Study. A reasonable representation of both MBE and WBE firm participation is required.
- The Construction Phase is a combined MBE and WBE goal of 10.4% which was achieved by adding the MBE 3.43% and WBE 6.95% reported from the DCAMM Disparity Study. A reasonable representation of both MBE and WBE firm participation is required.
- Pre-Advertising requests for the adjustment or waiver of MBE and WBE participation goals are to be submitted to the SDO Construction Reform Program.
- Pre-Bid requests for the reduction or waiver of MBE and WBE participation goals must be submitted to the Awarding Authority. The decision will be finalized by the Director of SDO.