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‘Cash Is King’
One of the greatest challenges faced by female and minority
CLIMBING THE LADDER
business owners is the process of acquiring credit and capital for In a recent interview with
their ventures – something that businesses across the board now Construction Today, James
face, but one that has always been an obstacle for such firms. Frisco, president of the
Because these companies tend to be smaller operations they National Association of
have lower start-up costs. Rather than rely on a sometimes-unat- Minority Contractors Upper
tainable bank loan, smaller businesses could rely on credit cards Midwest division, talk about
for funding. some of the obstacles minor-
The best advice Rizzo can give minority contractors is to ity contractors face and how
keep a positive balance sheet and never take on a job just to they can better prepare
generate cash flow. “You want to be competitive, so you need themselves for success.
to make sure you have money to cover your expenses on the Construction Today: What
job,” he notes. are the challenges your tions such as the National
“Cash is king, so any way we can encourage bank relationships, members are facing in the Association of Minority Con-
we do so,” he notes. “Bonds are getting harder and harder to come current economic climate? tractors (NAMC), and the
by. We’ve gone into the bonding business ourselves because we’ve James Frisco: Being able Association of Woman
basically been forced to do so.” to retain quality employees Contractors (AWC).
Rizzo recommends minority contractors make the best busi- when layoffs are imminent CT: How can the industry
ness decisions based on their goals and business model. “You and maintaining positive develop a more diverse work
want to make sound, profitable decisions and that is why you relationships with bankers force in the industry?
are in business,” he says. “Don’t take a job for cash flow, but when credit lines are being JF: Large and small con-
rather wait for the right opportunity and keep a positive bal- decreased and/or withdrawn. tractors must reach out to
ance sheet in the interim.” CT: What are the barriers- community college and
to-entry that minorities face vocational program gradu-
Integration in Action in the bid approval process? ates to hire more minority
Perini isn’t the only success story. Janesville, Wis.-based J.P. Cullen & JF: Bonding is always a and women in the con-
Sons proved its commitment to diversity when it completed the barrier for small and minori- struction trade.
three-year restoration to Milwaukee’s City Hall in December 2008. ty firms. When opportunities Also, federal, state, coun-
“The whole reason for the RPP/EBE program is to give individ- decrease, there is a natural ty and city contracts must
uals who have not had opportunities to gain employment [in tendency to “take care of demand inclusion and partic-
construction] that opportunity,” says Larry Rocole, vice president your own.” General contrac- ipation by women and minor-
of J.P. Cullen’s Milwaukee division. “If you’re going to get tors support their subcon- ity contractors.
involved in something like this, you don’t do it to create num- tractors, with whom they CT: How can general
bers; you’re in it to create jobs and careers.” usually have longstanding contractors better inte-
Working with BIG STEP – the Building Industry Group Skilled relationships. This creates an grate minority contractors?
Trades Employment Program – J.P. Cullen was able to recruit a additional barrier for minori- JF: Many projects require a
diverse subcontractor work force for the restoration. BIG STEP was ties that may not have history good faith effort by contrac-
launched in 1976 as a joint effort between the Milwaukee Building with the general contractor. tors and developers to find
& Construction Trades Council and Milwaukee Public Schools to CT: How can minority con- and integrate minority con-
help attract more minorities and younger workers to the trades. tractors better prepare tractors into their projects.
Many referrals are based on word of mouth or through community themselves for successful- The owners of the proj-
groups such as church organizations. ly bidding a project? ects must demand compli-
J. P. Cullen sees diversity performance as something that is in JF: By working hard to ance and penalize non-
everyone’s best interest. “In order for the Milwaukee metro area to build a strong portfolio of compliance.The NAMC and
be successful, we need to have a successful inner city,” Rocole asserts. past performance. Additional AWC can provide a com-
“It’s that kind of attitude which makes a restoration project like the training is available through plete list of qualified con-
Milwaukee City Hall an opportunity for personal and professional membership in organiza- tractors.
success in so many people’s lives.” ■

FEBRUARY 2009 ■ WWW.CONSTRUCTION-TODAY.COM ■ 11