DRAFT CREC EQUITY PROGRAM

Transcription

1 DRAFT CREC EQUITY PROGRAM CREC School Building Committee 3/10/2015

2 Revision History REVISION HISTORY REVISION# DATE OF RELEASE OWNER SUMMARY OF CHANGES 1.0 6/5/12 CREC SBC Initial Program 1.1 2/10/15 CREC SBC /12/13 CREC SBC Addition of veteran and job funnel goals /10/15 CREC SBC Changes to Construction Manager requirements and set-aside bond requirements Revised: 3/10/2015 2

3 Table of Contents INTRODUCTION... 4 CREC S VISION... 4 PROGRAM OVERVIEW... 4 PARTICIPATION GOALS Enterprise Goals Workforce Goals... 5 PROGRAM IMPLEMENTATION... 6 PARTICIPATION GOALS... 6 CONSTRUCTION MANAGER REQUIREMENTS... 6 THE PROGRAM ADMINISTRATOR... 7 BIDS AND AWARD... 8 CONTINUING EFFORTS... 9 PAYMENT PROCESS... 9 SET-ASIDES... 9 THE SET-ASIDE CONCEPT... 9 DESIGNATING THE SET-ASIDES IMPLEMENTING THE SET-ASIDES What Counts Towards the Enterprise Goals What Set-Aside Bidders need to Submit EQUITY MEASURES Bid Process Flexibility Program Administrator SUpport Retainage release / Closeout ADDITIONAL PROVISIONS APPENDIX A - DEFINITIONS APPENDIX B - GOOD FAITH EFFORTS Revised: 3/10/2015 3

4 INTRODUCTION CREC S VISION For over forty years, the ( CREC ) has been at the forefront of promoting diversity and providing opportunity for the benefit of students in the Capitol Region. CREC wishes to apply these same values to its construction projects. As part of the 2008 Settlement Agreement in Sheff v. O Neill, CREC is embarking on several major school construction projects. Connecticut s Commission of Human Rights and Opportunities ( CHRO ) and the State s Equal Employment Opportunity Commission ( EEO ) set goals for the participation of disadvantaged populations in many publicly funded construction projects to establish equal opportunity. CREC supports the goals and vision of CHRO and EEO. CREC has developed the CREC Equity Program to encourage disadvantaged populations to participate in CREC s projects in numbers that exceed CHRO and EEO s goals. CREC believes that doing so will benefit the State s economy, its businesses and its taxpayers. This document explains how the will work, and the specific roles and responsibilities of each project team member, subcontractors, suppliers, etc. involved. Certain terms used in this document are defined in Appendices A and B. In no event shall the be construed as conflicting with requirements of Project grants, including, without limitation, the provisions set forth in the Connecticut General Statutes Section PROGRAM OVERVIEW Subject to the general scope of work requirements of the Projects, Contractors, 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates shall implement the uniformly with Good Faith Efforts, in a manner consistent with applicable laws and regulations (including those governing procurement and funding for the Projects). The does not mandate S/M/W/DisBE participation and does not Set-aside subcontracts exclusively for S/M/W/DisBE bids. Nor does the eliminate bidders who fail to meet Enterprise Goals or Workforce Goals. Rather, the CREC Equity Program will be effectuated through the measures described in this document, including, without limitation, the following central elements: 1. Setting ambitious goals for participation of certain disadvantaged populations. These goals are the Enterprise Goals and the Workforce Goals. 2. Requiring all Contractors, 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates to use Good Faith Efforts to meet the Enterprise Goals and the Workforce Goals. 3. Encouraging all Contractors to designate certain 1 st Tier Subcontractors scope of work as Setasides for the implementation of the Equity Measures on those Set-asides. See Section 3.2 for explanation of the Set-asides and Section 3.4 for explanation of the Equity Measures. Revised: 3/10/2015 4

5 PARTICIPATION GOALS The consists of two broad goals: (i) encouraging the participation of S/M/W/DisBE 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates through the Good Faith Efforts of the Construction Manager, 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates to meet or exceed the levels specified in Section ( Enterprise Goals ); and (ii) encouraging the employment of a minority, female, veteran, and local workforce to the levels specified in Section ( Workforce Goals ). The Enterprise Goals and Workforce Goals will not be enforced by either CHRO or EEO ENTERPRISE GOALS Enterprise Goals will be accomplished through (i) the designation of Set-asides as described in Section 3; and (ii) the implementation of the Equity Measures for the Set-asides. The Enterprise Goals consist of the following: A. A goal of 25% of the hard construction value/direct trade costs per Project awarded to Small Business Enterprises and/or Disabled Business Enterprises; B. A goal of 10% of the hard construction value/direct trade costs per Project awarded to Minorityowned Business Enterprises; and C. A goal of 10% of the hard construction value/direct trade costs per Project awarded to Womanowned Business Enterprises. In contrast, CHRO has a goal of 25% of the hard construction value/direct trade costs per project awarded to SBE contracts and one quarter of such amount (6.25% of the hard construction value/direct trade costs per project awarded) for M/WBE contracts. Based upon a 1 st Tier Subcontractor bid/contract amount of $100 million, a comparison of the CREC Equity Program goals and CHRO requirements follows: (i) CHRO requires setting-aside $25 million (25% of the bid/contract amount) for SBEs and $6.25 million of such $25 million (6.25% of the bid/contract amount) for M/WBEs; and (ii) the sets a goal of (a) $25 million (25% of the bid/contract amount) for SBEs and/ DisBEs; (b) $10 million (10% of the bid/contract amount) for MBEs; and (c) $10 million (10% of the bid/contract amount) for WBEs WORKFORCE GOALS Workforce Goals will be accomplished by encouraging 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates (all subcontractors of every tier) to meet those goals. The Workforce Goals consist of the the following: A. A goal of 20% of the labor force (measured by man-hours) per subcontract utilizing minority and/or woman workers per Project; B. A goal of 20% of the labor force (measured by man-hours) per subcontract utilizing local resident workers (individuals living in the town and/or city where the Project is being constructed) per Project; Revised: 3/10/2015 5

6 C. A goal of 10% of the labor force (measured by man-hours) per subcontract utilizing US war veteran workers per Project.; and D. A goal of 50% of the entry level (or apprentice) labor force (measured by man-hours) per subcontract utilizing workers from the North Central Region Jobs Funnel Program from the Capital Workforce Partners ( Jobs Funnel ) per Project. To demonstrate: if a 1 st Tier Subcontractor has a labor force (permanent or contracted) which works 100 hours on the Project site, in order to meet the applicable goals, (i) 20 hours would need to be performed by minority (racial/ethnic) and/or woman; (ii) 20 hours would need to be performed by residents of the town and/or city where the Project is located; and (iii) 10 hours would need to be performed by a US war veteran. Further, as to such 100 hours worked by an entry level (or apprentice) labor force, 50 hours would need to be performed by workers from the Jobs Funnel in order to meet the applicable goal. The same goals apply to each of the 1 st Tier Subcontractor Subordinates. CREC EQUITY PROGRAM IMPLEMENTATION This Section describes the measures that will be implemented for all 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate subcontracts, including such subcontracts that are not Set-asides. Additional measures will be implemented on Set-aside1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate subcontracts. These additional measures are discussed in Section 3. PARTICIPATION GOALS The is a collaborative effort between all Project team members and contracted parties. The best results will only occur when such members and parties are working towards a common goal. As such, it is expected that (a) the Project owner, the Construction Manager and all 1 st Tier Subcontractors on Set-aside and non-set-aside subcontracts shall (i) use Good Faith Efforts to meet or exceed the Enterprise Goals and Workforce Goals of the, and (ii) comply with any and all CHRO and EEO goals and requirements regarding S/M/W/DisBE participation; and (b) all 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates shall use Good Faith Efforts to meet the Workforce Goals of the. CONSTRUCTION MANAGER REQUIREMENTS The Construction Manager selected for each Project, in their qualifications response to a Project s request for qualifications and proposals, is required to detail their (i) past participation and compliance with CHRO and EEO goals and requirements regarding S/M/W/DisBE participation; and (ii) approach for implementing the for the applicable Project. Upon completion of the design development phase of a Project and prior to bidding, the Construction Manager is required to prepare and submit a report (the Construction Manager s Procedures Report ) to the Project owner and Program Administrator setting forth the Construction Manager s procedure for implementation of the, which shall include, without limitation, the following: 1. Detailed approach to implementation of the ; 2. Bidding procedures, including forms that meet the requirements of the, based upon the procedures set forth in Section 2.4 hereof; Revised: 3/10/2015 6

7 3. Targeted bid packages for Set-aside work based upon the list of capacities developed by the Construction Manager based upon the process set forth in Section 3.2 hereof; and 4. Payment procedures based upon the process set forth in Section 2.6 hereof. The Program Administrator and Project owner will provide comment to the Construction Manager on the Construction Manager s Procedures Report. When the Project drawings and specifications are sufficiently complete and the Project trades are ready to be bid, prior to bidding the Construction Manager will hold a kick-off meeting with the Project Owner and Program Administrator to discuss the Project bidding process as it relates to the. As part of such kick-off meeting, the Construction Manager, Project owner and Program Administrator shall meet with administrators of the Capital Workforce Partners to discuss the Job Funnel program. THE PROGRAM ADMINISTRATOR Prior to bidding, CREC Construction Services will hire a Program Administrator that will help implement and manage the. The Program Administrator will oversee the CREC Equity Program, mentor 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate subcontractors and suppliers on Set-aside scopes (regardless of whether such subcontractor or supplier is a S/M/W/DisBE), and monitor the following phases/aspects that involve Set-aside subcontractors and suppliers including, but not limited to: pre-bid planning, bidding/award, construction activity (including safety and insurance aspects), payment request submissions, development and processing of change orders, and closeout. Furthermore, the Program Administrator shall be the sole representative managing the Construction Manager and its 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate Set-aside subcontractors relating to the guidelines, to be superseded or overruled only by the Director of CREC Construction Services, if such a situation would arise. The Program Administrator shall be the primary contact for the Construction Manager, with support from CREC s Construction Services Sr. Program Manager if needed, relating to the (e.g. reporting, meetings, etc.). Although the Program Administrator will work directly with such 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate subcontractors and suppliers, in no way shall such work supersede or override the contractual agreements and relationships of the Construction Manager, 1 st Tier Subcontractors and/or 1 st Tier Subcontractor Subordinates. It will also be the Program Administrator s responsibility to oversee and report on the Workforce Goals and Enterprise Goals with the assistance and cooperation of the Construction Manager, 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates. The Workforce Goals will be verified through certified payrolls, job site visits, and/or interviews. The Program Administrator will develop a tracking system and prepare and submit reports for the Projects to CREC Construction Services, on a monthly basis, at a minimum, or as requested by CREC. The Program Administrator will be the distributor of all reporting documentation to CREC Construction Services regarding the. Although the Program Administrator is substantially responsible for the successful execution of the, the Construction Manager shall be obligated to be an active participant and assist in both the implementation and execution of the. It is not the intent of the CREC Equity Program or the function of the Program Administrator to prevent, hinder, and/or minimize any Revised: 3/10/2015 7

8 responsibility of the Construction Manager or the 1 st Tier Subcontractors by fulfilling their contractual obligations or providing the Projects with industry best practices. Prior to bidding, the Program Administrator will familiarize itself with all the contract documents, including, but not limited to, the construction and bidding documents, scopes of work, etc. The Program Administrator will endeavor to make sure that all contract documents are in compliance and consistent with the on each of the Projects. The Program Administrator will also assist unregistered S/M/W/DisBE subcontractors by helping facilitate their registration in a town and/or city registry in order to bid on Projects. During the bid process for Set-asides, the Program Administrator shall work independently of CREC and the Construction Manager in the implementation of the and will not communicate with CREC or the Construction Manager on matters that may compromise the integrity of the Project bidding process. Following award of a Set-aside contract, the Program Administrator will act on behalf of, and report directly to, CREC Construction Services. BIDS AND AWARD During the bidding process, the Program Administrator will help coordinate and attend all pre-bid meetings with the Construction Manager and potential bidders on Set-asides, and will assist such potential bidders with bid documents and/or RFIs that may come up during the bidding process, within the confines of not promoting any unfair advantages and/or violation of any bidding procedures or ethical practices. The Program Administrator will deal with all bidders and/or subcontractors on a Setaside in as uniformly a manner as feasible and without regard to whether a bidder and/or subcontractor is a S/M/W/DisBE. Bidding for all 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate work will be bid at the same time. During the bidding process, each bidder on 1 st Tier Subcontractor work will solicit bids from 1 st Tier Subcontractor Subordinates, as it relates to their particular bid package and/or scope of work. At bid day, the 1 st Tier Subcontractor bidding to the Construction Manager will provide their total bid for the pertinent bid package and identify all the 1 st Tier Subcontractor Subordinate subcontractor(s) and/or supplier(s) they intend to use and their respective schedule of values, except as provided in Section as to Set-aside subcontracts. The Construction Manager, with the participation of the Program Administrator on Set-asides, will perform a detailed scope review (plans, specifications, estimates, takeoffs, and bid package/work scope review) with both the 1 st Tier Subcontractor and 1 st Tier Subcontract Subordinates (as applicable) to make sure that the lowest responsible qualified bidder is selected in accordance with applicable laws and regulations. Note: the Construction Manager may review two bids for the same trade package simultaneously if it is deemed to be in the best interest of the Project and CREC. During the award process, the Program Administrator will attend all scope review meetings involving Set-aside subcontractor(s) and supplier(s) and assist the Construction Manager in making sure that all bidders on Set-asides fully understand the bidding documents and have the appropriate scope of work as part of their bid. The scope review shall occur with the Construction Manager, the 1 st Tier Subcontractor, Revised: 3/10/2015 8

9 applicable 1 st Tier Subcontractor Subordinate subcontractors and suppliers, the Program Administrator, and CREC Construction Services Staff, respecting all pertinent relationships. Under no circumstance will the Program Administrator violate proper protocol. CONTINUING EFFORTS 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinates awarded a Project contract will be required to utilize and maintain Good Faith Efforts to employ S/M/W/DisBE as Project subcontractors and suppliers. Compliance will be monitored by the Construction Manager and the Program Administrator. Failure of 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates to maintain such Good Faith Efforts may be a reason for termination for cause. If investigation exposes fraudulent behavior on behalf of any party, the offending party may be barred from further participation in the and the Projects in accordance with applicable laws and regulations. Furthermore and as per industry standards: failures, refusals, lack of productivity, and/or breaches of the contract documents involving 1 st Tier Subcontractor Subordinates shall not limit and/or impede the scope of work required to be performed by the 1 st Tier Subcontractor under the contract documents. PAYMENT PROCESS All 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates (all subcontractors and suppliers of every tier) shall be paid no later than five (5) business days after the subcontractor of the immediately higher tier has received payment, unless there are justifiable and substantiated circumstances. Failure to do so shall render the applicable higher tier subcontractor in non-compliance and susceptible to further investigation. The payment process rationale is that S/M/W/DisBE businesses are of a size that typically struggle in sustaining debt for an extended period of time and do not have the ability to borrow a substantial amount. In the past, some small businesses have had to file for bankruptcy due to not being paid in a timely manner. The foregoing payment process will allow S/M/W/DisBEs to participate without sacrificing their cash flow. SET-ASIDE SUBCONTRACTS THE SET-ASIDE CONCEPT As described in Section 3.2, the Construction Manager will Set-aside a number of bid packages. When a bid package is Set-aside, it does not mean that only S/M/W/DisBEs are eligible to bid. Any enterprise, including enterprises that are not S/M/W/DisBEs, may bid on, and be awarded, a Set-aside bid package. Non-S/M/W/DisBE bidders on a Set-aside package will be treated in the same manner as S/M/W/DisBE bidders, and all bidding will conform to the requirements specified in applicable laws and regulations. The distinction between Set-aside and non-set-aside packages is that the Equity Measures will be implemented only on Set-aside packages. These Equity Measures will encourage S/M/W/DisBEs to bid in numbers, and at levels, adequate to meet the Enterprise Goals and the Workforce Goals. Revised: 3/10/2015 9

10 DESIGNATING THE SET-ASIDES Prior to preparation of bid packages and bidding, the Construction Managers will determine the number of Set-asides that will be necessary for the Project to meet the Enterprise Goals (the number of Set-asides will likely exceed the Enterprise Goals in an effort to assure that such goals are met). However, in order for certain scope of work to be a Set-aside, there must be a minimum of three (3) capable SBE, DisBE, MBE, and/or WBE (as applicable) 1 st Tier Subcontractor and 1 st Tier Subcontractor Subordinate subcontractors and/or suppliers available for such work. The Construction Manager will research all databases in the state (e.g. State of Connecticut, City of Hartford, City of New Haven, and any other legitimate registries) for SBEs, DisBEs, MBEs, and WBEs, and develop lists of capacities (how many subcontractors are available and what trade work can they do). Once that is established, the Construction Manager will determine which scopes of work may be Setasides and prepare a structure for bid packages. When the Project drawings and specifications are in sufficiently complete and the Project trades are ready to be bid, prior to bidding and as part of the Construction Manager s Procedures Report, the Construction Manager will provide this bid package structure to CREC and the Program Administrator for review and comment. Note: It is intended that all SBE, DisBE, MBE, and WBE subcontractors and suppliers participating in the be certified with the State of Connecticut in order to be eligible for award of work. Although the and its goals will be measured solely by CREC, independent from CHRO, the Construction Manager will still need to follow applicable CHRO procedures and guidelines. However, the Construction Manager will use the guidelines to endeavor to meet and/or exceed CHRO goals. IMPLEMENTING THE SET-ASIDES 1 st Tier Subcontractors on Set-asides should endeavor to meet the Enterprise Goals. This Section describes how Set-asides will be administered WHAT COUNTS TOWARDS THE ENTERPRISE GOALS S/M/W/DisBE participation of 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinates (all subcontractors and supplier of any Project tier) will be counted toward Enterprise Goals. If a subcontractor or supplier who is a certified SBE, DisBE, MBE, and/or W/BE is awarded a 1 st Tier Subcontractor or 1 st Tier Subcontractor Subordinate bid package (including a non-set-aside package), the dollar value of such awarded bid package will be applied to the overall tally of the Project s Enterprise Goals WHAT SET-ASIDE BIDDERS NEED TO SUBMIT Bidders on Set-aside subcontracts will submit bids in the same manner described in Section 2.4, except as provided in Section As described in Section 2.4, bidders on 1 st Tier Subcontractor Set-aside subcontracts will need to outline how they will meet or exceed the applicable CREC goals. Revised: 3/10/

11 EQUITY MEASURES Several measures will facilitate an equitable level of S/M/W/DisBE participation. The first of these measures is additional flexibility in the bid process. The second is the participation of the Program Administrator. The third is an expedited process of payment, retainage release and closeout BID PROCESS FLEXIBILITY As described in Section 2.4, 1 st Tier Subcontractor bidders must identify all their 1 st Tier Subcontract Subordinate subcontractor(s) and/or supplier(s), of all tiers, that they intend to use on a Project. While CREC prefers that this standard be adhered to for Set-aside 1 st Tier Subcontractor work, CREC will accept 1 st Tier Subcontractor bids for Set-aside work that identify only the schedules of values for the subcontractor performing work directly for the 1 st Tier Subcontractor and do not identify the work to be performed by 1 st Tier Subordinate Subcontractors not working directly for the 1 st Tier Subcontractor. If such a bid is accepted, the 1 st Tier Subcontractor must identify all 1 st Tier Subordinate Subcontractors within 5 days of being contacted by the Construction Manager for a bid scope review. The 1 st Tier Subcontractor must identify all such 1 st Tier Subcontractor Subordinate subcontractors and/or suppliers during the Construction Manager scope review regardless if the1 st Tier Subcontractor is the apparent lowbidder for the scope of work PROGRAM ADMINISTRATOR SUPPORT Prior to initiating any work on the Projects, the Program Administrator and, if necessary, the Construction Manager, will assist and provide mentoring to all subcontractors and suppliers involved in a Set-aside work to facilitate the understanding and requirements of all documentation requirements outlined by the 1 st Tier Subcontractor and the Construction Manager (e.g. payment applications, insurance requirements, lien waivers, change orders, claims, etc.). This mentoring will help individuals understand the process and make sure they can perform various tasks appropriately throughout the course of the Projects. The mentoring will never get to the point of the Program Administrator performing the obligations, responsibilities and/or scope of work of the Set-aside subcontractors or suppliers. During the construction and closeout process, the Program Administrator will mentor and assist all subcontractors and suppliers involved as a Set-aside with on-going documentation required by, as applicable, the 1 st Tier Subcontractor and/or the Construction Manager, including, but not limited to, payment applications, change orders, lien waivers, warranties, etc. The Program Administrator will meet, at minimum, on a monthly basis with the 1 st Tier Subcontractors on a Set-aside contracts and its 1 st Tier Subcontractor Subordinate to track progress of a Project(s), change orders, payment requisitions, and any other items that need attention in order to make sure that subcontractors and suppliers on Set-asides are being treated fairly, that progress is proceeding favorably, and that both the intent and spirit of the CREC Equity Program are being met. The Program Administrator will review in tandem with the Project architect and sign-off all monthly payment requisitions from the 1 st Tier Subcontractors with Set-aside contracts prior to the Construction Manager issuing as part of their final payment requisition submittal to CREC Construction Services RETAINAGE RELEASE / CLOSEOUT All 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinate subcontractors and suppliers on Setaside contracts, with the assistance and mentoring of the Program Administrator and Construction Revised: 3/10/

12 Manager, will go through a rigorous and expedited process of retainage release and closeout to help ensure that their contracts are closed out, at minimum, within one year of substantial completion of the Project. The Program Administrator will meet with the Construction Manager and 1 st Tier Subcontractors and 1 st Tier Subcontractor Subordinate subcontractors and suppliers on Set-aside contracts, at minimum, once a month in order to ensure diligent progress and expedite all deliverables required by contract. ADDITIONAL PROVISIONS A. The is a pilot program applicable to the Projects only. Part of the intent of the is to verify what the local Greater Hartford construction market and its environment is able to sustain in terms of subcontractor capacity and availability of labor work force. B. CREC reserves the right to alter, amend, suspend, and terminate, any portion and/or the entirety of the at any time, if it is deemed to serve the best interests of CREC and/or the Projects. C. CREC reserves the right to recommend termination of any subcontractor and/or supplier that is found to operate and conduct its business in a manner or fashion that is either fraudulent and/or inconsistent with the spirit and guidelines of CHRO and/or the. D. In the event that CREC terminates the, the balance of the Projects, and its related scope of work, from that point forward, will be executed solely in a manner that CHRO guidelines prescribe. E. Unless explicitly incorporated into an agreement by CREC, this document shall not be binding on CREC. When so incorporated, the other provisions of such agreement shall govern in the event of a conflict with this document. Revised: 3/10/

13 Appendix A - DEFINITIONS The following represents some of the terms that will be used in this document and their respective definitions and abbreviations: A. 1 st Tier Subcontractor Subcontractor working directly for the Construction Manager B. 1 st Tier Subcontractor Subordinates Subcontractors working under the 1 st Tier Subcontractor (e.g. 2 nd Tier Subcontractor, 3 rd Tier Subcontractor). C. Architect Entity providing architectural/engineering services under contract with the CSBC and under the supervision of the CREC Construction Services D. CHRO - Connecticut Commission of Human Rights and Opportunities E. Construction Manager Entity providing construction management services under contract with the CSBC and under the supervision of the CREC Construction Services F. CREC - G. CREC Construction Services Owner s designated representative H. The CREC Small/Minority/Woman-Based Enterprises and Minority/Woman Employment Program described in this document. I. CSBC - CREC School Building Committee J. Direct Trade Costs or Hard Construction Costs Consists of the scope of work awarded and the sum of all costs paid to 1 st tier subcontractors, and all 1 st tier subcontractor subordinates, including suppliers. K. DisBE - Disabled Business Enterprise L. EEO - Equal Employment Opportunity M. Endeavor- means that that an individual or entity should attempt to accomplish the goal in question, but will not be excluded from bidding or from award for failing to do so. N. Enterprise Goals as defined in Section O. Equity Measures the measures described in Section 3.4. P. Good Faith Effort - as defined in Appendix B Q. MBE - Minority-owned Business Enterprise R. Minority defined as racial and ethnic background S. M/WBE - collectively, Minority/Woman-Owned Business Enterprises T. Program Administrator Entity working on behalf of CREC, providing oversight and assistance in managing the Program U. Project One of the seven (7) permanent facilities which form part of the Projects V. Projects - The design and construction of seven (7) permanent facilities for the following Magnet School programs: Reggio Magnet School of the Arts, CREC Medical Professions and Teacher Preparation Academy, Greater Hartford Public Safety Academy, International Magnet School for Global Citizenship, CREC Academy of Aerospace, CREC Discovery Academy, and CREC Museum Academy W. SBE - Small Business Enterprise X. S/M/W/DisBE - collectively, Small Business/Minority-Owned/Woman-Owned/Disabled Business Enterprises Y. Set-aside Scope of work for which the Equity Measures will be implemented. Z. Supplier Entity providing construction goods and supplies to the 1 st Tier Subcontractor and/or 1 st Tier Subcontractor Subordinates AA. WBE - Woman-owned Business Enterprise BB. Workforce Goals as defined in Section 1.2 CC. Jobs Funnel North Central Region Jobs Funnel Program from the Capital Workforce Partners Revised: 3/10/

14 Appendix B - GOOD FAITH EFFORTS Good Faith Effort - considered to have been made when an agency, or other entity, has exhausted all reasonable means to comply with applicable goals. Good faith efforts do not include exhausting means to comply with applicable goals. An agency or vendor is deemed to have made a good faith effort when it has tried, and failed, to comply with an affirmative action goal through the discharge of one or more of the following to reach a targeted audience: For Workforce Goals* 1. Advertising in special interest publications and on special interest media. 2. Holding workshops, seminars and job fairs. 3. Contacting special interest organizations, groups and individuals. 4. Providing exams at times and places that are convenient to the target demographics (ex. weekends, evenings and/or decentralized locations). 5. Weighing the exams of targeted demographics to compensate for cultural deficiencies. 6. Mentoring candidates in testing and resume writing techniques. 7. Assigning points to veteran and disabled candidates. 8. Providing translators and interpreters for non-english speaking persons. 9. Contacting churches, unions, unemployment centers and community centers. For Enterprise Goals 1. Advertising in special interest publications and on special interest media. 2. Holding workshops, seminars and job fairs. 3. Contacting special interest organizations, groups and individuals. 4. Unbundling contracts. 5. Providing assistance with bonding and insurance. 6. Waiving bid package fees. 7. Return of retainer fees when MBE portion of work has been approved. 8. Mentoring special interest firms. 9. Providing access to reading room to study blueprints and other contract documents. 10. Assist firm in becoming certified with state. 11. Provide training programs. 12. Affirmative action outreach. *It is required that all subcontractors not being able to meet the established workforce goals to provide written proof that they have contacted the Jobs Funnel and that the Jobs Funnel has corresponded that they could not meet the demand. It is required that the subcontractor attempt hiring workforce from the Jobs Funnel on a monthly basis while on the job site actively performing work Revised: 3/10/