City Crackdown on Contracting Abuses

Philadelphia Mayor Michael Nutter has signed a bill that will more strictly monitor Disadvantaged Businesses Enterprise (DBE) participation in construction projects. Currently, projects receiving City funding are required to commit a certain percentage of the work to DBEs. The City has long suspected people were sidestepping these regulations and recently uncovered at least one major fraud and has other cases under investigation.

Read more about the crackdown here: http://articles.philly.com/2012-03-30/news/31261436_1_minority-firms-city-contracts-contract-dollars

Personally we have seen increased scrutiny on several projects. Our approach and advice is to engage a 3rd party to promote and monitor DBE participation during the project. Circumventing the process will likely lead to fines or penalties from the City, not to mention damaging your reputation.