Developing and upgrading minority construction contractors: The Houston and Atlanta experiences

Glover, R W (1972) Developing and upgrading minority construction contractors: The Houston and Atlanta experiences. PhD thesis, University of Texas at Austin, USA.

Abstract

An empirical study of minority business enterprise in construction, this paper is based on interviews with 119 minority general and specialty contractors in Houston and Atlanta as well as 112 other individuals, including civil rights leaders, union administrators, government officials, and other knowledgeable persons. The study includes consideration of the characteristics of existing contractors and their firms, the aspirations of the contractors, analysis of the problems they face in upgrading their businesses, and an examination of alternative approaches to improving and expanding minority business enterprise in construction. The contractors surveyed operate small firms which are predominantly proprietorships and usually employ three or fewer workers. Seven out of 10 contractors in Atlanta and nine out of 10 in Houston are specialty contractors. Virtually all but a handful work primarily in the residential sector. Although minority contractors tend to have more formal education than their counterpart groups in the population, their current capabilities as contractors are limited due to their lack of business experience and training. Three-fourths of the contractors interviewed expressed a desire to expand their businesses. However, only a fourth of these are aiming at the market for the larger commercial construction projects. Problems the contractors face in upgrading their businesses vary according to the type of contracting firm, the age and size of the firm, the volume of work, and the size of projects undertaken. However, financial problems -- especially locating interim financing -- were of foremost concern to the contractors surveyed. Other problems of major concern to the contractors were inability to find and keep qualified workers, inability to obtain bonding, lack of management skills, debt collection, cheap competition, and (in Houston) scarcity of jobs. Three approaches to upgrading minority contractors are examined: (I) government assistance, (2) joint venturing, and (3) the minority contractors association. With respect to government assistance, it was found that although several government programs aimed specifically at assisting the minority contractor exist, these programs have resulted in more promise than fulfillment. Furthermore, minority contractors appear not to be well served by any government programs, including the employment service efforts, vocational education programs, and contract compliance endeavors such as the "Atlanta Plan." With regard to joint venturing, it was found that although this technique offers upgrading potential for minority contractors, it is a complicated matter and should only be undertaken with certain precautions. Finally, the minority contractors association can assist its member contractors by helping to bring them into contact with the mainstream construction industry, to educate and train them to better operate their businesses, and to focus community resources upon them. Recommendations are offered for public and private organizations wishing to assist the future development of minority firms in construction.

Item Type: Thesis (Doctoral)
Uncontrolled Keywords: competition; education; market; population; residential; skills; construction project; compliance; employment; financing; government; training; construction contractor; interview
Index terms: interview, compliance, upgrading, face, competition, construction project, population, program, financing, construction contractor, specialty contractor, commercial construction, employment, minority, empirical study, contract compliance, vocational education, construction industry
Subjects: industry analysis, sociology, professional education, market analysis, demography, contract management, health safety and environment, production management, software systems, research methods, management, economic analysis, professional practice, psychology, practitioner, construction type, strategic management, data collection methods
Topics: Construction Technology, Roles and Professions, Engineering Principles, Research Practice, Project Management, Health and Safety, Business Strategy, Contract Administration, Education, Organizational Design, Human Resources, Ethics, Digital Applications, Urban Studies
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here