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a company an edge or superiority over its
competitors.
The first competitive advantage that certification
provides is that it drastically limits the
number of potential competitors for those
contracts that contain MBE/WBE participation
requirements. Because these public
and private sector opportunities can only
be awarded to certified businesses, companies
with non-diverse owners or companies
whose annual sales preclude eligibility for
certification, are not able to access these
contracts. Rather than competing with every
company in the Chicagoland region that provides
the same goods/services, you are now
only competing against those companies
that are also certified.
The second competitive edge is referred to as
differentiation – the added benefit or value
(beyond the good or service that your company
supplies) that you can provide. In highly
competitive industries such as construction,
certification status can be the deciding factor
in situations where two otherwise similarly
situated companies are being considered for
a contract.
Never forget that the benefits of certification
are not one-sided. Your certification provides
your partners the mechanism by which they
fulfill their own supplier diversity obligations.
1) The prime/general contractor on a multi-faceted
construction project that must meet
MBE/WBE subcontracting goals.
2) The corporate purchasing officer seeking
to meet his/her company’s increasing commitment
to a diverse supplier base.
3) Large, established companies entering
into Joint Venture agreements with certified
firms.
4) Private sector companies utilizing certified
firms in order to be eligible for substantial
bid incentives on public sector contracts.
These are tangible and valuable benefits
that non-certified firms cannot offer.
Having established the potential benefits of
certification, it is also important for business
owners to understand that becoming certified
is no guarantee of future contracts. Cer-
tification should be viewed like any other investment
that a business owner makes in an
effort to drive growth. Investing in a website
to market your products to a wider audience,
or updating your equipment to increase productivity
– these are arguably sound business
decisions, but there is no guarantee that they
will be profitable. Certification is just one aspect
of what should be a comprehensive effort
at marketing your company.
ELIGIBILITY REQUIREMENTS
Ideally you’re now convinced that you should
pursue certification, but are you actually eligible?
If you can answer affirmatively to the
following questions, you are a candidate for
certification:
1. You are a minority, woman or otherwise
socially/economically disadvantaged
and at least 51% owner of the company
seeking certification
2. You are the full time, day to day manager
of the company
3. You have the knowledge and proven
experience to operate a business in the
type of work you are seeking certification
4. Your company does not exceed the size
limitations imposed by the certifying
agency in the type of work in which you
are seeking certification
Typically the certification process will require
you to submit corporate documents (articles
of incorporation, by laws, stock certificates),
financial documents (tax returns, corporate
financials, corporate bank statements), and
demonstrate that the owner seeking certification
exercises independent control over
the management of the company. This process
will usually take between 60-90 days
after a complete application has been submitted.
Horizon Consulting is a participant in the
2016 Construction Industry Conference.
Please visit our exhibitor table or attend
the “Ask the Expert” session on Certification
where I will address any additional questions
you may have regarding the MBE/WBE/DBE
certification process.
About the Author:
Ayenew Biru is the founder and President
of Horizon Consulting, a company
that provides comprehensive
certification assistance, from initial
certification, recertifications, expansion
of commodity codes, annual no
change reporting requirements to appeals
of denials. Ayenew has assisted
clients nationwide with MBE/WBE/
DBE/ACDBE, Veteran/Disabled Owned,
HubZone and SBA 8(a) certifications.
Horizon also provides various business
services, including business plan
development, corporate formation,
licensing, website design and MBE/
WBE/DBE compliance.
Ayenew previously served as a Certification/Compliance
Officer with the
City of Chicago Dept. of Procurement
Services where he was responsible
for reviewing certification applications,
representing the City at various
vendor outreach events and was instrumental
in developing policies designed
to streamline the certification
process.
Ayenew can be reached at ayenew@
horizonmwdbe.com or 312-888-1063.
IS YOUR FIRM LOOKING FOR CUSTOMERS FOR YOUR CONSTRUCTION
MATERIALS, VEHICLES, INSURANCE OR SOFTWARE BUSINESS?
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(mobile, tablet or online) and in print.
You can get all of the details and more at www.BuildingEntrepreneur.com.
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