NYCEDC Releases Update on ConstructNYC
NYCEDC has awarded nearly $18M in contracts since the program launched in 2016
Program helps catalyze new opportunities for M/WDBE contractors
New York, NY – New York City Economic Development Corporation (NYCEDC) today announced progress on ConstructNYC, a program designed to catalyze prequalification and development of small to medium-sized, women-owned and disadvantaged businesses enterprise (M/WDBE) contractors. Since the program’s inception in 2016, NYCEDC has prequalified 64 M/WDBE firms and has awarded nearly $18 million in contracts to work on projects such as demolition work at the Made in NY Campus at Bush Terminal and interior restoration at the St. George Theater.
ConstructNYC’s comprehensive program offers training and support to prequalified M/WDBE firms and access to bid on NYCEDC construction-related contracts. The training, provided by the Business Outreach Center Network, consists of business development courses covering an array of topics including financial and office management, legal contract administration, vendor resources, labor rates, bidding and estimating, insurance, bonding, contract management, and payment requisitions. A final assessment is given to participants at the end of the coursework to prequalify their businesses. Firms enrolled in the program saw a 32% increase in their number of projects and a 24% increase in revenue after entering ConstructNYC, compared to a 13% increase in the year before joining.
ConstructNYC is now accepting applicants until March 15 for its eighth cohort. For more information, interested participants can apply here.
“The growth and success of the ConstructNYC program is part of our greater effort to level the playing field for M/WDBE contractors,” said NYCEDC President and CEO James Patchett. “We are thrilled to see the number of contractors who have grown their businesses as a result of our program. We look forward to welcoming and training the next cohort of talented entrepreneurs.”
“The ConstructNYC program is an exemplary program that is part of the broader effort to meet the entrepreneurial needs and talents of M/WDBE firms,” said Jonnel Doris, Senior Advisor and Director of the Mayor’s Office of M/WBEs. “Ensuring access to contracting opportunities is what makes this program game-changing for the diverse and skilled talent pool of entrepreneurs in NYC's M/WBE Program.”
“This ConstructNYC success results from a sustained effort to dismantle barriers to MWDBE firms’ participation in contracting,” said NYC Council Member and Chair of the Council’s Task Force on MWBEs Robert E. Cornegy, Jr. “Congratulations to the New York City Economic Development Corporation, the Business Outreach Center Network, and all the firms that have won more than $17 million in contracts. I believe we must celebrate ConstructNYC’s successes and redouble our efforts towards contracting equity. Nurturing economic inclusion and broad-based economic development benefits all New Yorkers.”
“For the past two years in ConstructNYC, we have worked closely with NYCEDC, BOC and the Construction Managers in order to successfully complete projects that have improved the beauty of our city,” said Joanna Karageorgiou, President, Earth Construction. “Through ConstructNYC, NYCEDC has provided tremendous assistance to our employees and management staff, guiding them from the beginning until the end of each project and assuring the ample flow of information and advice at each stage.”
“The ConstructNYC program has been a critical component of our growth and has allowed us to comfortably increase headcount and tackle large commercial improvement projects,” said Leo Arias, Vice President, Abba Construction. “NYCEDC was very attentive and responsive to our needs as a small business. The CM we have worked with has been a great partner and has mentored us throughout our engagements. BOC has provided the capital needed to finance the larger projects, while simultaneously guiding us through the financial intricacies of managing large contracts. Overall, the Construct NYC program has been very enriching and has positioned us for greater future success.”
Small to medium-sized M/WDBE contractors often face significant barriers that prevent them from winning City contracts, such as high insurance requirements, limited access to networks and information, and a lack of access to capital at affordable rates. Through the program, prequalified firms were able to bid and work on NYCEDC projects including the repair work at Pier 42 and renovation of commercial and industrial space at the Brooklyn Army Terminal.
Contractors looking to participate in ConstructNYC must have been in business for at least two years and must have made under $3 million in revenue over the last three years.
Firms must also have one of the following in order to enroll in the program:
- Proper MBE or WBE certification with the Department of Small Business Services or Empire State Development Corporation
- DBE certification with the U.S. Department of Transportation
- Certification as a veteran-owned business
Prequalified contractors will be eligible to bid on projects up to $1 million, comprising of work including brick and façade projects, demolition, electrical installation, general construction, HVAC & plumbing, and landscaping.
New York City Economic Development Corporation is the City's primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC's mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City's competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City's many opportunities. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.