---
title: Good Faith Efforts - Are You in Compliance?
description: Learn how to ensure compliance with Good Faith Efforts in construction projects. Understand the importance of diversity goals and obligations to avoid penalties.
image: https://blog.tsibinc.com/hubfs/shutterstock_1182038062.jpg
---
- [Resources](https://tsibinc.com/resources/)
- [Contact Us](https://tsibinc.com/contact-us/)
[Pay Online](https://tsibinc.com/pay-online/)
[Wrapworks Contractor Portal](https://wrapup.vuewrapup.com/contractorportal)
[](https://tsibinc.com)
- Insurance
- Commercial Insurance
- Commercial Insurance 1
- [Automobile Liability](https://tsibinc.com/insurance/commercial-insurance/automobile-liability/)
- [Builder’s Risk](https://tsibinc.com/insurance/commercial-insurance/builders-risk/)
- [Property Insurance](https://tsibinc.com/insurance/commercial-insurance/property-insurance/)
- [Pollution](https://tsibinc.com/insurance/commercial-insurance/pollution-legal-liability-insurance/)
- [Cyber](https://tsibinc.com/insurance/commercial-insurance/cyber/)
- [Employment Practice Liability & Officer’s Liability](https://tsibinc.com/insurance/commercial-insurance/directors-officers-employment-practices-liability/)
- Commercial Insurance 2
- [Excess Liability](https://tsibinc.com/insurance/commercial-insurance/excess-liability-insurance/)
- [General Liability](https://tsibinc.com/insurance/commercial-insurance/general-liability-insurance/)
- [Employee Benefits](https://tsibinc.com/insurance/employee-benefits-programs/)
- [Owner’s Protective Professional Indemnity](https://tsibinc.com/insurance/commercial-insurance/owners-protective-professional-indemnity/)
- [Professional Liability](https://tsibinc.com/insurance/commercial-insurance/professional-liability/)
- Commercial Insurance 3
- [Railroad Protective Liability](https://tsibinc.com/insurance/commercial-insurance/railroad-protective-liability/)
- [Terrorism](https://tsibinc.com/insurance/commercial-insurance/terrorism/)
- [Umbrella](https://tsibinc.com/insurance/commercial-insurance/umbrella/)
- [Workers’ Compensation Insurance](https://tsibinc.com/insurance/commercial-insurance/workers-compensation-insurance/)
- Risk Solutions
- [Captives](https://tsibinc.com/insurance/risk-solutions/captives/)
- [Claims Services](https://tsibinc.com/insurance/risk-solutions/claims-services/)
- [Insurance Consulting](https://tsibinc.com/insurance/risk-solutions/insurance-consulting/)
- [Risk Management](https://tsibinc.com/insurance/risk-solutions/risk-management/)
- [Safety & Loss Control](https://tsibinc.com/insurance/risk-solutions/safety-loss-control/)
- [Small Contract Bond Program](https://tsibinc.com/insurance/risk-solutions/small-contract-bond-program/)
- [Surety Bonding](https://tsibinc.com/insurance/risk-solutions/surety/)
- Wrap-Ups
- [Co-Broker Partnerships](https://tsibinc.com/wrap-ups/co-broker/)
- [OCIP/CCIP](https://tsibinc.com/wrap-ups/ocip-ccip/)
- [Risk Management Information System](https://tsibinc.com/wrap-ups/risk-management-information-system/)
- [Wrap Administration](https://tsibinc.com/wrap-ups/wrap-administration/)
- [Wrap Claims Services](https://tsibinc.com/wrap-ups/claims-services/)
- [Wrap Risk Management](https://tsibinc.com/wrap-ups/risk-management/)
- [Wrap Safety & Loss Control](https://tsibinc.com/wrap-ups/safety-loss-control/)
- Industries
- [Aviation](https://tsibinc.com/why-tsib/industries/aviation/)
- [Civil Construction & Infrastructure](https://tsibinc.com/why-tsib/industries/civil-construction-infrastructure/)
- [Construction](https://tsibinc.com/why-tsib/industries/construction/)
- [Data Centers](https://tsibinc.com/why-tsib/industries/data-center/)
- [Education](https://tsibinc.com/why-tsib/industries/education/)
- [Industrial & Manufacturing](https://tsibinc.com/why-tsib/industries/industrial-manufacturing/)
- [Life Sciences](https://tsibinc.com/why-tsib/industries/life-sciences/)
- [Public Entity](https://tsibinc.com/why-tsib/industries/public-entity/)
- [Real Estate Developers](https://tsibinc.com/why-tsib/industries/real-estate-developers/)
- [Sports & Entertainment](https://tsibinc.com/why-tsib/industries/sports-entertainment/)
- MWBE Compliance
- Compliance Services
- [Program Consultancy and Owner’s Representative](https://tsibinc.com/mwbe-compliance/services/program-consultancy-and-owners-representative/)
- [Project Compliance and Monitoring](https://tsibinc.com/mwbe-compliance/services/project-compliance-and-monitoring/)
- [Specialty Programs](https://tsibinc.com/mwbe-compliance/services/specialty-programs/)
- [Small Business Capacity Building](https://tsibinc.com/mwbe-compliance/services/small-business-capacity-building/)
- [Software Solutions](https://tsibinc.com/mwbe-compliance/services/software-solutions/)
- Stakeholders/Clients
- [Owners/Agencies](https://tsibinc.com/mwbe-compliance/stakeholders-clients/owners-agencies/)
- [General Contractors and Construction Managers](https://tsibinc.com/mwbe-compliance/stakeholders-clients/general-contractors-and-construction-managers/)
- [Trade Partners](https://tsibinc.com/mwbe-compliance/stakeholders-clients/trade-partners/)
- [Diverse Businesses](https://tsibinc.com/mwbe-compliance/stakeholders-clients/diverse-businesses/)
- [Workforce](https://tsibinc.com/mwbe-compliance/stakeholders-clients/workforce/)
- Training
- [Federal/State/Local Private Requirements](https://tsibinc.com/mwbe-compliance/training/federal-state-local-private-requirements/)
- [Fraud Monitoring and Mitigation](https://tsibinc.com/mwbe-compliance/training/fraud-monitoring-and-mitigation/)
- [Insurance/Bonding/Capital](https://tsibinc.com/mwbe-compliance/training/insurance-bonding-capital/)
- Opportunities
- [Business Enterprise Questionnaire](https://tsibinc.com/mwbe-compliance/opportunities/business-enterprise-questionnaire/)
- [Out of Work List](https://tsibinc.com/mwbe-compliance/opportunities/out-of-work-list/)
- [MWBE Support & Services](https://tsibinc.com/mwbe-compliance/opportunities/mwbe-support-services/)
- Why TSIB
- [Our Difference](https://tsibinc.com/why-tsib/our-difference/)
- [Meet the Team](https://tsibinc.com/why-tsib/meet-our-team/)
- [Careers](https://tsibinc.com/why-tsib/careers/)
- [Blog](https://blog.tsibinc.com/)
This is a search field with an auto-suggest feature attached.
- There are no suggestions because the search field is empty.
{id=52494293323, name=Good Faith Efforts, slug=good-faith-efforts}
# Knowledge Corner
February 20, 2024
## Good Faith Efforts - Are You in Compliance?
- [Tweet](https://twitter.com/share)
No matter if you are an Owner, an Agency, or a General Contractor, it’s important that your construction team understands the projects’ [diverse business](https://finance.cornell.edu/procurement/about/procurement-initiatives/diversity/diverse-business) (DB) goals and the good faith obligations if they aren’t met.
During the procurement phase of a contract, it can be challenging to ensure the DB goal will be met. The best way to guarantee that DB participation remains on track is to [perform Good Faith Efforts](https://blog.tsibinc.com/what-are-good-faith-efforts-in-construction-insurance) (GFE) for each contract. The GFE and the documentation are only necessary if a project fails to achieve a goal.
The Code of Federal Regulations [49 CFR Part 26.5](https://www.ecfr.gov/current/title-49/subtitle-A/part-26) defines GFE as the efforts to achieve a Disadvantaged Business Enterprise (DBE) goal or other requirement by their scope, intensity, and appropriateness to the objective, can reasonably be expected to fulfill the program requirement.
Good Faith Efforts are frequently enumerated as specific contract requirements and vary with funding and agreements. The best way to perform GFE is to draft a checklist based on the regulations or waiver requirements for each project. Each activity should be assigned a responsible party, with a due date or an overall schedule.
As an Owner, Agency, or General Contractor, you need to ask yourself, are you:
- Soliciting all qualified certified DBs through email, phone, advertising, etc.?
- Helping obtain [bonds](https://tsibinc.com/surety/small-contract-bond-program/), insurance, and credit?
- Aiding in obtaining equipment, materials, professional services, etc.?
- Utilizing DB focused organizations?
- Interfering with DB independence?
- Documenting and tracking all your efforts?
- Rejecting bids for only sound reasons?
- Negotiating in Good Faith?
- Providing access to plans, specs, and/or contracts?
- Unbundling bid packages?
Reviewing a simple checklist like this can help determine if you need additional support. If the answer is “no” to a lot of those questions, working with a company like TSIB is a great way to make sure you are performing your GFE correctly. Our [DiversityAssured Program](https://tsibinc.com/insurance-services/diversityassured-program/) helps maximize participation and removes the administration burden from you. [Reach out](https://tsibinc.com/contact-us/) to us today and speak with one of our DiversityAssured Program Specialists.
[](https://cta-redirect.hubspot.com/cta/redirect/3391365/4a37c251-522c-4d80-bc3b-63e922a5dcf2)
TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; [Bergen County, NJ](https://tsibinc.com/contact-us/new-jersey/); [Fairfield County, CT](https://tsibinc.com/contact-us/connecticut/); [Philadelphia, PA](https://tsibinc.com/contact-us/philadelphia/)
Texas: [Austin](https://tsibinc.com/contact-us/texas/), San Antonio, Houston, Dallas
California: [Orange County](https://tsibinc.com/contact-us/santa-ana-california/), [Los Angeles County](https://tsibinc.com/contact-us/valencia-california/), Riverside County, San Bernardino County, [San Diego County](https://tsibinc.com/contact-us/valencia-california/)
Image credit: shutterstock.com/g/Narin++Nonthamand
Topics: [Good Faith Efforts](https://blog.tsibinc.com/topic/good-faith-efforts), [MWBE](https://blog.tsibinc.com/topic/mwbe)
Written by [The TSIB Team](https://blog.tsibinc.com/author/the-tsib-team)
All Authors and TSIB
### Comments
Comment Cancel
[Back to Blog](https://blog.tsibinc.com/)
## Sign-up for TSIB’s weekly Blog
[Sign Up](https://tsibinc.com/blog-sign-up)
[](https://tsibinc.com)
**Join our dynamic team!**
At TSIB, we are Committed to our Clients and to our workforce.
[Learn more](https://tsibinc.com/careers/)
###### Client support
**Insurance:**
[(201) 267-7500](tel:2012677500)
**Wrap-Ups:**
[(203) 945-1780](tel:2039451780)
**Surety:**
[(201) 267-7500](tel:2012677500)
**Employee Benefits:**
[(213) 369-4496](tel:2133694496)
[View All Contacts](https://tsibinc.com/contact-us/)
###### Recent Blog
- [Construction Insurance: Why a Coordinated Risk Strategy Matters](https://blog.tsibinc.com/construction-insurance-why-a-coordinated-risk-strategy-matters)
- [3 Pillars that Build a Safety Culture](https://blog.tsibinc.com/3-pillars-that-build-a-safety-culture)
- [The Human Side of Construction Safety](https://blog.tsibinc.com/the-human-side-of-construction-safety)
- [How to Manage Heat Safety on Construction Jobsites](https://blog.tsibinc.com/how-to-manage-heat-safety-on-construction-jobsites)
Blog Sign-Up
[Sign up today](https://tsibinc.com/blog-sign-up)
###### Connect with us
-
-
-
-
-
[](https://www.insurancejournal.com/top-100-insurance-agencies/)
The material on the website is for informational purposes only. It should not be construed as legal advice and is recommended you contact your attorney for legal advice.
Copyright © 2026 by Turner Surety & Insurance Brokerage, Inc.
- [Locations](https://tsibinc.com/contact-us/)
- [Terms of Use](https://tsibinc.com/terms-of-use/)
- [Privacy Policy](https://tsibinc.com/privacy-policy/)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "The TSIB Team",
"url" : "https://blog.tsibinc.com/author/the-tsib-team"
},
"dateModified" : "2024-06-04T14:16:52.200Z",
"datePublished" : "2024-02-20T16:00:00.000Z",
"headline" : "Good Faith Efforts - Are You in Compliance?",
"image" : [ "https://blog.tsibinc.com/hubfs/shutterstock_1182038062.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.tsibinc.com/good-faith-efforts-are-you-in-compliance",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.tsibinc.com/hubfs/turner-surety-and-insurance-brokerage-r-logo2x.png"
},
"name" : "TSIB"
}
}
```