Good Faith Efforts - Are You in Compliance?

February 20, 2024

Image credit:

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 (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 (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 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, 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 helps maximize participation and removes the administration burden from you. Reach out to us today and speak with one of our DiversityAssured Program Specialists. 

Learn about our DiversityAssured Program!

TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

Topics: Good Faith Efforts, MWBE

Written by The TSIB Team

All Authors and TSIB