What Does Commercially Useful Function Mean (CUF)?

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In order to receive credit for your project's compliance requirements by hiring Disadvantaged Business Enterprises (DBEs), you must showcase that the DBEs are performing a commercially useful function. In the past, some Contractors would hire DBEs to fulfill their diversity requirements but did not have them actually perform the work. DBEs would sub out their work to another firm (typically not a DBE) that would fulfill all of the work instead. To prevent this from happening, Federal, State, and local regulations were put in place that in order to receive credit, hired DBEs must provide a commercially useful function.

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Topics: Commercially Useful Function (CUF), MWBE

What is a Women-Owned Business Enterprise (WBE)?

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Almost 20% of all firms are owned by women according to the 2018 Census. That number has been increasing over the years, especially in construction.

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Topics: Diversity Outreach, MWBE

What Is a Minority Business Enterprise (MBE)?

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Many construction projects have both State & Federal Diversity participation goals that Owners, General Contractors, and even Prime Contractors are trying to achieve. These goals often require that a certain percentage of the Project’s contract value is awarded to certified MBE firms.

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Topics: Diversity Outreach, MWBE