What are Good Faith Efforts?

August 10, 2021

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There are two ways to fulfill diversity goals:

  1. Achieve the goal
  2. Document & track the efforts taken in case the goal is not fulfilled

Diversity goals are designed to maximize participation by certified firms. However, if you’re not able to achieve them, you can document your efforts and still receive credit for trying. This documentation process is known as Good Faith Efforts.

Good Faith Efforts (GFE) are the contractual obligations to fill diversity goals on public and private projects. These activities are required for many public and private contracts, often with specified regulatory requirements.

Since some projects include liquidated damages for failure to achieve diversity goals, having a Good Faith Efforts program in place may be an important defense in case there is a shortfall in participation. Depending on funding sources and program requirements Good Faith Effort's obligations vary from project to project, so understanding the specific requirements for each contract is essential.

As an Owner, Agency, General Contractor, or Prime Contractor, your company may not have the time, money, or capabilities to perform Good Faith Efforts yourself. That’s why it’s important to hire a Third-Party company that can. The Federal Transportation DBE regulations provide clearly defined Good Faith Efforts responsibilities. When looking for a Third-Party company make sure they provide the following services:

  • Advertising opportunities
  • Custom list building
  • Email solicitations
  • Follow-up phone calls
  • Certification reviews
  • Waiver applications
  • Utilization tracking
  • Recordkeeping (for these items)
Even if the goal is achieved, it’s still important to document and track your efforts. There are unforeseen circumstances that could occur including business closings, scheduling conflicts, change orders, etc.

If you need help accomplishing your diversity goals and would like to learn more about how our Good Faith Efforts program can help reach out to TSIB  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, NJFairfield County, CTPhiladelphia, PA

Texas: Austin, San Antonio, Houston, Dallas

California: Orange CountyLos Angeles County, Riverside County, San Bernardino County, San Diego County

Topics: Good Faith Efforts

Written by The TSIB Team

All Authors and TSIB