Public Works contracting represents a significant opportunity for small construction firms. Last year, 42,000 public works contracts worth $7 Billion were awarded. Ten percent of those projects were awarded through a Small Works Roster. Effective July 1, 2024 new changes to state law may make it easier for small businesses and public agencies to use the small works roster process to contract small public works projects valued at $350,000 or less. The law passed during the previous Legislative session:
- Creates a statewide small works roster through MRSC to ease the burden of registering on multiple sites
- Establishes a NEW “Public Works Small Business Enterprise Certification” through the Office of Minority & Women’s Business Enterprises. This new certification will launch in early Spring.
- Adds a direct contracting option for projects under $150,000. If there are 6 or more available certified small businesses to select from, the direct award must go to a small business.
- Allows agencies to waive or reduce retainage bonds for projects $5,000 or more (there is no retainage or performance bond requirement for under $5,000)
Next Steps:
Join the MRSC Roster – The Roster is currently being used by nearly 700 agencies seeking small works contractors across the state
Get Certified – The new Public Works Small Business Enterprise certification won’t be ready until Spring, but firms that are eligible for any of OMWBE’s current certifications should consider applying for certification through OMWBE now. Firms that are already certified will be able to complete a short firm to be certified as a Public Works Small Business Enterprise.- Get a plan – Your local APEX Accelerator Advisor can help you create a marketing strategy to capture more public works jobs.
