Small contractors encouraged to bid on city public construction projects

In an effort to try to equalize the playing field for builders on public construction projects, the city is encouraging small contractors to take advantage of the recently-increased bond guarantees by the Small Business Services Department, which could allow them to bid on at least $370 million in city projects per year. Previously, many builders were priced out of the market on large projects because they couldn’t qualify for the necessary bonds that guard the city against financial losses in case builders do not carry their assignments to completion. With the bond guarantees now up to $5 million, small building companies will have a fighting chance at landing public contracts. The policy change is especially important for small businesses because public construction activity is likely to outpace activity in the private sector over the next couple of years, said Lou Coletti, CEO of the Building Trades Employers’ Association.