Construction Contracting in the Zero Emission Transportation Sector: Evidence from Underrepresented Businesses

Abstract

This study investigates the degree to which underrepresented construction contractors face challenges in California's zero-emission transportation sector to devise a simpler and more efficient bonding structure. Using a survey dispersed over underrepresented businesses across the state, the study provides several suggestions for a statewide bonding program that caters to the needs of contractors. Both qualitative and quantitative methods are used in the study. The survey data are evaluated using econometric tools to analyze whether there are any statistically significant associations between contractors' characteristics and their industry experiences. Focus groups and focused interviews are conducted to identify those perspectives the survey does not capture, enhancing the quantitative results with firsthand accounts from contractors. This research reveals that many barriers prevent underrepresented businesses from competing effectively and having a more efficient bonding structure. The main obstacles include lack of funds, redundancies in the system such as the retention requirement, insufficient availability of necessary resources, the presence of unconscious bias, problems encountered in guaranteeing faster payments by having a payment clause that works very similarly to the federal system, and relatively high percentages required for bonding and lack of statewide consistency of funding assistance in the bonding process. These businesses exhibit a lack of information and trust regarding the efficacy and accessibility of these programs. The findings indicate the need for legislative changes that prioritize increasing these contractors' access to resources, transparency, prompt automatic payment, and mentee-mentor support. The study also recommends reorganizing the current support systems, such as by implementing an online forum to assist underrepresented contractors, enabling them to compete and cooperate more effectively and contribute to a more equitable and sustainable zero-emission transportation sector in California.

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Identifiers

DOI

10.31979/mti.2024.2348

Journal

Unknown journal

Year

2024