Skanska USA started the Construction Management Building Blocks (CMBB) Program to build a stronger and more diverse construction industry. The commitment reflects a belief in the power of MWBEs to grow and participate once given the right tools.

Success on any construction job requires having skilled contractors and subcontractors who bring the right knowledge and tools to the project. Larger projects are usually the forte of big construction companies, essentially blocking out smaller companies that may lack the bond capacity and/or insurance requirements necessary to managing a project bid and to understanding the various ways to expand. Skanska, a powerhouse global construction company, decided to take matters into its own hand and use its connections, resources, and expertise to help small- and medium-sized minority and women owned business enterprises (MWBEs) develop the skill sets and knowledge needed to become viable competitors for multi-million construction project contracts. As a result of the commitment, Skanska launched the Construction Management Building Blocks (CMBB) Program seven years ago, setting a high standard for diverse business development.

Ed Szwarc, executive vice president for Skanska USA’s Pennsylvania and Delaware operations, says that Skanska’s commitment to help small minority enterprises, particularly MWBEs, reflects the company president’s top down directive that Skanska projects “should represent the communities where we work.” For that to happen, Skanska determined that actively assisting qualified MWBEs get to positions where they could participate in larger construction contracts would further that goal.

To achieve this goal, in 2006 Skanska launched the Construction Management Building Blocks program. The first class was held in New Jersey and graduated 36 small-business owners. Since then, other classes have been held in over a dozen cities across the United States. This year, Skanska launched its first CMBB program in Philadelphia. The seven week program was held at Temple University ultimately, providing the school with more qualified MWBEs available for its own projects. Skanska provides all course materials at no cost to course participants. The CMBB program class schedule includes topics like business development and marketing, access to capital, RFP responses, construction accounting, estimating and bidding, human resource management, on-site construction management, and many others.

The Right Kind of Insider Information

Skanska has long been committed to diversity and inclusion. When asked how CMBB helps Skanska, Szwarc is clear that it is helping with the development of more qualified minority and women owned businesses that it can do business with as opportunities arise. However, the CMBB course is not limited in its perspective. Skanska wants MWBEs to participate in the CMBB course and get on the bid lists of multiple construction managers and not just Skanska. As a result, the course information is generic for the most part and not specific to one company. Skanska promotes its MWBE contractors and subcontractors to other companies and organizations, like healthcare systems and universities. CMBB emphasizes that MWBEs need to be versatile and ready to work with Skanska and other contractors.

“The CMBB program helps MWBEs understand how to compete in larger markets, how to gain the knowledge to succeed, how to grow at the right pace, and how to anticipate and manage typical problems that come with growth,” adds Szwarc. Skanska does not wait for MWBEs to approach them either. The company works with MWBE nonprofit agencies, like Minority Councils, to identify potential CMBB participants.

Does the program work? James Eley, Founder and President of Eley Electrical Contractors, LLC, recently graduated from Skanska’s CMBB program in Philadelphia. “In just the third week of the program I had already learned some things that have helped me move forward in my business. The course gave me an opportunity to network with other participants, and that will lead to new business also.” Eley Electrical Contractors has done mostly resident work until 2005, when it decided to move into commercial work. James Eley said the company needed help breaking into the $100,000 plus range of commercial projects. The CMBB course is giving him that help by providing the kind of “insider” information MWBEs need to compete on a more equal basis. Eley also points out that the CMBB Program has given him a year’s worth of knowledge in a seven-week course.

Paving the Way for Capacity Building

Szwarc adds, “Skanska is an excellent example of how a large company can use its strength to help smaller companies through mentoring and instruction. We help MWBEs with capacity building by showing them how to expand their services and teach the skills they might not get otherwise.” In fact, the CMBB program is a model for other industries, in that the curriculum could be changed to benefit a specific industry interested in growing small businesses.

The Skanska Construction Management Building Blocks program has seen over 350 companies or organizations participate since it was initiated in 2007. In 2012, Skanska’s Philadelphia Office had more than $173 million in active contracts with diverse firms, representing 21 percent of its Greater Philadelphia business. These numbers are presented as proof the CMBB is not only needed, but can serve as an influential economic program.

It is hoped that readers from other industries will take this information to heart and begin thinking about how they can make an impact. There are so many qualified MWBEs and other small and diverse businesses that are ready to expand but simply need some help understanding how to leverage their talents and expertise in a way that builds capacity. Skanska has proven that all it takes is a leader to pave the way.

About DiversityPlus Magazine:
DiversityPlus is much more than “just” a supplier diversity magazine.Thanks to its strong media platform, which includes the print edition, digital magazine, website, weekly newsletter, social media, blogs, and video, DiversityPlus is able to provide print readers in seven countries and more than 117,000 digital readers worldwide with access to leading-edge supplier diversity content, webinars, and events.

What you’ll read in the pages of DiversityPlus represents the most current and impactful thinking about diverse supplier relationships. Plus, with over 17 years in print, our trend research, interviews, and feature articles showcase a depth of industry relationships unmatched by any other supplier diversity publication.