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  • Paving The Way: A Future Of Equity In Louisville’s Construction Projects

    kfields Introduction: As the buzzing sounds of construction sites continue to echo through the streets of Louisville, the reality of minority inclusion—or lack thereof—in these major projects has become a topic of critical importance. The recent segment of ‘Russell on the Move!’ on December 21, 2023 has shed light on this pressing issue. Hosts Kevin Fields, Sr. and Herbert Johnson adeptly steered a discussion with guests Carl Brazley and Vincel Anthony of 7PM Group, LLC that explored the crucial need for intentionality and accountability in minority inclusion within Louisville’s burgeoning construction industry. In the heart of Louisville, a clarion call for equity and intentional minority inclusion in construction projects resonates strongly on a topic that holds the key to catalyzing sustainable change in the realm of construction management and supplier development within Louisville’s Black community. This blog post encapsulates the key themes of that insightful conversation and what it portends for the future of equity in construction projects in Louisville and beyond. Critical Importance of 7PM Group: The co-founders of the 7PM Group, named poignantly after the biblical symbol of perfection, speak to the significance of their personal and professional commitments to corporate business endeavors. They emphasized their commitment to pressing Kentucky to exemplify inclusivity and to valiantly guard against Louisville’s “brain drain” by cherishing the local capacities of minority contractors. The rich industry insights of Anthony and Brazley help to paint a vivid picture of the economic landscape’s exclusive tendencies. As expert project managers and business intellectuals, our guests seek to deconstruct the complexities faced by minority contractors in securing their share of lucrative multi-billion dollar construction projects. Clients of 7PM Group are steered towards the ever-urgent need for intentional spending within the African American business sector. Economics of Minority Contractor Participation: The discussion underscores the reality that, despite set goals for minority and women-owned business participation—15% and 8-10% respectively—the actual figures are falling woefully short. It points to the lack of intentionality and commitment at various levels, from the city government to corporate entities, as the root cause of this disparity. The discussion stresses the importance of African American businesses being prepared for and insisting upon “fair-share” inclusion in the economic of major construction projects, while the community as a whole holds projects accountable for minority participation when opportunities arise. Best Practice in Contractor/Supplier Diversity, Equity & Inclusion: The Norton West Louisville Hospital project is hailed as a beacon of hope, exemplifying what can be achieved when project owners, like Norton Healthcare, make a conscious effort to ensure minority participation in their endeavors. Other projects, including the Louisville Urban League’s Sports and Learning Complex and the KFC YUM! Center, we also touted and DEI success stories, as a result of their achieving higher levels of minority-owned and women-owned business participation. In each of these projects, the respective owners made minority participation a requirement and put operating measures in place to make sure this objective was achieved. Policy & Advocacy: Shifting focus to policy, the discussion addressed the gaps between aspiration, accountability and action, highlighting the importance Louisville Metro Governments’s role in enacting and enforcing policies that could potentially establish unambiguous expectations and standards for minority inclusion in contracting. This narrative is one of accountability, intentionality, and civic empowerment. The 7PM duo emphasized the urgency of establishing clear policies and enforcement mechanisms. This is not only to guarantee fair participation but also to maintain Louisville’s reputation as an evolving, inclusive city. In this vein, Mayor Craig Greenberg’s role was highlighted, with expectations for him to embrace initiatives to raise the standards for minority participation in contracting. The call also extends to government and corporation levels, demanding advocacy initiatives that carry weight and drive real change. Future Outlook: As we step into 2024, the conversations around policy and sustainable practices for inclusion continue to gain momentum. With major projects like Churchill Downs expansion, Waterfront Park Phase IV, Reimagine 9th Street, and the Baptist East expansion on the horizon, it is imperative that a pledge to not only dream of a more inclusive future but to actively build the road toward it. Not to be overlooked, and certainly not unmentioned by the ‘Russell on the Move!’ experts, is the grassroots impact of such initiatives.  The question remains: how do we ensure that these discussions translate into concrete actions that leave a lasting impact? Accountability starts with conversation, but it must evolve into concerted, concrete strategies that all stakeholders adopt—from community leaders to business owners, and from policy-makers to the workers laying the foundations of our city’s infrastructure. A future of equity in Louisville’s construction projects is within reach if we recognize the power inherent in each decision we make, in each policy we advocate for, and in each contract we award. Conclusion: The message of this podcast is clear: the road to equity is one we must pave together, with persistence, dedication, and an unwavering commitment to the principle that a community’s prosperity is measured by the inclusivity of its economic practices. Louisville is carving out its path toward a future where opportunity isn’t just a possibility—it’s a given, and the sound of construction will become a harmony of progress for all. Kevin Fields, Sr., navigated the dialogue towards the crux of minority inclusion, shedding light on the disparity between goals and reality. With aspiring percentages set for minority and women-owned businesses, the journey towards actualizing the goals of 15% and 8-10% participation, respectively, is fraught with hurdles. However, the local projects that have emerged as an exemplar are those with that have owner’s who insist upon and enforce the achievement of minority participation goals. A concern remains that this is the exception rather than the rule withing the local contruction project managment industry which too often results in many large projects falling short of intentional inclusivity.This episode underscored the potency of policy and advocacy as vehicles to drive and entrench minority participation. Emphasis was place on the endurance of inclusion policies that straddle successive governmental administrations and the pressing need for those holding the reins – the project owners – to practice integrity in enforcing such policies, in both public and private sectors. The podcasts gives perspectives on the importance of intentional outreach and engagement efforts on the part of project leaders to promote contracting and workforce participation opportunities that can beneft the Black community, as foundational elements to uplift minority businesses. The episode’s curtain drew to a close with calls for donations to honor 75 years of impactful service by the Louisville Central Community Centers. The 75-year Aniversary challenge launched by the Louisville Central Community Centers is a testament to the enduring spirit of advocacy in the community. Click Here to listen to the entire podcast:

  • How Construction Firms Can Reach Equity, Inclusion Goals

    Reports of payment shortages and nonpayment to Black subcontractors on the Beecher Terrace redevelopment project in west Louisville are very unfortunate — and yet not surprising. Recent protests by subcontractors who have worked on the redevelopment effort brought to light the need for more engaged project management to ensure a level playing field for minority- and women-owned businesses (MWBEs) so they not only get a chance to participate in substantial construction projects but come out whole in the process. Beecher Terrace project manager Messer Construction Co. had good intentions and made earnest efforts to give MWBE subcontractors opportunities while striving to meet minority inclusion goals for the project. But anyone with experience working on publicly funded projects knows there is a great deal of complicated, detailed paperwork involved that must meet exacting standards of reporting before the general contractor, subcontractors and sub-subcontractors are issued their pay. So, yes, this project was a potential minefield for administrative confusion with the potential for backlogs in the payment process. ‘The glue’ leads to satisfactory outcomes There is much work to be done in this arena to ensure minority-owned businesses have opportunities where they can meet expectations and succeed. Unfortunately, there have been way too many construction projects through the years where the efforts to achieve equity and inclusion goals have fallen short. That’s why we started The 7PM Group in 2017. Those of us who work at The 7PM Group understand the challenges involved and seek to work with project owners, general contractors and minority-owned businesses to prevent lamentable scenarios where all too often minority-owned businesses are left on the sidelines. The 7PM Group, a minority-owned business itself, was formed with the intent of working mainly within the construction industry to serve as a connector, or “the glue” if you will, that assures satisfactory outcomes for project owners, general contractors and subcontractors. By their very nature those entities have their own ways of operating, so processes and communication often get lost in translation. JCPS, 7PM Group succeed on diversity front Short of giving away our secret sauce, we can attest that we apply our knowledge and experience so that construction project owners, general contractors and subcontractors all benefit. Just ask the leadership of Jefferson County Public Schools. JCPS Superintendent Marty Pollio and John Marshall, JCPS chief equity officer, have made it clear to the general contractor community that MWBE contract goals (15% for MBEs and 10% for WBEs) at JCPS will be met. JCPS doesn’t just have goals — that is common project speak. Instead, JCPS has a commitment to reach or exceed equity and inclusion goals with data tracked to ensure that happens. Suc h a commitment is uncommon. Since 2019, The 7PM Group has worked with Marshall, Delquan Dorsey and others at JCPS on diversity and inclusion efforts on projects at many of the district’s 154 schools, including Ballard, Fairdale, Manual and Shawnee high schools. At Shawnee, The 7PM Group guided the diversity process that enabled JCPS to exceed its 15% minority-owned business participation goal by attaining 19% participation on that $36.4 million project. The 7PM Group helps JCPS and general contractors find and manage MWBEs. We also provide MWBEs with support and advice they need to ensure they have proper licensing and insurance — and to make sure they get paid in a timely fashion. JCPS and The 7PM Group were working together on equity and inclusion efforts long before events of last year sharpened the focus on the need to provide minority- owned businesses greater access to opportunities so they have an equal chance to succeed. Varied experiences result in unique lens Yes, the evolution of American culture on the racial equity front may have picked up speed last year, and many people now have new ways of thinking about race, gender, equity and inclusion. Belief and understanding are a great first step. The harder part comes next: application. Because the combined business experiences of 7PM Group’s principals and staff are varied and wideranging, we can connect the dots. Our backgrounds give us a unique lens on project and process management in the business world. We have held executive and middle management positions at companies in industries including construction, engineering, technology, property management and marketing. We also have experience as entrepreneurs in those industries as well and have had the opportunity to work on numerous publicly funded efforts, one of which was the Ohio River Bridges Project. Our work on the inclusion and diversity front with clients such as JCPS, Gray Construction Co., OneWest and The Plan Room, a recently launched resource for minority contractors, gives us a chance to ensure that minority-owned businesses get opportunities that never came their way previously. We share the story of 7PM Group and its objective to “be the glue” among parties in the construction industry not for self-aggrandizement but to illustrate how it’s possible to ensure equity and inclusion goals are measured, managed and met. More efforts of this kind will lead our culture and our country to a realistic level playing field in business. We look forward to that day and plan to do our part to make it happen. By: Vincel Anthony Vincel Anthony is president of the 7PM Group. As originally published by The Courier Journal

  • JCPS/7PM Group - The $36.4 million Shawnee HS Renovation Story

    By Carol Timmons for 7PM Opportunities for Louisville-area minority-owned companies often are few and far between — especially in the construction industry. Projects with multi-million dollar budgets controlled by large, majority-owned general contracting firms routinely leave minority-owned businesses on the sidelines. “We cannot find them.” “They cannot meet qualifications.” “They are not prepared.” “They are not big enough.” “They do not have the right paperwork and licenses.” So goes the chorus of excuses. But do they ring true? Can a multi-million dollar construction project be accomplished in Louisville on deadline and on budget — and meet goals for minority- and women-owned business enterprise (MWBE) participation Turns out, it can. “Not only is it doable, it is either a mandate in some instances like with the federal government, or a goal by most major corporations and institutions. However due to discrimination, the very reason these goals and mandates were put into place, many general contractors and procurement officers in major corporations and institutions simply ignore it. Many of the entities that have set up goals and mandates have no accountability nor monitoring to enforce it. Thus, there is no compliance. Minority businesses have long shouted about the unfair practices that they have had to endure due to the lack of accountability as it relates to the goals and mandates that are on the books but the business community has turned a blind eye to.“ Carl Brazley – CEO, 7PM Group Jefferson County Public Schools is establishing a successful template for how to include MWBEs with the $36.4 million renovation project under way at The Academy @ Shawnee, located at 4001 Herman St. in Louisville’s West End. Work at Shawnee will update the facility, constructed in 1927, to modern standards for school buildings, including new mechanical systems. The project also includes the reopening of the school’s third floor that was condemned in 1981 and has remained unused with broken glass and debris littered in the vacated space. Work is well under way on the Shawnee project and the unprecedented participation level of MWBEs is something school district officials are proud of, said Dr. John Marshall, Chief Equity Officer for JCPS. “I can honestly say what I’ve learned from the Shawnee project is it is possible,” Dr. Marshall said. “A lot of times I have heard, beating my head against the wall: ‘Well, minority contractors and minority entrepreneurs just aren’t out there.’ Or ‘they don’t have the capacity to do what we need’ — which is absolutely false. What I have learned is — when you are intentional and unapologetic and tenacious about getting minority contractors to bid and then awarding them earned contracts — you can do it.” Louisville-based 7PM Group, a minority-owned consulting firm and supplier diversity champion, has played a significant role in connecting JCPS officials with MWBEs that are working on the project, which is expected to be completed in late 2021. MWBE participation in the Shawnee construction project is on track to meet the women-owned business goal of 10 percent and exceed the minority-owned business goal of 15 percent with 19% participation. Six women-owned businesses, and 10 minority-owned businesses are working on the project. 7PM Group’s advisory services have enabled JCPS, as project owner, and EH Construction LLC, the project’s general contractor, to find and subcontract with MWBEs on the Shawnee work. “There is nobody who understands this work better” than 7PM Group, Dr. Marshall said. Company officials, including CEO Carl Brazley and President Vincel Anthony, had to “give me a Cliff’s Notes version of what this work really looks like and show me the ins and outs.” Goals may be good. But goals are not enough, according to Anthony. “A lot of businesses and organizations think they’re doing a good job on the diversity front because they have a goal for MWBE participation,” he said. “They don’t focus on reaching the goal. They consider the job done by setting the goal. Or they will hire a diversity person and feel they have done a good deed. Then they don’t support that diversity person or don’t give them proper authority to achieve pushing forward and cannot be successful. This has happened unfortunately for years and years.” Not so at JCPS — anymore. Dr. Marshall credits JCPS Superintendent Dr. Marty Pollio with seeing the significance of providing opportunities for minority- and women-owned businesses in JCPS contracts. To make that happen, Dr. Pollio empowered Dr. Marshall, giving him the reins to insist on adherence to the MWBE participation goals. Only a dozen or so school districts in the country have a racial equity policy in place, Dr. Marshall said, adding that the majority of those districts have a minority in leadership. “Here we have this white man ushering in racial equity in an epicenter of racial injustice right now, and he has not yet wavered from that work,” Dr. Marshall said of Dr. Pollio. One of the “gladiators” who Dr. Marshall sees pushing forward the racial equity work at JCPS is Delquan Dorsey, JCPS’s Community Engagement and Supplier Diversity Coordinator. “Delquan steps into the arena every day,” Dr. Marshall said. “He unapologetically advocates and pushes for black wealth, equity, inclusion of all, and he does it in some of the most uncomfortable circumstances. … And Delquan does it knowing and understanding that this is for the betterment of Louisville.” General contractors were brought up to speed on JCPS’s intentional commitment to MWBE participation before bids were let on projects this year. “The goals have always been outlined in the specifications. But at the beginning of 2020 it was made abundantly clear it was going to be a major emphasis,” said Anthony Hall, Vice President of EH Construction, which won the bid to serve as general contractor on the Shawnee project. The challenge seemed daunting at first. “We had to take a step back and say, ‘OK they’re going to take this serious. And it’s not just going to be, ‘Let’s see how the bids come in.’ They are really going to expect contractors to get out there and beat the bushes and find minority- or women-owned contractors to be on this project — either to be a supplier or to be physically doing labor on this project,’ ” Hall said “The percentage we were asked to make our goals was a little overwhelming at the beginning,” Hall added. “But, thankfully, the 7PM Group and JCPS got together and had some workshops and invited us in with other general contractors to meet some minority- and women-owned businesses, and we were able develop some relationships prior to the bid. … We pulled up our bootstraps, and we were able to meet the goal.” In fact, Hall said the relationships forged with MWBEs met through the JCPS/7PM Group workshop have proven helpful on other jobs. “A lot of those relationships have continued on outside of our JCPS projects,” he said. “It’s turned out to be a great relationship for us and some of the other contractors.” But is this degree of project management and monitoring really needed to ensure a fair playing field for MWBE-owned businesses? Ask Frank McAffee, CEO and owner of Mechanical Systems Contractors LLC, which he started in 1998. He’ll tell you how the bid process sometimes works. It’s the under-bid then make it up on change orders game. “I would go in and bid a job at $60,000 and (a majority-owned company) … would come in at $45,000. I hadn’t missed $15,000 on a $60,000 job. — I’d think, I missed 25% of it? — I mean I’m not that inept,” McAffee said. “So after two or three of these incidents it kind of dawned on me that this is deliberate to keep me out because they can make up 25% on change orders.” After figuring out how bid processes can work as well as other runaround tactics that kept him on the sidelines of many projects, McAffee established a relationship with Schardein Mechanical, which subcontracts work to McAffee’s business. That source of work and other jobs he picks up keeps Mechanical Systems Contractors going. Though his reputation as a master HVAC technician is well known in town, Anthony said, McAffee has not had an opportunity to serve as prime HVAC contractor on a major project more than two decades in business. So what’s the answer? “Having an organization like the 7PM Group ensuring that the owners of this project and JCPS executives don’t just talk the talk but walk the walk” helps McAffee feel optimistic. “GIve us a chance to grow the businesses and show that this community is ready to move forward and be more diverse. I am looking forward to the opportunity to network and engage with some of the prime contractors that might not be aware that my company exists.” What project owners and general contractors need to do, according to Dr. Marshall, is find experts who connect them with MWBEs that can be successful contributors to projects. “A smart person finds the power source to plug into to get more information. You need to find that entity called 7PM and you need to find those experts that know this work and plug into them,” Dr. Marshall said. “Sometimes it’s not as much about having to figure it out yourself as being shown the way. What 7PM does is show you the way.” 7PM Group’s Anthony said to achieve MWBE participation goals there has to be a commitment from both the project owner, in Shawnee’s case JCPS, and the general contractor, in this case E.H. Construction. “What we have done — I call it the glue,” Anthony said. “We are the liaison between the owner (JCPS) to the general contractor to make sure that they fully understood the expectation and how the process would work, how to engage us, how we could help them. There’s a ton of accountability.” Engagement with the MWBEs on the project is also part of 7PM Group’s role, ensuring that they have the insurance, bonding, etc., to be on the job site. “We also make sure they are being paid on time in accordance with the contract,” Anthony said. That attention to detail is appreciated by subcontractors, according to Sharita Brown, owner of I AM Construction Cleaning LLC, a woman- and minority-owned company working on the Shawnee project. Brown, whose parents graduated from Shawnee, is pleased to have the opportunity to have her crews on site, doing construction cleanup that she described as a stepping stone to opportunities in other areas of the construction industry. With the Shawnee project, “doors have been opened for us to allow (team members) to learn different skills in trade industries,” Brown said. “We believe in second chances.” She also believes in extending a hand up to the next generation headed into the work force. Two of Brown’s workers at Shawnee are recent graduates of Central High Magnet Career Academy. Shareef Johnson and Deondre Howard spoke of how they appreciate the opportunity to get some real-world work experience before heading to college in the fall. Johnson will attend the University of Louisville where he intends to major in business management. Howard, a Central Yellow Jackets standout football player, is headed to Langston University in Oklahoma City, Okla., where he will play sports as he works toward a degree in engineering. The recent graduates’ experience on the Shawnee project is not only giving Johnson and Howard experience on a construction work site, they also are getting to see minority business owners proving they can do their part on a $36.4 million project. When students see firsthand that there are opportunities for them when they finish school, it helps fuel JCPS officials’ push to hire MWBEs for school system projects. That focus on MWBE participation is being driven by what Dr. Marshall calls a group of gladiators. “You have me, you have Delquan, you have 7PM — Vincel, Carl and Juan (Robinson). You put all of us in that same arena taking on the masses that either don’t understand or don’t want to do it. I believe that’s how victory and I believe that is how success comes to our community.” Dr. Marshall hopes the example is enduring and that the Shawnee project sets a template for minority participation in other major projects that occur in the Louisville area. “We wanted to be sure that Shawnee’s students and the predominantly black community around the school saw people who look like them working on the building. That’s important. That’s how we show students that there are opportunities for people of color,” he added. “It was simply the right thing to do.” Minority participation on the Shawnee project is significant beyond the construction work taking place. It has a positive impact on community pride and optimism for the future, according to Dr. Marshall. “What is a bigger statement that we are making in the historic Shawnee neighborhood and school is now the community walks by and sees people that look like us doing the work,” he said. “Now the community walks by and sees JCPS investing in a building and investing in an area of town where a lot of people are not investing. People walk by and see that this very radiant principal (Kymberly Rice) and this very radiant board member (Diane Porter) all are behind this kind of work. And guess what? They all are black. That does a lot for the morale of a community.”

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