Skanska Civil Helps Diverse Firms Build Capacity in Los Angeles

Skanska currently has four major infrastructure projects in metropolitan Los Angeles totaling over $3.6 billion and is leveraging the projects to build greater capacity among Disadvantaged Business Enterprises and other diverse firms in the region. The continued growth of capacity in this community will be essential as the region prepares to ramp up construction to host the 2028 Olympic Games and in connection to the passage of a new national infrastructure bill.

The Los Angeles Regional Office of Skanska Civil (Skanska) is combining development programs like the Small Business Bootcamp and PLA & Workforce Diversity Townhall Series with significant project opportunities to prepare firms for growth, and then offer opportunities to apply their skills. These efforts are helping Skanska attract subcontractors to exceed goals established by clients such as Los Angeles County Metropolitan Transit Authority (LA Metro), the City of Los Angeles and Los Angeles World Airports (LAWA).

Contracts to diverse firms on the four major projects exceed $586 million so far, with work remaining to be completed. The contracts include the L.A. Metro $2 billion Westside Purple Line Extension and $1 billion Regional Connector projects; the City of Los Angeles $270 million Sixth Street Viaduct project; and the LAWA $300 million Roadway Enabling and Utility project.

Small Business Bootcamp

Skanska offered its first Small Business Bootcamp to diverse subcontractors in 2015 in preparation for the LA Metro Westside Purple Line project, another class in 2016 for the LA Metro Regional Connector project, and then a virtual session in 2020 for the LAWA Roadway Enabling and Utility project. The bootcamp is an 8-week session held one evening per week, and covers subjects like estimating, billing, project management and project labor agreements. The course is open to any small business interested in gaining information and potentially working with Skanska on a project.

One of the highlights of the course is a mock bidding component where students prepare a sample bid package and submit it for review by Skanska professionals. After the bids are evaluated, students receive a debrief of their package to understand what they did well, along with an assessment of areas where their bid package can be improved. “The students get a lot out of the mock bid session and debriefing because it gives them an opportunity to put their knowledge into practice,” Skanska Civil DBE & Outreach Manager Teresa Maxwell said.

The bootcamp is a key strategy for Skanska staff to network with potential subcontractors and get to know more about these companies. Although contracts aren’t guaranteed for participants in the program, many companies completing the program win contracts working on Skanska projects.

PLA and Workforce Diversity Town Hall Meetings

Skanska launched a series of meetings called ‘PLA and Workforce Diversity Town Hall Meetings’ to provide education and resources to small businesses related to successfully managing the requirements of working under a project labor agreement (PLA). The four major projects under construction by Skanska are covered by a PLA between the owner agencies, labor unions and all contractors working on the projects. PLAs can be challenging for small diverse firms, especially if they are unaccustomed to working with labor unions. The virtual town hall meetings have been held monthly during 2021. Maxwell said: “Our first six sessions were all about workforce recruitment and how to locate women, minority and disadvantaged workers. Our next group of sessions are covering workforce retention, so small businesses can learn ways to keep diverse workers on the job.”

Reducing Barriers through Outreach and Contracting Strategies

In addition to the educational initiatives, Skanska is using some effective strategies to help subcontractors get contracts. One strategy is considering where large subcontracts can be broken down into several smaller contracts to help businesses meet bonding requirements. In some cases, Skanska project staff evaluated the risk and determined that bonding wasn’t necessary on work items and waived the bonding requirement for subcontractors.

These strategies have helped firms increase their bonding capacity through completed bonded projects within their bonding limit and then leveraging the completed projects to encourage the bonding company to increase their bonding limit. In other cases, waiving the bonding requirement allowed firms that otherwise would be unable to work on the project to get experience working on a major infrastructure job.

Small Business Success Story

One of several success stories to come from Skanska’s efforts is Jacqueline Pruitt, president and CEO of Marvella Steel Placers. Pruitt participated in the first Small Business Bootcamp in 2015 while working as a journeyman and general foreman for another rebar company. “I learned a lot in the bootcamp; about billing, scheduling and about opportunities on the Purple Line,” she said.

Jacqueline Pruitt, President & CEO of Marvella Steel Placers, worked on the Exposition Light Rail Transit Phase 2 Design/ Build Project as an apprentice in 2015.

Pruitt also met more experienced contractors who gave encouragement and advice on starting her own business. One of those contractors, Kevin Ramsey, CEO of Alameda Construction Services, would become her mentor. “He told me to get my contractor’s license and I started working on pulling the information together to take the exam,” Pruitt said. “He was also the first person I called after I got it.”

Pruitt has maintained the relationship since the 2015 class and considers Ramsey a mentor. “He’s been in the game for quite a while now, and he knows the ins and the outs. He’s been there and he answers my calls. Any questions I have, he will take some time and we’ll go in his office, he will take out some paper and explain it all, down to stick figures if he needs to,” she said.

Marvella Steel Placers has steadily grown since 2016, largely from the opportunity to work on Skanska projects. The company is DBE certified and is currently working on the L.A. Metro Westside Purple Line Extension and Regional Connector projects. The company recently signed a contract to work on the LAWA Roadway Enabling and Utility project.

Pruitt credits the training she received from the bootcamp program and the L.A. Metro Contractor Development and Bonding Program for giving her the tools needed to succeed. “That’s where I got most of my education from, those two programs,” she said. She believes the most important factor in her growing success has been the ability to apply the tools she learned in training classes to real-life projects. “I have been able to apply the skills I learned in billing, scheduling, performing and closing out the project. Skanska has been one of the few larger contractors that is really out to help small businesses. They show a true desire to help you succeed,” she said.

Skanska USA Civil Compliance and Outreach Manager Teresa Maxwell

Skanska Senior Vice President and General Manager of the California Region James Bailey said: “At Skanska, we’re committed to adding to our company’s diverse team by subcontracting meaningful scopes of work to minority, women-owned, veteran, disadvantaged and small businesses. Teresa’s (Maxwell) local-hire programs ensure our projects are built by the people who live and play in those communities. Our team is dedicated to this effort, which you see through the collaborative work to solve some of the most challenging and complex projects in construction. I believe having diverse vendors and talent is not only a great economic and cultural benefit; it is a driving force to finding the best solutions.

Maxwell knows the support and assistance Skanska gives to DBE subcontractors helps these companies grow and expand their capacity. She is also aware that this effort is a win/win business proposition because Skanska relies on quality subcontractors to help the company complete projects and meet the requirements of its clients. “We do this because we are better together,” Maxwell said. “We need our subs to be successful. Some of them do real specialty work or have been working in these local areas for so long. We need them on our team, and they are so important. We need them to succeed.”