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CITY OF PHILADELPHIA CRACKING DOWN ON DBE ENFORCEMENT

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Jul 1, 2013.

The fact that contractors working in the City of Philadelphia have routinely used work-arounds to get work classified as minority-owned, woman-owned, or disabled-owned is among the construction world’s worst kept secrets. One of the strategies – hiring businesses that qualify for DBE contracts and using them as a pass-through – recently came under serious scrutiny by the City. In an effort to crack down on what City officials argue is an abuse of the system, the Office of Inspector General has started to investigate more claims. It also recently identified and cited a number of prime contractors for violating the DBE rules. One contractor, William H. Betz, Inc., was the center of recent attention.

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