Benefits and Costs of EEO Rules in Construction

The findings of a study designed to investigate the benefits and costs of Equal Employment Opportunity (EEO) regulations in the construction industry are presented. The data indicate that large contractors have less difficulty than smaller organizations in meeting EEO requirements. In addition, it is shown that the regulations both benefit and increase the number of minority construction workers. According to the study, however, EEO procedures have not increased the number of qualified minority craftsmen. The data also indicate that EEO regulations have increased the cost of the construction projects. The amount spent on both record keeping and low productive personnel, although significant, is not substantial. For example, the unweighted values, in terms of construction dollar volume, range from 1.05% for the Engineering News Record (ENR) 400 organizations to 2.31% for the Indiana Constructors. The weighted values range from 0.48% for the ENR 400 contractors to 1.55% for the Indiana Constructors. The great majority of firms surveyed indicated that EEO rules and regulations should be modified. Better recruiting efforts and comprehensive union and contractor programs to train competent workers appear to be a necessity.