DBE Violations Can Be Costly—A lesson in what not to do.
The federal government takes very seriously the Disadvantaged Business Enterprise (DBE) regulations. When a contractor hires a DBE, the DBE must do the work with minimal involvement or control by the general contractor. A Chicago based contractor, James McHugh Construction, decided to ignore the regulations and hired a DBE that it could control and used them as pass-throughs in order to obtain over $156 million in projects. McHugh won the [...]