Contractors who have worked on
government jobs are probably familiar
with "set-asides" for minority- and
women-owned businesses. In an effort
to encourage the entry of these apparently
underrepresented groups into
the construction industry, governments
will often require that a certain
percentage of public contract work be
performed by companies controlled by
minorities and women. The use of setasides
is widespread; they have been
adopted by the federal government,
36 states, and more than 190 local
governments. In spite of a recent
Supreme Court case successfully challenging
a local set-aside ordinance,
these incentive programs are here to
stay.
Fullilove
The Supreme Court first ruled on
the constitutionality of set-asides in
1980 in Fullilove v. Klutznick. In this
case, the court upheld the Federal
Public Works