Good Faith Effort Reports: What They Are and Why They Matter

Defined, good faith efforts can be described as goal-setting efforts to prevent discrimination in the bidding and hiring process. One critical tool in proving those goals are met is the Good Faith Effort (GFE) report.

What Is a Good Faith Effort Report?

A Good Faith Effort report is a documented record showing the actions a general contractor has taken to include and engage certified small, minority-owned, women-owned, disadvantaged, or veteran-owned businesses in the bid invitation process. It’s required by many government agencies and some private owners to ensure that general contractors are making a genuine effort to meet participation goals. The Good Faith Effort report is not about the results but the effort.

Why GFE Reports Matter in Construction

1. Compliance with Project Requirements. Many government funded or large institutional projects have specific diversity participation goals. Submitting a GFE report shows that your team made a legitimate attempt to meet those goals, even if you didn’t hit the participation target. This can keep your bid compliant and your company in good standing for future opportunities.
2. Demonstrates Transparency and Inclusion. Owners and agencies want to see that general contractors are opening opportunities to a diverse pool of subcontractors. Your company's dedication to supplier diversity, fair competition, and inclusive policies is reflected in a strong GFE report.
3. Can Be a Deciding Factor in Awarding a Project. Your bid may succeed or fail based on the quality of your GFE report if participation efforts have not been reached. A well-documented effort frequently carries weight in award decisions, particularly when the values of several bids are close.
4. Mitigates Risk of Bid Challenges or Rejection. Your GFE report serves as your defense whenever an agency or competitor challenges your dedication to achieving participation targets. Your case will be stronger if it is more organized and clear.

What Should Be Included in a GFE Report?

Requirements vary by agency; however, a GFE report typically includes:

• A list of certified subcontractors solicited, including dates and methods of contact
• Copies of outreach efforts: emails, bid invitations, phone logs, faxes, etc.
• Follow-up communication records
• A description of the scope of work offered to each subcontractor

How PreconSuite Helps with Good Faith Effort Reporting

At PreconSuite, we understand that building a strong GFE report shouldn't slow down your bidding process. Our software streamlines outreach tracking, email logs, and subcontractor engagement all of which can be exported into a ready-to-submit Good Faith Effort report.

Good Faith Effort reports can be created with the click of a button which saves your team hours of manual documentation while still producing a detailed GFE report.

In Summary

Good Faith Effort reports are a reflection of your company’s values, commitment to fairness, and attention to compliance. With the right system in place, meeting these requirements doesn’t have to be a burden.

PreconSuite helps you stay competitive, compliant, and credible without adding extra admin time to your bid process.

Schedule some time to discuss how PreconSuite can help your company stay compliant.