The SBA has published an interim final rule which increase in size standards for nine major categories of construction. SBA size standards define the maximum size a firm can be and still be considered a small business. The new standards are shown in the table below.
While the increases in the size standards are not dramatic, they could make a difference for construction companies on the verge of graduating; those that have recently graduated; and those that want to submit offers as a small business.
The interim rule is effective July 14, 2014, and can be found at: http://www.gpo.gov/fdsys/pkg/FR-2014-06-12/pdf/2014-12868.pdf.
NAICS Code |
NAICS U.S. Industry Title |
Old Standard |
New Standard |
238210 |
Electrical Contractors and Other Wiring Installation Contractors |
$14 million |
$15 million |
237130 |
Power and Communication Line and Related Structures Construction |
$33.5 million |
$36.5 million |
236210 |
Industrial Building Construction |
$33.5 million |
$36.5 million |
236220 |
Commercial and Institutional Building Construction |
$33.5 million |
$36.5 million |
237110 |
Water and Sewer Line and Related Structures Construction |
$33.5 million |
$36.5 million |
237120 |
Oil and Gas Pipeline and Related Structures Construction |
$33.5 million |
$36.5 million |
237210 |
Land Subdivision |
$25.5 million |
$27.5 million |
237310 |
Highway, Street, and Bridge Construction |
$33.5 million |
$36.5 million |
237990 |
Other Heavy and Civil Engineering Construction |
$33.5 million |
$36.5 million |
237990 |
Dredging and Surface Cleanup Activities |
$25.5 million |
$27.5 million |
Subsector 238 |
Specialty Trade Contractors |
$14 million |
$15 million |
The new size standards will govern what contractors can certify as small businesses when they bid on or submit a proposal for projects on or after July 14, 2014, or seek certification, after that date, through the SBA for the 8(a), HUBZone or woman-owned small business programs or seek verification through the Department of Veterans Affairs for the Veteran Owned or Service-Disabled Veteran Owned small business programs.
Contractors at or near the size standard should take this opportunity to conduct a review of their last three fiscal years’ tax returns to determine their average annual receipts.
