Challenges Facing Women-Owned Construction Companies
Women have made undeniable progress in the construction sector, yet it remains one of the most gender-segregated industries in the U.S. Following a decade that saw a 45% surge in women participating in the industry in some capacity, they account for only 11.2% of construction employees. And only about 13% of construction businesses are women-owned. These numbers underscore the steep climb that women-owned construction companies (WCCs) still face. But they also reveal an enormous opportunity for WCCs that overcome the systemic hurdles.
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1. Overcoming Capital Access and Bonding Limitations for Women Contractors
Securing growth capital is the single biggest obstacle challenging women entrepreneurs
across all sectors. The construction industry exacerbates this problem due to its cash-intensive mobilization costs, equipment requirements, and lengthy payment cycles. A 2024 study found that women founders are significantly less likely to obtain traditional bank financing or venture investment, limiting average firm size and revenue.
On top of that capital gap sits the bonding gap. Performance and payment bonds are mandatory on nearly every public project and many large private jobs. But surety companies often view younger, smaller contractors as higher risk, making it difficult for them to establish adequate bonding capacity, limiting their ability to bid as prime contractors.
Bonding forces contractors to tie up working capital at precisely the moment they most need liquidity for payroll and materials. Programs such as the SBA Surety Bond Guarantee (covering contracts up to $10 million) and state initiatives like DASNY’s Surety Bond Training Program in New York can soften the blow by sharing underwriting risk and teaching back-office financial management. Yet many WCCs are unaware these resources exist or lack the accounting sophistication that surety companies require, creating a vicious cycle in which limited bonding capacity prevents winning the very projects that would build financial history.
2. Culture, Bias, and the Leadership Gap
Access to capital is only half the battle: day-to-day job-site culture still drives attrition. In a 2025 survey by the National Center for Construction Education & Research, 68% of women said poor leadership and exclusionary practices were pushing them out of the field. Implicit bias shows up in unequal work assignments, lack of mentoring, and an “old boys’ club” that controls both subcontracting networks and information flow. When owners are women, those same networks often overlook them for informal bid invitations or hesitate to accept their authority as project executives, eroding productivity and morale.
3. Building a Strong Talent Pipeline for Women in Construction
While the overall number of women in construction roles has risen sharply since 2015, retaining skilled tradeswomen remains a chronic challenge: 52 percent of firms in the 2024 She Builds Nation report cited difficulty attracting and keeping female talent. Physical facilities that lack appropriate PPE sizes or restroom access, inflexible schedules that collide with caregiving responsibilities, and limited visibility of female role models all contribute to high turnover among women in construction.
4. Procurement Visibility and “Second-Tier” Traps
Public agencies—federal, state, and municipal—set spending goals for Women-Owned Small Businesses (WOSBs), yet dollars often remain concentrated among larger, established players. Many agencies satisfy quota requirements through second-tier subcontracts, which deliver lower margins and limited decision-making power to WCCs. Without experience as a prime contractor, firms struggle to build the past performance record needed for bigger awards.
5. Adapting to Evolving Construction Policies and DEI Initiatives
Federal initiatives such as the Women in Apprenticeship and Nontraditional Occupations (WANTO) grants have invested millions to widen the pipeline, while the SBA’s WOSB certification opens set-aside bid opportunities in underrepresented NAICS codes. Yet political pushback against diversity, equity, and inclusion (DEI) programs creates policy whiplash that can deter investment in training or outreach. WCCs must monitor regulatory changes and diversify their market mix—balancing public work with private clients that value inclusive supply chains—to hedge against shifting rules.
Strategic Solutions
Such challenges combine to keep women-owned construction companies (WCCs) at the margins of an industry worth more than $2 trillion a year. Fortunately, a growing ecosystem of public- and private-sector programs is beginning to chip away at those obstacles. The strategies that follow offer a practical roadmap for WCCs determined not merely to survive but to thrive.
Build Financial Muscle
Establishing strong internal controls, job-cost accounting, and cash-flow forecasting not only impresses lenders but also reassures surety companies. CDFIs and specialty lenders such as community development credit unions often provide lower-threshold working capital lines paired with technical assistance tailored to WCCs. Participation in bonding readiness boot camps offered by DOT’s Bonding Education Program or state counterparts can raise surety capacity faster than organic balance-sheet growth.
Leverage Mentoring and Joint-Venture Structures
SBA-approved mentor-protégé agreements let emerging WOSBs partner with established primes to bid on larger projects while receiving hands-on management support. Successful WCCs often layer these alliances with targeted joint ventures on marquee projects, using shared risk and resources to meet bonding and experience thresholds they could not reach alone.
Build Credibility for Prime Contracts
WCCs should pursue WOSB certification and any applicable state or local MWBE registrations, then actively market to agency procurement officers rather than waiting for second-tier invitations. Reverse trade shows, capability statements highlighting recent comparable projects, and attending pre-award meetings will help buyers view the firm as a prime contender.
Create an Inclusive Employer Brand
Flexible scheduling policies, childcare stipends, and targeted apprenticeship outreach signal a deliberate culture shift. Pairing early-career tradeswomen with female mentors and investing in leadership training combats the 68% attrition risk linked to poor supervision. Programs such as AGC’s “Culture of Care” pledge or NAWIC’s leadership academies provide frameworks for continuous improvement.
Embrace Technology to Close Credibility Gaps
Cloud-based project-management platforms and drones for site documentation can reduce overhead, improve transparency, and showcase operational sophistication—key factors that contracting officers and surety companies consider when assessing risk. Digital fluency also appeals to younger workers and can differentiate smaller WCCs from traditional competitors as employers of choice for women entering the construction job market.
Bonding Solutions for Women-Owned Construction Companies
At Surety Bond Professionals, we understand that securing bonding capacity is one of the most significant hurdles for emerging and women-owned construction businesses. Without access to performance and payment bonds, even the most capable firms can be locked out of public and large-scale private projects. We offer personalized support and access to a wide range of surety markets to help WCCs:
- Qualify for bid bonds – Establish credibility and meet prequalification requirements on public contracts.
- Secure performance bonds – Guarantee contract completion according to terms, helping owners trust your capabilities.
- Obtain payment bonds – Protect subcontractors and suppliers, which enhances competitiveness and builds trust with GCs and project owners.
Final Thoughts
The challenges confronting women-owned construction companies are interconnected. Capital shortfalls feed bonding constraints, bias limits networks, and talent gaps hamper growth. Each barrier, however, has a corresponding countermeasure—whether innovative financing, strategic partnerships, data-driven procurement outreach, or a deliberate culture of inclusion.
With a projected shortage of more than 400,000 skilled construction workers this year, the broader industry cannot afford to overlook women’s entrepreneurial potential. The firms that proactively dismantle these structural barriers today will not only build stronger businesses for themselves but help lay the foundation for a more resilient, inclusive construction sector tomorrow. Find out more in our blog on the importance of diversity and inclusion in the workplace.
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