In the current recession, private construction activity has fallen off. Meanwhile, federal stimulus money increases construction in the public sector. Public procurement may be the only game in town. Public projects often require or promote minority business participation. Minority business enterprises often lack the experience or financial strength of more traditional players. Contractors and suppliers must be creative and flexible to capture public work and increase minority participation, while minimizing the chance of default and avoiding insolvency issues. What kind of arrangements can contractors and suppliers make that will be recognized as legitimate minority participation, but still provide the security necessary for manufacturers and suppliers to supply materials at their best pricing? We will explore the role of payment bonds, joint check agreements, guarantees, assignments and escrow arrangements in public projects.