How To Get Government Construction Contracts?

The method of locating, bidding on, and fulfilling a government construction contract differs greatly from that of private-sector construction projects. Big companies would face stiff competition from small construction firms. Competing in a "complete and open market," in which any size company may participate in the bidding process, cannot provide you with the best chance of winning.

Winning government construction contracts may be a lucrative method for business growth if your construction company is ready for steady yet demanding projects. You can be able to profit from government work even if your construction company is small. According to the Small Business Administration, the federal government paid small businesses 25% of all contract dollars in 2018, totaling $120.8 billion.

You must first learn how to win government contracts for your small business if you want a slice of the $120 billion pie for your construction company. We'll go over how government contracts can benefit your business, how the bidding process works, and how to say whether you have the right resources for government projects on hand.

What Are Government Contracts?

A government contract is an agreement that specifies commercial arrangements between corporations and government agencies in order to provide goods or services to the federal government of the United States. If your company is hired by the government, the contract will include long-term, stable jobs.

How Can You Get a Government Contract for Construction?

1. Get Organized

To begin, get organized. Register the company with the Central Contractor Registration database online. The CCR will ask you for details about your company and the services it offers. While you only need to register once, you should check and update your CCR profile if your personal information changes, or at least once a year. After that, finish the Online Representations and Certifications Application.


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2. Make Friends with the SBA

Finding government construction contracts and bidding on them can be difficult and confusing, particularly if you're just getting started. The US Small Business Administration's website contains a wealth of basic and technical knowledge, which you can study to thoroughly educate yourself and your company about bidding procedures and the plethora of rules and regulations.

The SBA also oversees the federal government's small business construction procurement services. If you qualify as a small company, your total annual revenue ranges from $14 million to $35.5 million, and you'll only be bidding on construction projects with other small businesses.

3. Come up with a Contract Location Strategy

Register for “full and open competition” notices on the Federal Opportunities website, but also take the initiative to scope out construction contract opportunities at government installations such as a military base in your region. Don't wait for the SBA or the government to give you notices of "full and open competition." Establish a contract location plan and stick to it on a daily basis instead. Conduct background research on any opportunities you come across, then contact the person in charge of construction contracts or procurement to set up a face-to-face meeting to introduce yourself and your business. Register with the Small Business Administration's Office of Government Contracting as well.

Are You Willing to Work for the Government?

Since the US government often contracts for long-term, continuous, or consecutive programs, you will need additional resources to meet your commitments. To complete the project successfully, you may need to evaluate your personnel needs or invest in updated technologies or equipment.

Take some time to evaluate the current workload and assets before bidding on government construction contracts. You can include the costs of new equipment, technology, or staff in your bid if winning the contract would necessitate them. However, you might have to pay for the contract upfront and then be reimbursed over time; this may be a surprise to your budget.

If you, as a business owner, see that you cannot handle accounting on your own, consider hiring an accountancy service for contractors to help you with it.

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