Government Contracting: A Comprehensive Guide
There are many different facets and avenues you can take in the construction industry. From residential to industrial to commercial, the possibilities are endless. One of the lesser-known construction avenues you can take is to get into government contracting. While the overall construction process is similar, the process of doing a government contracting job is unique and can be intimidating.
The Beginning Stages
The first phase of any government contracting job is the bidding stage. During this process, the government will post a job, either on their website or on a public one, advertising that they have a construction project.
From there, different construction companies who are licensed in commercial and government contracting will bid for the job. To do this, they propose why they’re qualified for the job in question. They will also offer a quote saying how much they’ll charge and how quickly the project will be completed.
The government entity in question will then compare all the qualifying quotes and proposals and choose the best one.
Is Bidding Always Public?
While some Carlsbad government contracting projects are public for all to see, others are private and only open to select companies. The exact parameters will vary from job to job and company to company. However, you’ll certainly have a leg up the more government contracting jobs you perform.
The Various Bonds Involved
In addition to bidding on a project, there are also bonds involved with government contracting projects.
- Bid Bond
A bid bond is enacted to ensure that contractors don’t back out of a project if they have the winning bid.
- Performance Bond
A performance bond ensures the owner that the contractor will fulfill the terms of the contract. If they fail to do so, another contractor will finish the job.
- Payment Bond
A payment bond ensures the government that the contractor has the funds necessary to pay for the initial materials, labor, and additional costs. This is to avoid a situation where a contractor is overstretched and short on funds.
Payment and Closeout
Finally, contractors working on government contracting jobs are required to pay their employees prevailing wages. The work must also pass a final government inspection at the conclusion of the job.
Government Contracting in Carlsbad, NM
Because of the many steps and rules involved with government contracting, it’s important to choose a construction company with experience in the industry. Call Constructors Inc. at (575) 885-8838 if you want to enlist the services of a construction company with ample experience in the government contracting construction sector.