Construction Companies: Public Sector vs. Private Sector
When it comes to deciding upon working in the private or the public sector, construction companies have a lot to consider in terms of the types of contracts they are facing, the rules and regulations involved with both cases, and the inherent ease or difficulty of actually landing a good bid.
Different times call for drastic changes, and while sticking to work on private properties may have been a good idea a few years ago, more and more construction contractors are now looking to set higher goals in the public sector.
The Difference between Private and Public Projects
The main difference between a private and public construction project is that, while the former is commissioned and paid by private institutions, businesses or building owners, a public construction job is closely associated with the rules that are determined by either the federal or state government.
These are normally attributed to the Miller Act (or variations of it, as they apply to the laws governing each state in part). While there are fewer construction jobs actually found in the public sector, they are often much larger and less confusing, and the competition for the bids is usually not that fierce.
Making Your Decisions Profitable
So which option should you go with? At the beginning of the economic crisis in 2008, many business owners had to make a full U-turn regarding the way they managed their companies. The private sector was less and less reliable, and working for the government was the only way to steer clear of loss of clients and eventual bankruptcy.
Today, the market is much more balanced, as the economy continues to pick up. Private projects are continuing to grow in number, and the only thing that might keep you away from them may have to do with the unique set of rules and requirements associated with working for private individuals or businesses.
In a nutshell, public contracts are still more secure, reliable and straightforward than private projects, and, unless you’re just starting out in constructions, they can present you with the perfect opportunity to grow as a business