Short answer: construction companies get government contracts by registering in SAM.gov and state and local vendor portals, choosing the right construction NAICS codes, lining up bonding capacity, getting ready for prevailing wage and certified payroll, and earning certifications such as DBE, SB-PW or 8(a). Public works is one of the largest government markets — roads, schools, water systems, federal buildings — and much of it is set aside for or subcontracted to small businesses.
1. Register where public owners buy
Start with SAM.gov registration for federal work, then register with your state, counties, cities, school districts and transit agencies. In California, contractors bidding public works also need DIR public works registration before they can bid.
2. Pick construction NAICS codes
Common codes include 236220 (commercial and institutional building), 237310 (highway, street and bridge), 237110 (water and sewer lines), and the 238 specialty trade codes such as 238210 (electrical), 238220 (plumbing and HVAC) and 238910 (site preparation). Size standards for construction are measured by average annual receipts, so check your code before you claim small business status.
3. Line up bonding
Most public construction contracts require bid, performance and payment bonds, and federal construction contracts above the Miller Act threshold require performance and payment bonds by law. Talk to a surety early; your bonding capacity sets the size of the jobs you can chase. The SBA Surety Bond Guarantee program can help small contractors qualify.
4. Get ready for prevailing wage and certified payroll
Federally funded construction is subject to Davis-Bacon prevailing wages, and states such as California have their own prevailing wage laws. You must pay the correct rates and submit certified payroll records. Getting this wrong can mean withheld payments and penalties. GERC sets up certified payroll and prevailing wage compliance for contractors.
5. Earn the certifications primes look for
- DBE certification for federally funded highway, transit and airport projects.
- SB-PW (Small Business for Public Works) for California public works participation goals.
- 8(a), HUBZone, WOSB and SDVOSB for federal set-asides.
6. Find bids and team with primes
Watch SAM.gov, state DOT lettings and local agency portals, and attend pre-bid meetings — they are where primes look for subs. Many small contractors start as subcontractors on larger projects to build past performance and bonding history. See our open government bids.
7. Bid it right
Public construction bids are unforgiving: a missing bid bond, unsigned addendum acknowledgment or incomplete subcontractor list can get you rejected. Build a checklist for every bid and leave time for questions. If the deadline is close, our bid support team can prepare the package.
FAQ
Do I need a contractor license to bid government construction?
Usually yes, in the state where the work is performed and for the trade involved. Federal projects on federal land may differ, but most solicitations still require the appropriate license.
Can a small contractor compete with large firms?
Yes. Small business set-asides and subcontracting goals exist precisely so small contractors can compete. Certification and good bonding are the biggest levers.
Want a hand with this?
GERC is a woman-owned, PhD-led government contracting firm that works with small businesses nationwide. We handle SAM.gov registration, certifications like 8(a), HUBZone, WOSB, DBE and DVBE, and bid writing — bids from $1,250 when you give us a month’s notice.