Federal Government Construction - Show Me the Cash

in Construction

There's no query that the development industry has been hit and hit hard by the economic downturn. And I am not the only one uninterested in hearing that. Contractors, builders, and their families want one thing that shows a way out. They need hope and are trying with increasingly anxious eyes to Uncle Sam.

In response, our government has taken steps to revitalize construction, starting with last year's passage of the American Recovery and Reinvestment Act (ARRA). With $137 billion of the $787 billion package allocated for construction, there was an expectation that much of the crisis would be alleviated. Then reality hit. The apparent had been overlooked: few contractors had been trained on a way to access and bid the thousands of ARRA-funded opportunities.

As a result, many of those much-needed contracts were never awarded. And simply just like the year before, when $47 Billion of government contracts were not awarded as a result of nobody bid on them, the dearth of a step-by-step guide for contractors blunted the impact of the ARRA stimulus money.

Caught during a declining economy and without the know-how that might allow them to access government contracts, construction businesses had to, collectively contractor place it in a very recent Austin Yank-Statesman article*, "take it on the chin": cut overhead, lay off workers, and reduce profit margins. Over the past year, private work has become hyper-competitive, with dozens of builders bidding on what very little work has been available.

Federal construction contracting, on the opposite hand, is the sole section of the development business that remains well-funded and active. Those contractors that were registered and qualified to bid on federal construction comes were witness to an unprecedented level of activity and opportunity.

As an example: In September 2009, the last month of the govt.'s fiscal year, there were over 770 federal construction opportunities posted at FBO.gov, Uncle Sam's public web site for all federal purchases over $25,000. With a limited number of qualified bidders, and every one sizes and sorts of projects out there, several of the contracts had little or no competition.

"Margins on federal construction comes are at an all-time high," said Doug Reitmeyer, a veritable skilled in the federal construction trade and keynote presenter at the Construction Expo Doug has been using his experience and know-how to assist companies get the government contracts they qualify for. A review of the most recent contracts awarded with Doug's help shows that his clients were the only bidders in four out of 5 awards.

Continuing, Doug remarked, "In my 35 years of doing government contracts, there has never been a down-turn or slow-down in the federal construction market. There has continually been a gentle stream of contract opportunities returning out of Washington as a result of our government has therefore several facilities to maintain. But thanks to the fast increase in federal spending, there are method a lot of contract opportunities than there are qualified contractors to require advantage of them."

Citing a recently awarded contract in Scotia, NY for the Air National Guard as an example, Doug explained, "It absolutely was a fairly easy job and we were the only bidder. Our bid was on top of they'd budgeted for, however they needed the work completed when possible. They came back and negotiated an quantity that worked for each of us, rather than put the contract back out for rebid."

One client company, Four Star Construction, won the contract to exchange safety lifts at historic Lincoln Park, the original home of President Abraham Lincoln. Four Star was the only qualified bidder to bid. The project was fairly routine, however it did need approval drawings and special color picks to match the decor of the home. The value of further paperwork on federal contracts like this can be offset by the upper margins that are usually potential on government work.

The competition for jobs in the federal construction arena is much weaker than it ought to be given the economy as a result of most contractors simply do not grasp a way to qualify for and obtain government construction work. With President Obama's recently announced $3.eight trillion budget for the following fiscal year, this trend is certain to continue for some time.

After I asked Doug what contractors ought to do right now, he immediately replied, "Get registered and get qualified. With federal construction opportunities at an all-time high, there's no better time to add Uncle Sam as a client. Find a mentor, go to each on the market training course on the subject. Begin contacting every federal agency in your area to determine what funds they're mandated to spend."

To qualify for consideration for federal contracts, contractors 1st have to register with the government. This, like many things involving the govt, will be a challenging process. But, the rewards can be remarkable. With Uncle Sam as a consumer, and access to the flood of federal construction funds pouring out of Washington, Contractors could do a lot of than merely survive the recession; they solely would possibly flourish.

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Ernie Hicks been writing articles online for nearly 2 years now. Not only does this author specialize in construction industry ,you can also check out his latest website about: Original Art Paintings Which reviews and lists the best

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Federal Government Construction - Show Me the Cash

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This article was published on 2010/12/11