🏛️ How to Qualify for Government Construction Contracts
🧱 Introduction
Government construction contracts can be some of the most stable and lucrative opportunities in the industry. From city infrastructure upgrades to federal facility improvements, these projects often guarantee payment, long-term work, and professional credibility.
But before you can win a government bid, your business must complete several key steps — from registration to bonding and compliance verification.
At Nail & Hammer Construction Corp, we’ve worked with public and private clients alike. Here’s what every contractor should know about qualifying for government construction work in Los Angeles and beyond.
📝 Step 1: Register as a Government Contractor
Before you can bid on any federal or state project, you must register your business through official government systems.
1️⃣ Obtain a Unique Entity ID (UEI)
As of 2022, the DUNS number has been replaced by the Unique Entity ID (UEI) — issued directly through SAM.gov.
Go to SAM.gov → Get Started → Register Entity.
You’ll be assigned a 12-character UEI for your business.
2️⃣ Register on SAM.gov
The System for Award Management (SAM) is the federal government’s main database for contractors.
Complete your profile with business details, NAICS codes, and banking info.
Renewal is required annually.
Registration is free — beware of third-party services that charge unnecessary fees.
3️⃣ Add Your NAICS and PSC Codes
These codes classify your company’s type of work:
NAICS (North American Industry Classification System): For construction, examples include:
236115 – New Single-Family Housing Construction
236220 – Commercial and Institutional Building Construction
PSC (Product Service Code): Further defines the type of service provided.
💡 Pro Tip: Use the Small Business Administration (SBA) resources to determine if you qualify for small business, veteran-owned, minority-owned, or HUBZone certifications — all of which give bidding advantages.
💰 Step 2: Understand Bid Bonds and Performance Bonds
Government agencies require bonding to ensure financial accountability and project completion.
🔹 Bid Bonds
A bid bond guarantees that if your company wins the bid, you’ll sign the contract and provide the required performance bond.
Typically covers 5–10% of the bid value.
Required by most public agencies (federal, state, and city).
🔹 Performance Bonds
Once awarded, a performance bond guarantees that the contractor will complete the project according to specifications.
Usually covers 100% of the contract value.
Protects the government from contractor default or non-performance.
🔹 Payment Bonds
In addition, most contracts require a payment bond to ensure all subcontractors and suppliers are paid — preventing liens on public property.
💡 Pro Tip: Establish a relationship with a bonding company early. Most sureties will want to review your financials, work history, and credit before issuing bonds.
🏗️ Step 3: Understand Local and Federal Opportunities
Different agencies manage construction projects at various levels. Knowing where to look can uncover major opportunities.
🏙️ City and County Projects
Los Angeles Bureau of Engineering posts bids for infrastructure and municipal work.
Los Angeles Unified School District (LAUSD) manages school modernization and facility contracts.
Los Angeles County Public Works handles roads, water, and flood control projects.
Visit each agency’s website and register in their vendor portal to receive bid alerts.
🇺🇸 Federal Opportunities
SAM.gov Contract Opportunities: The primary database for all federal contracts.
FedBizOpps (now integrated with SAM.gov): Lists opportunities across defense, energy, and transportation sectors.
GSA (General Services Administration): For building maintenance, office renovations, and long-term federal facility projects.
🏗️ State-Level Projects
California Department of General Services (DGS)
Caltrans for highway and bridge projects.
CSU/UC Systems for educational facility improvements.
📊 Step 4: Maintain Compliance and Readiness
Once qualified, staying compliant keeps you eligible for future bids.
Key Ongoing Requirements:
Renew SAM.gov registration annually.
Maintain active bonding capacity and insurance.
Track prevailing wage requirements (Davis-Bacon Act and California Labor Code).
Keep your safety records and OSHA certifications up to date.
Submit certified payroll reports for public works projects.
💡 Pro Tip: Nail & Hammer assists partners and subcontractors with compliance tracking — ensuring all documentation, safety, and wage reports meet agency standards.
🧰 Nail & Hammer’s Experience in Public Works
As a trusted Los Angeles contractor, Nail & Hammer Construction Corp upholds the highest standards of safety, compliance, and craftsmanship.
We collaborate with developers, municipalities, and private owners to manage:
Public works and government-funded projects
Tenant improvements in public facilities
Infrastructure and ADA upgrades
School, community, and municipal construction
Our team handles everything from prequalification and bonding assistance to permit coordination and quality control, making us a reliable partner for government construction.
✅ Conclusion
Qualifying for government construction contracts opens the door to steady, reputable work — but success requires preparation, compliance, and credibility.
By registering your business, securing proper bonds, and actively seeking opportunities through local and federal databases, you can position your company for growth in the public sector.
At Nail & Hammer Construction Corp, we help businesses and partners navigate this process — from bidding strategy to full project execution.
📞 Call 424-800-3704 today to discuss collaboration or prequalification support for upcoming public projects.
