How to Get Government Contracts

Part 2
back to part 1

Is Your Business Ready For Government Contracts?

To succeed with government contracts, first make sure that your business is solid enough to complete the job term. If your business is in financial trouble, a government contract isn't going to save you.

In fact, if you can't fulfill its requirements (which include sustaining your business throughout the contract term), it could put you out of business. Be sure that you enough capital and the right people and resources to do the job before committing to it.

Also, the government does not typically finance contracts before the work is performed. You may be able to receive incremental payments if the contract's value and duration are substantial enough. But there must be a good reason, not just the fact that you need money to stay in business.


FIND GOVERNMENT CONTRACTS IN YOUR AREA!
Try these searches:

  • "RFP yourspecialty yourarea" (don't use quote marks)
    For example, enter into the search box:
    RFP administrative Chicago
    But type in YOUR specialty and YOUR city/region/state
  • "request for proposal yourspecialty yourarea"
  • "government contracts yourspecialty yourarea"
Google
 
Web www.ByMichaelRiley.com

Landing a government contract probably won't result in a windfall of revenue for your business, but it certainly can create a steady stream of timely payments, which allows you to meet costs and continue operating your business throughout the contract term. But be prepared to deliver on a strict schedule and to pay your help without delay or the contract could be jeopardized.

Since public projects involve paying the current prevailing wage, labor costs are considerably higher than the industry average. The norm is usually based on the highest union pay scales. A business bidding a public works job has to be able to carry those costs for several weeks prior to receiving payment from the government.

Colvin stresses the importance of proper capitalization and paperwork filing. "You have to consider your payment schedule: the labor dollars you'll have to front during the project and your materials cost. To get paid, you'll have to make sure that you've correctly filled out all of the paperwork, submitted it on time, and gone through proper channels."

Make sure that you get all of the information in advance so that you won't be caught flat-footed after starting the job.



Next:  Government RFPs and Bidding

Also see:  Getting Government Contracts - The 5 Basic Steps




HOME


© Copyright 2008 Michael Riley. All rights reserved.