How to get construction contracts

Where construction work comes from and how small contractors win it: private clients, general contractors, public bids, prequalification, bonding, certifications and accurate estimates.

You found a pro tip After every lost bid, ask the general contractor one question: what would have made our bid the winner? Most will tell you, and the answers are worth more than any lead list.
In shortConstruction contracts come from three main places: private owners and developers, general contractors looking for subcontractors, and public agencies that advertise bids. To win more of them, get properly licensed, insured and, where needed, bonded; prequalify with general contractors and agencies; register on public bid systems; build relationships before bids open; and submit accurate, complete estimates on time. Track your bid results and learn from every loss.

Where the work comes from

Sources of construction contracts
Source How you find it Typical requirements
Private owners and homeowners Referrals, website, reviews, local marketing License, insurance, references
Developers and property managers Relationships, past work, invitations to bid Track record, capacity, insurance
General contractors (as a subcontractor) Prequalification, plan rooms, bid invitations Prequalification forms, insurance, safety record, sometimes bonding
Local and state government Agency procurement websites, public notices Registration, bonds above set values, certified payroll on some projects
Federal government SAM.gov registration and opportunities Federal registration, bonding requirements, labor standards

Get the basics in place

Prequalify with general contractors

Most larger general contractors maintain lists of prequalified subcontractors and only invite those to bid. Prequalification forms ask about your company, licenses, insurance, safety record, financial strength, capacity and past projects. Complete them carefully and keep them current. Then introduce yourself to estimators and project managers, ask which projects are coming up and respond quickly and professionally to invitations, even when you decline.

Public bids

Government agencies advertise construction work publicly. For federal work, businesses register in SAM.gov and search for opportunities there. States, counties, cities, school districts and transit agencies run their own procurement portals. Read the requirements carefully: bid forms, deadlines, bonds, insurance, licensing and any prevailing wage or certified payroll requirements, which mean paying set wage rates and submitting weekly payroll reports on covered projects.

Federal construction contracts above a set dollar value generally require performance and payment bonds under the Miller Act, and many states have similar “little Miller Act” requirements for state projects.

Small business certifications

Certifications can open set-aside and preference programs on public projects. Federal programs administered by the SBA include 8(a) Business Development, HUBZone, Women-Owned Small Business and Service-Disabled Veteran-Owned Small Business, and many states and cities run their own disadvantaged, minority- or women-owned business programs. Check eligibility and the application process with the relevant agency; certifications take time to obtain, so start well before you need them.

Build relationships before the bid

Bid accurately

Winning a contract at the wrong price is worse than losing it. Build estimates from quantities, labor hours, materials, equipment, subcontractors, overhead, insurance, bonding costs and profit. Labor hours are where many estimates go wrong; use actual hours from past jobs rather than guesses. See our pricing method for trade jobs and our job labor cost calculator.

Subcontract terms to read carefully

Winning a subcontract is only good news if the terms are workable. Before signing, read the agreement for payment terms (including pay-when-paid or pay-if-paid clauses), retainage and when it is released, change order procedures, schedule obligations and penalties, indemnity and insurance requirements, warranty periods and dispute resolution. Ask questions and negotiate where terms are unclear or one-sided, and have an attorney review your first contracts with a new general contractor. Many disputes later in a project trace back to terms nobody read closely at the start.

Deliver so the next contract is easier

Repeat work and referrals come from finishing on time, on budget and safely, with clean paperwork. Keep accurate daily records: crew hours by job and task, deliveries, inspections and change orders. Submit pay applications with the documentation clients need. A reputation for organized, reliable delivery gets you on the shortlist for the next bid. See pre-construction meetings and our construction documents checklist.

Track your bid results

Keep a simple bid log: project, client, bid date, your price, the winning price where you can learn it, and the outcome. Over time it shows your hit rate by client and project type, where you are consistently high or low and which clients are worth bidding for. Focus your effort where you win and deliver well.

A short example (fictional)

A small concrete subcontractor relied on two general contractors for most of its work. The owner prequalified with five more contractors in the region, registered on the county and school district procurement portals and arranged bonding capacity with a surety agent. He also started recording crew hours by task on each job, which made his estimates tighter. Within a year, about a third of revenue came from new general contractors and one public school project.

How EZTime helps

Accurate bids and smooth delivery depend on knowing your labor hours. With EZTime, crews clock in at each job from the mobile app or an NFC tag, time is assigned to jobs and tasks with job and client tracking and reports show actual hours per job for estimating and pay applications. See EZTime for construction and construction compliance.

A bid tracking log

Bid tracking (fictional)
Project Client type Bid Result Reason
Office fit-out GC $84,000 Won Relationship and schedule
School repairs Public $120,000 Lost Price 6% higher than winner
Retail remodel Owner $46,500 Won Referral
Warehouse GC $210,000 Lost Bond capacity

Patterns in a log like this show where to focus. See construction estimating guide and construction profit margin.

Delivering so the next contract comes easier

General contractors remember subcontractors who show up, keep schedules and submit clean paperwork. Accurate daily logs, crew hours by job and on-time payroll reports make you easy to work with, especially on public projects with reporting requirements. See construction time tracking and pre-construction meeting guide.

Your next 90 days

  1. Confirm license, insurance and bonding capacity.
  2. Submit prequalification packages to three general contractors.
  3. Register for public bid notices in your area.
  4. Start a bid tracking log.
  5. Measure crew productivity by task to sharpen estimates.

Do not chase every bid. Focus on the project types and clients where your win rate and margins are best, and politely decline work that stretches your crews, bonding or cash flow. Saying no to the wrong job protects your ability to deliver the right ones. Keep a short list of target clients and review it every quarter.

Contract readiness check

Tick each item already in place.

0 of 6. You may struggle to win bigger work. Start with licensing, insurance and bonding.

Frequently asked questions

How do small contractors find construction contracts?

Through private clients and referrals, prequalification with general contractors and registration on public procurement portals such as SAM.gov and state and local systems.

Do I need to be bonded to get construction contracts?

Many public projects and some private ones require bonds. Work with a surety agent to establish bonding capacity.

What is prequalification?

A process in which general contractors or agencies review your company, insurance, safety, finances and experience before inviting you to bid.

What are prevailing wage projects?

Public projects that require paying set wage rates and often submitting certified payroll reports.

Do certifications help win contracts?

They can open set-aside and preference programs on public projects. Check eligibility with the SBA or state and local agencies.

How can I bid more accurately?

Use actual labor hours from past jobs, read all bid documents, list exclusions and include all costs including bonds and insurance.

Where to go next

More on this topic

Clock in from the field

EZTime’s mobile app stamps each clock-in with GPS, and approved clock-in locations flag punches made somewhere else.

Disclaimer: This guide is general information only and is not legal or procurement advice. Licensing, bonding and public contracting rules vary by agency and state. Consult the relevant agency, a surety professional or a qualified attorney.