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Negotiating Government Construction Contracts - Tips

If you’re a contractor getting ready to oversee a government construction project, you might be wondering how to negotiate the best contract for your company and employees. Negotiating government construction contracts can be a difficult process. However, it is necessary if you’re trying to get the most amount of money for your project and team. In this post, we will provide a brief overview of the important considerations to make when negotiating a government construction contract.

Know the Cost of Materials

The prices of materials like steel, lumber, and copper can fluctuate dramatically from month to month. That is why it is important to take their prices into account when negotiating a government contract. If the bid you’re given by the government barely covers the costs of the materials necessary to complete the project, then this will need to be addressed during the negotiation process. Having a detailed understanding of the current price of materials can give you extraordinary leverage when negotiating for more money for your project, especially if the current bid is sufficient to cover the costs of rising material prices.

Know Your State and Local Regulations

Knowing the specific construction laws in your jurisdiction can save you a lot of time and energy when negotiating with a government construction contract. When looking over any government contract, it is important to know if you’re being undercut in the bid you receive if the amount isn’t high enough to cover the liability and worker’s compensation insurance necessary to conduct the project cost-effectively.

Knowing what insurance requirements apply in your local jurisdiction can offer you the ability to negotiate a higher payment in the situation that your bid comes out too low to cover the cost of insuring your workers.

Consult an Attorney

Government negotiations can be complex and will require a lot of in-depth legal knowledge to fully understand the contract. This is when a qualified attorney can help. A legal professional with knowledge of government construction contracts can assist you in uncovering any inefficiencies in the contract, in addition to helping you better understand any complex or unclear language in the contract. Using their expertise can help you have a better overall understanding of what’s in the contract, and they can offer you detailed advice on what to do to negotiate a higher payment for your services.


Having gone over three basic tips on how to negotiate government construction contracts, it has become clear that negotiating a government contract is not a simple process. However, if you go into it knowing about your state and local laws, in addition to having an understanding of the costs of materials, you will already be in a strong position to negotiate for the money you deserve.

Consulting a local attorney who has experience is also highly recommended when working with complex government contracts. Getting a government contract can be an excellent opportunity for your business, but it is important to know what you’re getting into before signing a contract that isn’t beneficial for all the parties involved. Nationwide Notice specializes in helping your company collect your receivables on your own terms. Whether you need to pay general contractors, lien releases, change order forms, or any type of construction payments, we can help you with all of it. Learn more about us here or contact us today for more information. Check out all of the services that Nationwide Notice offers here to learn how to resolve your collection problems or improve your collection effectiveness.

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