Do I need to pay prevailing wages on government construction jobs?

On federal construction contracts over $2,000, the Davis-Bacon Act requires paying at least the local prevailing wages and fringe benefits set by the Department of Labor. Many states and federally funded local projects have their own prevailing wage rules too.

When do I need a bond for a federal construction contract?

Under the Miller Act, federal construction contracts over $150,000 require performance and payment bonds. Contracts over $35,000 up to $150,000 require at least two payment protections, such as a payment bond or an irrevocable letter of credit.

What is job order contracting (JOC)?

JOC is a way for agencies to award many small repair and renovation projects under one competitively awarded contract, priced from a catalog of construction tasks. Cooperatives such as Sourcewell and TIPS offer JOC contracts that public agencies can use.

Does Build America, Buy America apply to my project?

BABA applies to infrastructure projects funded with federal financial assistance, such as grants to states, local governments and tribes. It requires US-made iron, steel, manufactured products and construction materials unless a waiver is granted.

How long does it take to sell construction services to government?

It depends on the size of the purchase and how it's bought. Small purchases under an agency's threshold, or buys through an existing cooperative contract, can move quickly. Purchases that need a formal bid or a new budget line usually take longer, often a full budget cycle.

Can KSG help us sell construction services to government?

Yes. Kensington Sales Group provides outsourced SDRs who research target agencies, reach the right program owners and purchasing contacts, and book qualified meetings for your sales team. Book a 30-minute call to talk it through.

Selling Construction Services to Government: A Guide

Key takeaways

US public construction spending was $532.7 billion at a seasonally adjusted annual rate in April 2026.
Common ways agencies buy construction services: GSA MAS SIN 561210FAC Facilities Maintenance and Management, GSA MAS SIN 238160 Roofing Products and Services Solutions, GSA MAS SIN 238910 Installation and Site Preparation Services.
Rules to plan for: Davis-Bacon Act, Miller Act bonding (FAR 28.102-1), Build America, Buy America (BABA).
A contract vehicle or vendor registration makes buying easier, but it doesn't create demand. The vendors that win reach program owners before budgets and bids are set.

Who buys construction services in government

Purchases of construction services happen across federal agencies, states, counties, cities, school districts and colleges, hospitals, tribal governments, special districts and public utilities. The people you'll deal with usually include:

Federal agency facilities and real property offices (e.g., GSA Public Buildings Service, Army Corps of Engineers)
State departments of transportation and public works
City and county public works directors and capital projects managers
School district facilities directors and bond program managers
University facilities and capital planning offices
Water, sewer and other special district engineers and general managers
Procurement officers and contracting officers who run bids and JOC programs

The purchasing office runs the process, but the program owner who has the problem usually decides what gets bought. Reach both. See government buyer roles for how they work together.

The government construction services market

US public construction spending was $532.7 billion at a seasonally adjusted annual rate in April 2026. (US Census Bureau, Construction Spending (C30) current release)
Within public construction in April 2026, highway construction ran at $149.6 billion and educational construction at $113.7 billion (seasonally adjusted annual rates). (US Census Bureau, Construction Spending (C30) current release)

How agencies buy construction services

Small purchases under an agency's threshold can often be made with a quote or a purchase card. Larger purchases need a formal bid or an existing contract. These are the contract vehicles agencies commonly use for construction services:

Contract vehicle	What it is
GSA MAS SIN 561210FAC Facilities Maintenance and Management	Federal schedule SIN for facilities maintenance and management work on federal buildings.
GSA MAS SIN 238160 Roofing Products and Services Solutions	Federal schedule SIN for roofing products and roofing services.
GSA MAS SIN 238910 Installation and Site Preparation Services	Federal schedule SIN for installation and site preparation services.
GSA MAS SIN 332312 Temporary and Permanent Structures	Federal schedule SIN for temporary and permanent structures.
Sourcewell 010626-GGI (Gordian) JOC/IDIQ program services	Cooperative contract for building job order contracting (JOC) and IDIQ construction programs, with local construction task catalogs; matures 2/4/2030.
TIPS Job Order Contracting (JOC) contracts	TIPS cooperative awards JOC contracts to contractors (e.g., contract 241001) that member agencies can use for repair and renovation work.

Thresholds differ by state and agency; see our state procurement thresholds. For which cooperatives cover which categories, see cooperative contracts by category.

Rules and requirements for selling construction services

Requirement	What it means for you
Davis-Bacon Act	On federal contracts over $2,000 to build, alter or repair public buildings or works, you must pay laborers and mechanics at least the local prevailing wages and fringe benefits set by the Department of Labor.
Miller Act bonding (FAR 28.102-1)	Federal construction contracts over $150,000 require performance and payment bonds, and contracts over $35,000 up to $150,000 require at least two payment protections (such as a payment bond or letter of credit) before work starts; most states have similar 'little Miller Act' bonding laws for state and local jobs.
Build America, Buy America (BABA)	Infrastructure projects paid for with federal financial assistance must use iron, steel, manufactured products and construction materials made in the US unless a waiver applies, so contractors and suppliers must keep domestic-content certifications.
E-Verify (FAR Subpart 22.18)	Federal contracts with the E-Verify clause require you to enroll in E-Verify, check employees assigned to the contract, and flow the rule down to construction subcontracts.

Requirements vary by agency and contract. Read each solicitation's terms, and check with the buyer when in doubt. This isn't legal advice.

Buying signals to watch

These events often mean an agency will buy construction services soon:

A voter-approved school or municipal bond measure, or a new capital improvement plan
A federal infrastructure grant award to a city, state DOT or water district
A facilities condition assessment that lists deferred maintenance
An agency starting or renewing a job order contracting (JOC) program
Pre-solicitation notices or industry days posted on SAM.gov or a state bid portal

For more, see our guide to government buying signals and the contract expirations guide.

A sales process for selling construction services

Register. Get into SAM.gov for federal work and each state or local vendor portal you'll sell into. Use our vendor registration checklist.
Pick your path to purchase. Decide which contract vehicles above fit your target buyers, and whether a reseller or partner already holds one.
Build the target list. Identify the agencies with the need, the budget and the buying authority, and the people who own the problem.
Start conversations early. Reach program owners while budgets and requirements are still being written, not after an RFP is posted.
Follow through to purchase. Help the buyer pick the method, whether a cooperative purchase, quote or formal bid. When a bid comes, use our RFP response guide.

How KSG helps you sell construction services

Kensington Sales Group runs outbound sales development for companies selling to the public sector. Our SDRs research your target agencies, find the program owners and purchasing contacts, and book meetings for your sales team across Federal, SLED, K-12 and higher ed, healthcare, tribal, special district and utility markets. We also run bilingual English and Spanish outreach across the Western Hemisphere.

See how our outsourced SDR service works.

Sources

Checked November 2, 2026.

Selling construction services to government.