Experience, reputation, and financial security often play big roles in the selection process.

​

There are different types of construction projects for bid that require different skills sets. For example:

​

• Residential construction contracts – Residential construction contractors build residential dwellings, typically multi- or single-family homes. These projects are usually owned by private enterprises and look for contractors who have a robust supply chain and steady supply of skilled labor. The housing industry is cyclical and regulated by local municipalities like cities and counties.                          

• Commercial construction contracts – Commercial construction contractors build commercial buildings, which can range from a small office building project to a skyscraper. As you can imagine, a wide variety of skillsets and specializations are needed in this area. The bidding process can be more formal, as commercial building projects may be backed by large capital investments. These projects are often driven by population and economic growth.                                    

• Government construction contracts – Government construction contractors build projects funded with public money. Roadways, buildings, and facilities owned by government municipalities, such as cities, counties, states, and even the federal government, will be subject to a bidding process for any related construction project. The bidding and award process is strictly regulated to ensure the appropriate use of public funds.                                                                    

All of these types of construction projects are vulnerable to liability and other financial loss. That is why it is important to demonstrate your technical competence and financial stability when submitting a bid.