What is the public works contract?

A public works contract, that is, what many people call a public construction contract, is basically that legal role that the government and some private company sign up to raise something that the community needs. We talk about everything: from bridges that should really endure more than one storm, to hospitals, schools, highlights full of potholes (hopefully not), water systems, and even the typical government building that nobody knows what it is for.

Now, it is not that anyone can raise your hand and say "I do." These contracts are tied to super strict rules - pure and hard bureaucracy, with their public procurement laws and the entire roll. You have to go through a bidding process, which is basically a competition: several companies present their proposals and, in theory, the best wins (or the least bad, let's be honest). The idea is that there is transparency and do not give it to anyone's brother -in -law ... although well, reality is sometimes another story.

The contract itself is well detailed, almost scratching in the paranoid. Define until the last screw: what is going to be done, how much it will cost, limits dates (which are almost never fulfilled, right?), Minimum quality, and what happens if someone puts the leg. Everything is there, including the famous penalties. If you do not comply, prepare for the edge of ears ... or worse, lose money.

If you are one of the brave who wants to enter a public tender, you better read the contract well. Better yet, look for a lawyer and an engineer who knows the subject, because there is a small letter everywhere and the requirements can be heavy. It is not a matter of launching crazy.

Another thing: the government normally asks for compliance guarantees. That is, a kind of insurance so that you do not run with the money. It can be a bond, a letter of credit, or release a good cash ticket. Without that, or dream of the contract.

In short, these public works contracts are a complicated animal. For private companies, they can be a gold mine (or a headache, it depends on how you go). If you get well, you level up and make a name. If not ... well, get ready to fight with bureaucracy and lawyers. My advice? Find out well and do not underestimate the paperwork. In this game, the one who does not read.