subject: Government Contracts - Healing Construction And Architectural Firms' Bottom Lines [print this page] The allure of the stimulus package has proven tempting enough for public government contracts, or Requests for Proposals (RFPs), to become an integral and steady revenue stream for the construction industry in particular.Over the period two years many private construction projects have had to be either shelved wholly or in a few cases put on hold for the time being. The starting is anyone's guess which no one can predict.
The lagging construction segment has a wide ranging impact on not only the main contractors but also on the various sub-contractors as well. The main contractors have suffered the downturn. It has also been reasonably taxing on peripheral construction industries such as architecture design firms, whose lifeblood is about symbiotic with the highs and lows of the construction sector. It was not too long ago that many industry chief architectural firms were in high demand and yet backlogged. The high demand that architectural firms had been feeling is now replaced with confusion bordering on despair as they, too, scramble to stay afloat and keep a steady project pipeline. In addition, the sales and rental of tractors and construction equipment have experienced a radical downturn in the private markets, as well as construction management and inspection.
The restrictions have put them into the demand and customizing public sector.
While most of these companies have done some public work in the past it was usually just another division in their internal infrastructure. When this spate of stimulus money finally hit the ground there appears to be more public opportunities for these companies, to chase and obtain. Now we are seeing them go after government accord work with gusto. They are who has successfully worked in the private sector.
The trickle down influence has been a massive boost for the bottom lines of both the construction companies and the architectural firms. In addition, products like tractors, cranes, and dredging equipment have seen support in various RFPs and bids released as part of the stimulus.. In a twist of irony, it could be argued that there are so many new public construction RFPs coming in daily that some feel the need exists for even more quality and seasoned companies to at least propose bids lest they are faced with an unfortunate predicament.
The good news is that one of our nation's bedrock industries has been given a new lease on life. With the need for renovations to definite areas of an aging infrastructure thrown into the mix it bodes well for future contraction and architectural firms of all sizes. In government contracts they are able to find steady and continual work that simply did not exist prior to the release of the stimulus package. This has formed a rare win-win situation that shows no signs of abating anytime soon.
