Public sector construction operates under different rules than private development. Contractors and consultants accustomed to private work often underestimate these differences, leading to compliance problems and strained relationships.

Procurement follows prescribed processes. Competitive bidding requirements, proposal evaluation criteria, and contract award procedures must comply with state and local regulations. Informal arrangements common in private work can create legal problems in public projects.

Prevailing wage requirements affect project costs. Davis-Bacon and state prevailing wage laws specify minimum wages for different trades. Contractors must maintain certified payroll records and may face audits to verify compliance.

DBE requirements often apply. Disadvantaged Business Enterprise goals require good faith efforts to include minority, women, and small businesses. Documentation of outreach efforts and subcontractor participation is essential.

Approval processes involve multiple stakeholders. Public projects often require approvals from boards, councils, or commissions. Decision timelines can be longer and less predictable than private projects where owners have more direct authority.