Not all construction projects are created equal. When it comes to federal work, the rules of the game are on a whole different level. Federal projects can offer long-term stability and significant opportunities, but they come with unique requirements, layers of compliance, and administrative oversight that can make or break a project before the first shovel hits the ground.

We’ve guided contractors through dozens of large-scale federal builds — from VA hospitals and data centers to secure defense facilities. Here’s what makes federal contracts different and what every team should know before stepping into this arena.

1. The FAR Rules Everything

At the heart of every federal project is the Federal Acquisition Regulation (FAR) — essentially the government’s rulebook for buying goods and services.

Unlike private projects, FAR touches almost every aspect of federal construction:

• How bids are submitted and evaluated
• What documentation and certifications are required
• How change orders, payments, and closeouts are handled

On top of that, certain agencies have additional regulations. For example, Department of Defense projects follow DFARS (Defense Federal Acquisition Regulation Supplement). Each set of rules comes with its own clauses — so attention to detail isn’t just important; it’s critical.

2. Security Isn’t Optional

Many federal construction sites are sensitive or even classified. That means personnel may need specific security clearances before work can begin.

Planning for security involves:

• Accounting for badging and clearance timelines (delays here can push start dates back)
• Maintaining ongoing compliance with access controls and tech policies
• Ensuring subcontractors meet the same standards

These measures protect federal assets — and they protect your ability to keep working on the project.

3. Documentation is Everything

If you think documentation is tedious in private construction, federal projects take it to a whole new level. The government wants to see exactly how funds are spent and every step of the project.

Expect to track:

• Daily reports, payroll, and certified wage data
• Safety audits and quality assurance testing
• Equipment, materials, and environmental controls

A clean, organized documentation trail isn’t just a requirement — it’s a shield for your business.

4. Labor Rules Require Extra Care

Federal projects bring specific labor standards that don’t always apply in the private sector, including:

• Davis-Bacon Act — ensuring prevailing wages for on-site labor
• Contract Work Hours and Safety Standards Act — regulating overtime and safety
• Small business and subcontracting plan requirements

Miss a step here, and you could risk withheld payments, lost eligibility, or even suspension from future bidding. That’s why many firms partner with specialists (like ACE) to stay compliant.

5. Change Orders Are Formal Affairs

In private construction, a scope change might happen with a quick conversation and signature. Federal work is different. Every change must pass through a Contracting Officer (CO) and follow formal approval channels.

That means:

• No verbal approvals — everything must be in writing
• Costs and impacts must be fully documented
• Delays are tracked carefully to determine responsibility

Proper documentation isn’t bureaucracy for the sake of it — it protects your bottom line.

6. Start Closeout Planning on Day One

Federal closeouts require meticulous recordkeeping: submittal logs, warranties, as-built drawings, O&M manuals, and more.

The firms that finish strong are the ones that start preparing early. A well-organized commissioning and turnover plan doesn’t just check the compliance boxes — it sets you up for future federal opportunities.

Preparation is Your Best Tool

Winning large-scale federal projects isn’t just about skill or capacity — it’s about readiness. Understanding FAR, anticipating security requirements, staying compliant, and documenting everything are the keys to turning opportunity into success.

At ACE Consulting, we help contractors plan, execute, and document with precision. From project controls and QA/QC to commissioning and security support, our goal is to make federal compliance seamless — so you can focus on building.

Federal work rewards preparation. The better you plan ahead, the smoother your path to long-term growth.