Frequently Asked Questions
Straight answers to the questions contractors ask us most about getting started and getting paid in federal construction. These are the short versions — each one links to the full guide if you want the detail.
How does a government contractor get paid?
On federal work, the government pays on a schedule set by the Prompt Payment Act — in most cases within 14 days of a proper invoice. That is the opposite of private work, where contractors routinely wait 45 to 90 days. The trick we teach is to bill 98% instead of 100%, so the check chases you rather than the other way around.
What is an SF 1413, and when do I need one?
SF 1413 is the Statement and Acknowledgment — the form a subcontractor signs to acknowledge the terms of a prime's subcontract. Item 13 is where you list your own lower-tier subcontractors, and each of those files their own 1413 up the chain, with certified payrolls at every tier. If you are subbing on a federal job, expect one in the welcome package the prime sends.
Do I need SAM.gov registration, and how do I get it?
Yes — SAM.gov is the front door to federal work. It is a one-time registration that gives you your UEI and lets you bid. Most of the pain is the system, not you; once you are registered, you are in. And remember federal work is public: any contract you win shows up on usaspending.gov for anyone to verify.
What is a UEI number, and do I need one?
UEI stands for Unique Entity Identifier — the 12-character code that identifies your business to the federal government, one code for your whole entity. It replaced the old DUNS number and is issued free by SAM.gov when you register: no middleman, no annual fee, just your legal name and tax ID.
What does a prime contractor actually want from a subcontractor?
The paperwork done right, on time. A prime's real question is not whether you can do the work — it is whether you will file the SF 1413, the certified payroll and the daily report correctly every week, because on a federal job the prime is responsible for the whole chain's compliance. Come in already knowing the forms and you are the sub they want.
What small-business certifications should I consider?
The two that open the most doors are 8(a) and WOSB. 8(a) is the SBA's nine-year development program for disadvantaged-owned businesses — it unlocks sole-source awards and set-asides other companies cannot bid. WOSB certifies that a woman owns and controls at least 51% of the company. Certification is what counts; the government checks, so do not just claim it.
What is Davis-Bacon, and does it apply to my job?
On federal construction, Davis-Bacon means the government sets the minimum wage for each trade — carpenter, electrician, laborer — in the wage determination attached to the solicitation, and you cannot pay less even if someone would work for less. The rates are usually at or above union scale. Read them before you bid, not after.
What is a government estimate, and how is it different from a private bid?
Before the government puts a job out to bid, it builds that job once on paper and decides what it thinks the work is worth, line by line. That is the government estimate, and your bid is judged against it: too far over and you are non-competitive, too far under and you look like you missed something. It is the anchor for the whole pricing conversation.
What is certified payroll, and when does a sub file it?
On a federal construction job you tell the government exactly how you paid every worker, every week, on a form you sign under oath. It lists each worker's classification, hours, rate, gross pay and deductions. Your subcontractors file theirs through you, because the prime is responsible for the entire chain.
How do I get my first federal contract as a small business?
Start small. The $25,000 to $100,000 jobs carry huge margins and almost no competition, because the big players cannot be bothered — and every one you finish becomes public, recent past performance, which is the currency of the federal market. String together 30 or 40 a year and you have a real federal track record.