Beginner Procurement Guide
Best Construction Tenders for New Contractors
Learn about the best construction tenders for new contractors in Canada. Guide to entry-level construction contracts, bonding, and categories suitable for newcomers.
Introduction
Government construction contracting offers enormous opportunities for new contractors. Governments spend billions annually on construction, renovations, and maintenance. For contractors willing to start small, government work can be stable and profitable.
Why Government Construction?
- ✓Stable revenue from reliable government payers
- ✓Predictable payment — federal 30-day policy
- ✓Clear specifications reduce scope disputes
- ✓Varied project types for every contractor type
- ✓Repeat business potential[/Checklist
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Northern Contracting
Starting as a two-person renovation crew, Northern Contracting won a $25,000 government washroom renovation. Five years later they had 15 employees bidding contracts up to $2 million.[/Example
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Entry-Level Categories
- ✓Building maintenance and repairs ($25k-$100k)
- ✓Interior renovations
- ✓Carpentry and millwork
- ✓Roofing repairs
- ✓Concrete work (sidewalks, curbs)
- ✓Landscaping and site work
- ✓Painting and finishing
- ✓HVAC maintenance[/Checklist
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Pro Tip
Start with categories matching your existing equipment and skills. Small wins build your past performance record.
Understanding Bonding
- ✓Bid bond: 10% of bid price — guarantees you'll enter the contract
- ✓Performance bond: 50-100% of contract value — guarantees completion
- ✓Payment bond: Protects subcontractors and suppliers
- ✓General liability insurance: Required on virtually all contracts[/Checklist
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Warning
Bonding capacity is your most important constraint. Start with small unbonded contracts to build track record.[/Warning
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Pro Tip
Build your surety relationship early. Even if first contracts do not need bonds, having the relationship in place positions you for growth.
Winning Your First Contract
- ✓Start with contracts under $50,000
- ✓Target maintenance and repair over new construction
- ✓Focus on your specialty
- ✓Build relationships at industry day events
- ✓Leverage local presence
- ✓Get pre-qualified
- ✓Consider subcontracting[/Checklist
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Summary
Government construction is accessible to new contractors who start small. Focus on maintenance, repairs, and renovations. Build bonding capacity gradually. Use ContractFinder.ca to discover entry-level construction opportunities across multiple sources.
Frequently Asked Questions
Do I need bonding to start?
Not for contracts under $25k-$50k. Use these to build track record for bonding.
What is the best entry-level category?
Maintenance, repair, and renovation contracts under $100,000.
How do I get bonded?
Start with unbonded contracts, build financial track record, then approach a surety.
Can I subcontract on government projects?
Yes. Subcontracting is a lower-risk way to gain experience.
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