Your first public contract: what the first year really looks like

You've won. After the celebration, there's a moment of "now what?" Public contracts come with more process than most private jobs, and the first one teaches you a lot. Here's roughly what the first year looks like, and how to make it the start of a track record.

Weeks 1 to 2: award and paperwork

• The award letter or notice. Read it for deadlines: when they need your documents and when the contract starts.
• The contract. Usually the draft that came with the tender, filled in. Read it again: term, price, payment terms, insurance, termination.
• Proof of insurance. A certificate or the buyer's own form, with them as additional insured. Your broker needs a few days. See how to read the insurance clause.
• WorkSafeBC clearance. The buyer will check your account. Make sure you're in good standing.
• Vendor setup. A supplier form for the finance department, with your banking details for direct deposit, your GST number and contacts. Get this done early, or your first payment will wait.
• Bonds, if the contract requires them.

The start-up meeting

Most contracts begin with a meeting with the people you'll work with day to day. Come with:

• Your contract lead and supervisor, with phone numbers.
• Questions about access, keys, parking, site rules and who to call after hours.
• A clear understanding of how work orders, reports and invoices will be handled.

Write down everything agreed and send a short email summary afterwards. It's the most useful email you'll send all year.

Months 1 to 3: settling in

• Expect inspections. Buyers often check the work closely at the start. Fix problems quickly and without argument.
• Keep records from day one: visit logs, photos, times, materials used, incidents. They protect you if there's a dispute and make reporting easy.
• Raise issues early. If the scope doesn't match reality (a site is bigger than described, or access is impossible on the scheduled day), tell the buyer in writing, and ask how they want it handled. Don't quietly absorb it, and don't quietly skip it.

Getting paid

Public buyers pay through a process: a purchase order or contract number, an invoice in the right format, approval by the department, then payment. Federal buyers' standard is 30 days after a proper invoice and accepted work; local buyers set their own terms, often in the contract. The first payment is usually the slowest. Plan your cash for it. Getting paid on public contracts has more.

Changes and extra work

Do extra work only with written approval: a change order, an email from the authorized person, or a new purchase order. Verbal requests from site staff are a common source of unpaid invoices.

The year-one review

Many buyers review contractor performance yearly, formally or informally, and some use it to decide whether to exercise extension options. Ask for feedback before they ask you.

Turning it into the next contract

• Ask for a reference once you've delivered a few months of good work.
• Write it up for your bid library: scope, size, term, results.
• Note the end date and when it's likely to come back out. See why contracts come back.
• Look for similar buyers nearby. A school district reference helps with the next district; a city reference with the regional district next door.