Relationships between Government Contracts and Contractors


The government offers wide range of contracts to various companies with standard productivity qualities and with legal operational policies. For a company to obtain a contract from the company, various channels of evaluation are followed towards its approval. This paper tries to examine the kind of relationship the government establishes with contractors in accomplishing their projects.

This paper follows the scholarly writing procedure in which, research details regard to literature reviews, research findings and conclusions are included. In the literature review, the author explores different kind of information regarding the relationship between and guiding policies between government contracts and contractor. Previous sources provide an extensive information and data concerning key entities and companies that have previous engaged with government contacts. With real examples, this section helps the readers to relate and understand the background information on the topic.

Amid the study flow, the researcher explores related findings for contractors and government contracts. This section involves resources analysis and personal assessment in exploring the binding policies, advantages, disadvantages and benefit for the relationship. In the conclusion, the reader should find the summary and conclusive remark for the research by culminating the topic in narrow understanding. This is to say, in regard to the topics’ objective, the government overall provides a framework of operation in which contractors bid for government project.


Any given government has development plan for its country. These plans are instituted by various players in the government. Each sector has its own development plan including infrastructure expansion, reconstruction, and construction. This can be done at a national, district, county level or community level depending on national jurisdiction plan. These projects can be planned and instituted by the community, district or national leaders who implement government development plan. Policies makers across the nation are significantly involved in the implementation process. The government, on the other hand, has clearly formulated institutions that provide the framework for development planning and implementation. Such various institutions include engineering agencies, policy maker’s agencies, certification institutions, accreditation institutions and many more.

Contractors range from a wide spectrum of service delivery. They may be privately or publicly instituted with specific or general service delivery. The contractors, as well, form a pool of expertise and professionals who have specialized experiences and skills in specific development project. Those in private institutions have independently guided policies for their company and must provide their service in the range of the profession. The public contractor companies on the other hand, must have a close relation with the government or community. Their service delivery must work in line with the proximities of public representing the public interests.

Both the private and public contractors must have binding rule and values of operations. While signing a contract with any given institution, there is a clear formulate structure of agreement for the project completion. While working with the government, the procedure of contract entry and agreement is not different. Rule and policies of agreement must be laid at table be agreed upon. For the government contract, constitution clearly stipulates the contract agreement policies of which must be adhered to (Hoe, & Practicing Law Institute 2010). The legal laws in question must be authorized by federal government personnel fulfilling the constitutional mandate.

Literature review

The government and contractor relationship is established on the basis of underlying policies. These policies are formulated to prevent fraud or misappropriation of government fund or engagement in unsatisfactory contract projects. The federal government, for instance, provides a guideline/manual on government contracts enlisting laws, regulations, statutes, codes of contact, and directive for the basis of contract agreement. The importance of these agreement policies is to enhance a quality and continuous relationships between the contractors and government employees towards the achievement of the government development plans. The government employees must maintain ethical standards and boundaries in reach for the contractor’s values. This relationship boosts the quality of quality and achievement of the projects goals

The U.S government for instance shelled out approximately $460.6 billion lost through contractor-government agreement in 2015 (United States & Fenton, 2015). Termed as ‘grand theft’ the government took a legal step in enhancing the legal procedure towards contraction of the relationship a clear structure of rule and policies were formulated. Some of the government-contractor relationships are as follows:

First, a binding relationship between the government and the contractor must be established. They both must understand and agree on the basis of delivering the contract to the government. They both should understand that the basis of the relationship is a non-personalized relation agreed upon the representation of both parties under law. The agreement must also stipulate the employer-employee relationship and the ethical values to be observed in the process. The contract relational period will last for the duration of the project. The government agencies must come on board to elaborate the government’s policies to enhance full knowledge of agreement and the significance of the agreement.

According to Cooper, &United States (2003), the contractor personnel must understand his position in the larger government project. In his position, he should know the supervisory, evaluation and directional involvement of the government in the contract operation. Also, he should be placed in a position where government administration, command and supervision will be part of the project operation. Government contract experts such as EPA contractors association must evaluate every step of the project. The contractor’s procurement procedures and budgetary management must be supervised by the government officials.

In regard to employee relationship, the project contractor has no legal obligation to offer personal judgment and directive on the government’s behalf. The contractor must perform his tasks in limit of the agreements and act according to the contract policies and ethics. According to In Judge Advocate General’s School (United States Army), & American Bar Association (2017) contract rules, regulation and directives issue by the U.S. Environmental Protection Agency must be adhered to maintain and manage quality operational procedures.

Employee-employer benefits includes: timely contract’s budgetary allocation for the contract. The government will provide the stipulated amount for the project through the observance of the law and following the federal income tax obligations. Also, the payments through the government budgetary department is exempted from Federal Insurance Contributions Act however, the contract agreement must strictly followed to approve the step. The terms and policies of compensation must be explored pending the risk assessment and project management. Under the Social Security Act, the performance of the contractor is tide on the project management agreement and embedding risk of management. Workmanship compensation and benefits are provided for by the contractor and the government. For instance, incase a worker is injured during the project, the contractor, through government supervision, must process and implement the compensation plan.

The project supervision and monitoring is not only done by the contractor but also the government representatives. In the case of policy violation and breakage of law, the contractor through the government representative must write to government authority admitting the mess. He/she must admit the conduct of violation and element violated to confirm

The authority of contract negotiation between the contractor and government must be procedurally following the contractual bargaining arrangement. The process must be transparent to avoid fraud and dishonest acts. An official budgetary for the project must be approved by the government contracts regulation body, Treasury Board and Government Development Authority. The approval follows the contractor’s consent and understanding in provision of the law. Work Statement and a comprehensive description of employer-employee relationship is served to every party.


Causes of poor government-contractor relationship

Government and contractor relationship has often been ruined by dishonest and self-centered operations. This unethical relationship has often led to poor relationship impeding productivity and poor project management. The most common impediment between the government and the contractors is the observance of the ethical values (Williams, 2009). Most frequently, contractors often engage in activities that ruin that violate the contractual policies and ethical stand of the government. On the other, the government representatives have also been found in unethical activities such forgery and fraud or even corruption. Cautiously followed the act ruin and destroy the relationship established between the government contracts and the contractors.

A good relationship between employer and employee boost the morale for quality work and better performance environment. Factors for enhancing the good relationship include; policy agreement, good communication, adherence to ethical values and government laws and understanding of the Work Statement. The government and contractors must understand the line of agreement and the basis of involvement on the project. The project achievement will depend on both party’s active participation and coordination in related responsibilities.

Benefits of good contractor-government relationship

The binding policies between the contractors, government and Federal agencies should serve as coworkers in the project management. The contractor has high business opportunities if his performance impresses the employers. Is manner of operation and the robust relationship exhibited will enable him acquire more business opportunities not only from the government but other trustee. A good relationship is like a booster for future expansion of the contractor’s business opportunity. The government contract offers a wide range of benefits. Apart from the robust business opportunities, the government contract help the contractor explore more innovative avenues and techniques for his project. The contractor must perform an extensive research and innovation to deliver a standard quality work beyond the expectation. The innovative opportunities are provided through the government experts, international project exploration and readily available materials for learning and research.

Also, a well approved contractor’s project will serve the government with long term memory. This acts as marketing strategy for the contractors company. The company will earn more contracts locally and internationally through the recommendation of the government. The state government may approve of the company to have parastatal relationship with the government in implementing the government’s development plan

The government perspective

A good relationship between the contractor and government builds the government’s trust to its citizens. The government is obliged to providing quality infrastructural development plans that will benefit the community. The development strategies accredit the government’s credibility and trust for the governance and jurisdiction obligation. According to citizens, a performing government is one that delivers its development agenda. Since the government put more funds in development agenda, the development project must be outstanding and deliverable for the sustenance of the set objectives. Even though the government has the ability of employing the contractors, a partnership relationship is booster factor in implementing government projects. The government, through contract agreement policies, can easily implement its development project in a timely and most efficient manner.

Advantages of contractor-government relationship

Flexibility: working with government employees in deliverance of government project has always failed. The partnership with private entities ensures flexibility in project operation and management. The binding terms of operation ease the government strain and over-indulgence in certain project where the time can be utilized in other activities. Depending on the performance, the government is obliged to choosing appropriate business agencies for its projects

Resourceful: contractors are more resourceful than government workers. Performing their business obligation, contractors explore all resourceful techniques to ensure the provision of quality and standard projects. They perform to meet the standards of the employers.

Opportunistic: the contractual relationship confers an ideal business partnership for mutual benefit. The contractor benefits from a good payment and other added advantages from the government. On the other hand, the government benefits from the surety of quality and standards work and timely achievement of the project.


Government contract and contractors relationship is one like employer-employee partnership. The relationship is build by following the laid policies of agreement provide by both parties. The government contractual policies are governed by jurisdictional values instituted in the constitution following the law. They stipulate values, policies and ethical issue to follow as a basis of agreement between the two parties. Contractor might be a private of public service entity with specialized system of operation for a particular service.

A good employee-employer relationship is key booster for business operation. They both benefit mutually just like business owner and customers. A good relationship ensures timely and quality service delivery in the project achievement goals of the government. The government has legal obligation to supervise and ensure every detailed agreement for the project is adhered. A good relationship is factor for development and assurance to the community development agenda.

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