Government contracts are highly sought after—and for good reason. They often offer financial stability, long-term work, and credibility. But for many small businesses and new contractors, what starts out as a golden opportunity can turn into a tough lesson.
Take Kensly, for example.
After months of pitching and networking, he finally landed his first contract with a government agency. He was thrilled. But three months later, he was knee-deep in confusion, late payments, and client complaints.
So what went wrong?
1. He ignored the fine print.
Many contractors skim through contract clauses, assuming they’ll handle things as they go. But one overlooked clause about delivery timelines ended up causing serious penalties for Kensly.
2. He didn’t document properly.
Instead of formal emails and signed amendments, he relied on verbal conversations. When disputes arose, he had nothing to back him up.
3. His budgeting was unrealistic.
Government projects often come with hidden costs—like extra compliance steps or longer approval timelines. Kensly didn’t account for these, and his profit margin vanished.
How to Avoid These Mistakes?
- Read and understand every clause.
- Keep thorough documentation of every agreement
- Plan for contingencies in your budget.
Government contracting is not just about landing the job—it’s about delivering well and protecting your business while doing so.
Have you ever handled a government contract? What challenges did you face?
We’d love to hear your experience in the comments.
Need help navigating the world of government contracts? Reach out—we’re here to support you.