Introduction

Government construction contracts—federal, state, and municipal—represent a massive market exceeding $300 billion annually in the United States. However, public sector construction requires significantly more complex contract administration than private work due to stringent compliance requirements, transparency mandates, audit trails, prevailing wage laws, and procurement regulations.

According to the Government Accountability Office (GAO), inadequate contract management contributes to 30-40% of cost overruns on government construction projects. Modern contract management systems address this by automating compliance monitoring, centralizing documentation, tracking change orders systematically, and providing audit-ready reporting required by government agencies.

This comprehensive guide explores government contract management systems for construction, covering unique requirements of public sector work, leading software platforms, compliance features, implementation strategies, and best practices for contractors and agencies managing government construction projects.