NAICS 236220: Commercial and Institutional Building Construction Bidding Guide

NAICS 236220 is the primary classification code for commercial and institutional building construction in the United States. Every contractor pursuing federal, state, or municipal building projects needs this code on their SAM.gov profile. Getting it wrong means missed opportunities, rejected bids, and forfeited set-aside eligibility.

This guide breaks down exactly what NAICS 236220 covers, the current SBA size standard, how federal agencies use this code to award contracts, and where to find active 236220 opportunities. Whether you are a general contractor bidding your first federal project or expanding into institutional work, this is the definitive resource for NAICS 236220 compliance and strategy.

In This Guide:

What NAICS 236220 Covers
SBA Size Standard for 236220
How NAICS Codes Work in Federal Contracting
Related NAICS Codes Contractors Should Know
How to Find 236220 Contract Opportunities
Set-Aside Programs Under NAICS 236220
Bonding Requirements for Federal 236220 Contracts
When to Use 236220 vs. Related Codes
Common NAICS Code Mistakes Contractors Make
Winning 236220 Bids: Strategy and Preparation
Davis-Bacon and Compliance for 236220 Projects
FAQ

What NAICS 236220 Covers

NAICS 236220 classifies establishments primarily responsible for the construction of commercial and institutional buildings and related structures. The code encompasses work performed by general contractors, design-build firms, and construction managers acting as general contractors.

Commercial Building Construction

NAICS 236220 covers new construction, renovation, addition, and maintenance of:

Office buildings (single-tenant and multi-tenant)
Retail stores and shopping centers
Warehouses and distribution centers
Hotels and motels
Restaurants and food service buildings
Banks and financial institutions
Parking garages (commercial, non-residential)
Gas stations and convenience stores
Mixed-use commercial developments

Institutional Building Construction

The institutional side of 236220 includes:

Schools (K-12 and higher education facilities)
Hospitals and medical centers
Government office buildings (federal, state, municipal)
Religious buildings (churches, temples, mosques)
Courthouses and civic buildings
Libraries and museums
Community centers and recreation facilities
Fire stations and police stations
Correctional facilities
Military buildings (non-housing)

Types of Work Included

NAICS 236220 applies to the full range of building construction activity:

New construction from ground-up
Major renovations and building modernization
Additions to existing structures
Tenant improvements and build-outs
Structural alterations and seismic retrofits
Demolition and reconstruction

The key distinction: NAICS 236220 covers the general contractor or construction manager role. Specialty trade subcontractors performing electrical, plumbing, HVAC, or other individual trades fall under the 238xxx series.

SBA Size Standard for 236220

The SBA size standard determines whether your firm qualifies as a "small business" for federal contracting purposes under NAICS 236220.

Current size standard for NAICS 236220: $45 million in average annual receipts.

This means your company's average annual gross revenue over the preceding five completed fiscal years must be at or below $45 million to qualify as a small business under this code.

How Average Annual Receipts Are Calculated

The SBA uses a five-year averaging method:

Total your gross receipts for the five most recently completed fiscal years
Divide by five
If the result is $45 million or less, your firm qualifies as small

Example: A contractor with receipts of $38M, $42M, $50M, $44M, and $36M over five years averages $42M, qualifying as a small business under 236220.

Why the Size Standard Matters

Small business status under 236220 unlocks:

Set-aside contracts reserved exclusively for small businesses
Sole-source awards up to $4 million for construction
Subcontracting plan credits for large primes counting your work
Mentor-protege program eligibility with established federal contractors
Lower bonding thresholds through SBA's surety bond guarantee program

Start finding 236220 opportunities today. ConstructionBids.ai aggregates federal, state, and municipal construction bids tagged with NAICS 236220 into one searchable dashboard. Sign up free and search 236220 contracts now.

How NAICS Codes Work in Federal Contracting

NAICS codes are the backbone of federal procurement classification. Understanding how agencies use them directly impacts your ability to find and win contracts.

SAM.gov Registration

Every federal contractor must register in the System for Award Management (SAM.gov). During registration, you select NAICS codes that describe your firm's capabilities. Your selections determine which opportunities you appear qualified for.

Best practice: List every NAICS code your firm can legitimately perform. Most construction firms list five to fifteen codes covering their primary work and adjacent capabilities.

How Contracting Officers Assign NAICS Codes

When a federal agency posts a solicitation, the contracting officer assigns a single primary NAICS code. This assignment controls:

Which size standard applies for small business determination
Which set-aside programs the contract is eligible for
How the opportunity is categorized on SAM.gov search results
Which contractors receive notifications based on profile codes

Bid Filtering and Opportunity Discovery

Federal procurement portals filter opportunities by NAICS code. If 236220 is not on your SAM.gov profile, you will not appear in searches for commercial building construction contracts. Contractors who register with incomplete NAICS profiles miss relevant opportunities daily.

Challenging a NAICS Code Assignment

Contractors can challenge a contracting officer's NAICS code assignment if they believe the wrong code was selected. File a NAICS code appeal with the SBA Office of Hearings and Appeals within 10 calendar days of the solicitation's issuance. A successful challenge can change the size standard and open the contract to different competitors.

Related NAICS Codes Contractors Should Know

NAICS 236220 does not exist in isolation. Contractors working in commercial and institutional construction frequently bid across multiple related codes.

| NAICS Code | Description | Size Standard | |------------|-------------|---------------| | 236220 | Commercial and Institutional Building Construction | $45.0M | | 236210 | Industrial Building Construction | $45.0M | | 236115 | New Single-Family Housing Construction | $45.0M | | 236116 | New Multifamily Housing Construction | $45.0M | | 236118 | Residential Remodelers | $22.0M | | 237110 | Water and Sewer Line Construction | $45.0M | | 237310 | Highway, Street, and Bridge Construction | $45.0M | | 237990 | Other Heavy and Civil Engineering Construction | $45.0M | | 238210 | Electrical Contractors | $19.0M | | 238220 | Plumbing, Heating, and AC Contractors | $19.0M | | 238910 | Site Preparation Contractors | $19.0M |

Key Distinctions

236220 vs. 236210 (Industrial): Use 236210 for manufacturing plants, processing facilities, and industrial buildings designed for production. Use 236220 for commercial offices, retail, schools, and government buildings.

236220 vs. 237xxx (Heavy/Civil): The 237 series covers infrastructure like highways, bridges, water systems, and utilities. If the project is a building, use 236220. If it is infrastructure, use 237xxx.

236220 vs. 238xxx (Specialty Trades): The 238 series covers subcontractor-level work: electrical, plumbing, HVAC, concrete, steel erection. If your firm acts as the general contractor managing the full building project, use 236220. If you perform a single trade, use the appropriate 238 code.

How to Find 236220 Contract Opportunities

Active NAICS 236220 opportunities exist across federal, state, and local portals. Finding them requires monitoring multiple sources.

Federal Sources

SAM.gov Contract Opportunities: The official federal procurement portal lists all construction solicitations above $25,000. Filter by NAICS code 236220 to see active commercial and institutional building opportunities from every federal agency.

USACE Solicitations: The U.S. Army Corps of Engineers posts construction solicitations through SAM.gov and its own procurement portal. Corps projects frequently use NAICS 236220 for building construction.

GSA eBuy: The General Services Administration posts construction requirements for federal buildings, courthouses, and office facilities.

VA Construction: The Department of Veterans Affairs posts hospital construction, clinic build-outs, and medical facility renovations under 236220.

State and Municipal Sources

State departments of transportation, public works agencies, school districts, and municipal governments post 236220 opportunities on:

State procurement portals (e.g., BidNet, Periscope/BuySpeed, PlanetBids)
Agency-specific bid boards
Regional plan rooms
Local newspaper legal notices

The Aggregation Advantage

Monitoring SAM.gov, fifty state portals, and thousands of municipal sites manually is not feasible. ConstructionBids.ai aggregates construction bids from federal, state, and local sources into a single searchable platform. Filter by NAICS 236220 and receive alerts when new commercial and institutional building opportunities match your profile.

Stop searching dozens of portals. ConstructionBids.ai pulls 236220-coded opportunities from SAM.gov, state portals, and municipal bid boards into one dashboard. Start your free trial.

Set-Aside Programs Under NAICS 236220

Federal agencies set aside a significant percentage of 236220 contracts for small and disadvantaged businesses. Understanding these programs is essential for maximizing your federal pipeline.

8(a) Business Development Program

The SBA's 8(a) program supports socially and economically disadvantaged small businesses. Under 236220:

Sole-source ceiling: $4 million for construction
Competitive threshold: Contracts above $4M are competitively bid among 8(a) firms
Duration: Nine-year program with developmental and transitional stages
Eligibility: Must qualify as small under 236220 ($45M), be at least 51% owned by a socially/economically disadvantaged individual, and demonstrate potential for success

HUBZone Program

Historically Underutilized Business Zone (HUBZone) certification targets firms in economically distressed areas:

Price evaluation preference: 10% price evaluation credit on full-and-open competitions
Set-aside eligibility: Contracts can be set aside exclusively for HUBZone firms
Requirements: Principal office in a HUBZone, 35% of employees residing in HUBZones
Verification: SBA certifies HUBZone status through map-based verification

Service-Disabled Veteran-Owned Small Business (SDVOSB)

SDVOSB set-asides are available for 236220 contracts:

Sole-source ceiling: $4 million for construction
Ownership: 51% owned and controlled by one or more service-disabled veterans
Certification: Verified through the SBA's Veteran Small Business Certification program (VetCert)
Federal goal: 3% of all federal contracting dollars to SDVOSBs

Women-Owned Small Business (WOSB)

The WOSB Federal Contracting Program provides set-asides in industries where women-owned businesses are underrepresented:

Sole-source ceiling: $4 million for construction
Ownership: 51% owned and controlled by one or more women
Certification: Through SBA-approved third-party certifiers or SBA direct
EDWOSB: Economically Disadvantaged WOSBs have additional set-aside eligibility

Small Business Set-Asides (General)

Beyond specific programs, contracting officers must set aside contracts for small businesses when there is reasonable expectation that two or more small businesses will submit competitive offers. For 236220, contracts between $250,000 and $45 million are routinely set aside.

Bonding Requirements for Federal 236220 Contracts

Federal construction contracts under NAICS 236220 are subject to the Miller Act, which mandates surety bonds for all federal construction projects exceeding $150,000.

Performance Bonds

A performance bond guarantees the contractor will complete the project according to contract specifications. The bond amount equals 100% of the contract value. If the contractor defaults, the surety either completes the work or pays the government to hire a replacement.

Payment Bonds

A payment bond guarantees the contractor will pay all subcontractors, suppliers, and laborers. The bond amount equals 100% of the contract value for contracts over $5 million, with lower thresholds for smaller contracts.

Bid Bonds

Most federal 236220 solicitations require a bid bond equal to 20% of the bid amount, guaranteeing the contractor will enter into the contract if awarded. Bid bonds are typically required for any solicitation requiring performance and payment bonds.

SBA Surety Bond Guarantee Program

Small businesses that cannot obtain bonds through conventional channels can access the SBA's Surety Bond Guarantee Program:

Prior Approval Program: SBA guarantees bonds up to $9 million per contract
Preferred Surety Bond Program: Select sureties issue SBA-guaranteed bonds directly
Eligibility: Must meet SBA size standards and demonstrate competence

Bonding Capacity Strategy

Building bonding capacity is critical for 236220 contractors:

Maintain clean financial statements with strong working capital ratios
Complete projects on time and within budget to build a track record
Work with a surety agent who specializes in construction
Start with smaller bonded projects and scale gradually

When to Use 236220 vs. Related Codes

Choosing the correct NAICS code determines your competitive landscape and size standard. Misclassification creates compliance risk.

Use 236220 When:

You are the general contractor or construction manager on a commercial or institutional building project
The project involves new construction, renovation, or addition of offices, schools, hospitals, government buildings, retail, warehouses, or similar structures
Your firm is responsible for overall project coordination, not a single trade

Use 236210 When:

The project is an industrial building: manufacturing plant, processing facility, refinery structure, or production facility
The primary function of the building is industrial production, not office or institutional use

Use 237xxx When:

The project is infrastructure: highways, bridges, water treatment plants, sewer systems, power lines, or similar civil works
The work does not involve a building structure as the primary deliverable

Use 238xxx When:

Your firm performs a single specialty trade as a subcontractor
You are providing electrical, plumbing, HVAC, concrete, roofing, or other trade-specific work without general contractor responsibility

Mixed-Scope Projects

Some projects combine building construction with civil or infrastructure work. The contracting officer assigns the NAICS code based on the project's principal purpose. A new hospital with significant site work is still 236220 because the building is the primary deliverable.

Common NAICS Code Mistakes Contractors Make

NAICS code errors cost contractors opportunities and create compliance exposure. These are the mistakes federal contractors make most frequently.

1. Registering With Too Few Codes

Contractors who list only one or two NAICS codes on their SAM.gov profile miss bid notifications for adjacent work. A commercial building contractor should list 236220 and every related code they can credibly perform.

2. Using Subcontractor Codes as a GC

A general contractor who registers with only 238xxx specialty trade codes will not appear in searches for building construction projects. If you serve as the general contractor, 236220 must be on your profile.

3. Not Challenging Incorrect Code Assignments

When a contracting officer assigns the wrong NAICS code to a solicitation, the size standard shifts. Contractors who do not challenge incorrect assignments within 10 days lose the right to appeal.

4. Ignoring Size Standard Recertification

Your small business status is not permanent. As your firm grows and average annual receipts approach $45 million, you must recertify. Failing to monitor your receipts can result in size protests that disqualify your bid.

5. Listing Codes You Cannot Perform

Registering with NAICS codes outside your actual capabilities creates risk. If a contracting officer questions your experience under a specific code, you must demonstrate past performance. Inflated profiles undermine credibility.

6. Failing to Update SAM.gov Annually

SAM.gov registrations expire annually. Expired registrations prevent contract awards. Set a calendar reminder 60 days before expiration.

7. Confusing Primary and Secondary NAICS Codes

Your SAM.gov profile lists a primary NAICS code representing your principal business activity. Additional codes are secondary. Ensure 236220 is your primary code if commercial and institutional building construction generates the majority of your revenue.

Winning 236220 Bids: Strategy and Preparation

Winning federal and public 236220 contracts requires more than the lowest price. Agencies evaluate technical capability, past performance, and management approach alongside cost.

Build a Past Performance Record

Federal evaluators weigh past performance heavily. Start with smaller 236220 contracts to build a documented track record. Each completed project becomes evidence of your capability for larger awards.

Invest in Pre-Bid Site Visits

For 236220 projects, pre-bid site visits reveal conditions that affect pricing: soil conditions, access constraints, existing building conditions for renovations, and coordination challenges. Contractors who skip site visits submit less accurate bids.

Develop Estimating Precision

Commercial and institutional building construction involves complex scoping. Invest in takeoff software, maintain current labor and material cost databases, and perform detailed scope reviews. Accurate estimates produce competitive bids that still protect your margins.

Build Subcontractor Relationships

Strong subcontractor partnerships improve both pricing and execution. Pre-qualify your subcontractors, maintain a reliable network across key trades, and communicate bid requirements early.

Pursue Teaming Arrangements

If your firm lacks specific experience or bonding capacity for larger 236220 contracts, consider teaming arrangements, joint ventures, or mentor-protege relationships with established federal contractors.

Find 236220 opportunities before your competitors. ConstructionBids.ai monitors federal, state, and local portals continuously and delivers matching 236220 bids to your dashboard. Create your free account.

Davis-Bacon and Compliance for 236220 Projects

Federal construction contracts classified under NAICS 236220 trigger Davis-Bacon Act prevailing wage requirements for all projects exceeding $2,000 in value.

Prevailing Wage Obligations

Contractors on 236220 federal projects must:

Pay workers at least the prevailing wage rate for their classification
Provide fringe benefits at specified rates or pay the cash equivalent
Submit weekly certified payroll reports (WH-347 forms)
Post wage determinations at the job site
Maintain payroll records for three years

Wage Determination Classification

NAICS 236220 projects fall under the "Building Construction" wage determination type. Wage rates vary by county and trade classification. Access current determinations through SAM.gov's Wage Determinations section.

Compliance Penalties

Non-compliance with Davis-Bacon on 236220 contracts results in:

Wage restitution for underpaid workers
Contract termination for willful violations
Debarment from federal contracting for up to three years
Civil and criminal penalties for falsifying payroll records

For a deep dive into prevailing wage compliance, see our Davis-Bacon Prevailing Wage Guide.

Frequently Asked Questions

What does NAICS 236220 mean?

NAICS 236220 stands for Commercial and Institutional Building Construction. It classifies general contractors and construction managers who build offices, schools, hospitals, government buildings, retail stores, warehouses, and similar commercial or institutional structures.

What is the SBA size standard for NAICS 236220?

The current SBA size standard for NAICS 236220 is $45 million in average annual receipts calculated over five fiscal years. Firms at or below this threshold qualify as small businesses for federal set-aside contracts.

How do I register NAICS 236220 on SAM.gov?

Log into SAM.gov, navigate to your entity registration, and add 236220 under NAICS codes. Select it as your primary NAICS code if commercial and institutional building construction is your principal business activity. Allow two to four weeks for registration processing.

What is the difference between NAICS 236220 and 236210?

NAICS 236220 covers commercial and institutional buildings like offices, schools, and hospitals. NAICS 236210 covers industrial buildings like manufacturing plants, processing facilities, and production structures. The determining factor is the building's primary function.

Do I need bonding for NAICS 236220 federal contracts?

Yes. The Miller Act requires performance bonds and payment bonds for all federal construction contracts exceeding $150,000. Most 236220 solicitations also require a bid bond equal to 20% of the bid amount.

Can I use NAICS 236220 for residential construction?

No. Residential construction falls under NAICS 236115 (new single-family housing), 236116 (new multifamily housing), or 236118 (residential remodelers). Use 236220 exclusively for commercial and institutional building projects.

What set-aside programs apply to NAICS 236220?

NAICS 236220 contracts are eligible for small business set-asides, 8(a) Business Development, HUBZone, Service-Disabled Veteran-Owned Small Business (SDVOSB), and Women-Owned Small Business (WOSB) programs. Eligibility depends on your firm's certifications and size status.

How do I find active NAICS 236220 bid opportunities?

Search SAM.gov Contract Opportunities using NAICS code 236220. For broader coverage including state and municipal projects, use ConstructionBids.ai to aggregate 236220 opportunities from federal, state, and local portals in one dashboard.

Can a subcontractor use NAICS 236220?

NAICS 236220 applies to the general contractor or construction manager responsible for overall building construction. Subcontractors performing individual trades should use the appropriate 238xxx specialty trade code. A subcontractor bidding as a prime on a building project would use 236220.

How often does the SBA update the 236220 size standard?

The SBA reviews size standards every five years and adjusts for inflation and industry changes. Monitor the SBA's Office of Size Standards for proposed rule changes that could affect your eligibility under 236220.

Jessica Chen covers federal contracting compliance and procurement strategy for ConstructionBids.ai. With over a decade of experience in government construction, she helps contractors navigate NAICS classifications, set-aside programs, and federal bidding requirements.

NAICS 236220: Commercial and Institutional Building Construction Bidding Guide

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