What is the difference between a government contract and a public works project?
Government contracts and public works projects are related, but are two different areas of government operations. Government contracts are agreements between the government and a private entity, making the private entity responsible for services or supplies to the government. These services and supplies can be anything from building a bridge, to providing food services, to supplying machines. Government contracts are regulated by the Federal Acquisition Regulation (FAR) and require a competitive bidding process and often a set of rules that must be followed. On the other hand, public works projects are construction projects funded by government money. These projects are often designed to improve infrastructure, such as building roads, bridges, and public buildings. Public works projects may also be used to provide economic development in an area. Unlike government contracts, public works projects do not require a competitive bidding process and can be funded through the government’s annual budget. To summarize, government contracts are legally binding agreements between the government and private entities for services or supplies. Public works projects are construction projects funded by government money to improve infrastructure, with no competitive bidding process required.
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