The type of contractual setup significantly impacts project delivery, risk allocation, and control.
1. Public Projects
- Funded by government agencies, municipalities, or PSUs.
- Governed by strict procurement laws (e.g., GFR, CVC, GeM).
- Focused on transparency, accountability, and social benefit.
- Bids are typically L1-based (lowest bidder).
- Involves longer approval cycles and audit controls.
Common Forms:
- Design–Bid–Build (DBB)
- EPC (Engineering, Procurement & Construction)
- PPP (Public–Private Partnership) models
2. Private Projects
- Funded by individuals, corporations, or institutions.
- Offer more flexibility in design and procurement.
- Decision-making is faster; quality and speed are key drivers.
- Contractors are often selected based on quality, capability, and relationships.
Common Forms:
- Design–Build (Turnkey)
- Construction Management (CM) at Risk
- Cost-Plus or Guaranteed Maximum Price (GMP) models
Key Difference:
Public projects focus on compliance and fairness,
while private projects focus on efficiency and profitability.