Uploaded May 2026 | Updated September 2026, 2 weeks ago
Here's something most contractors find out the hard way: there's a dollar line in federal construction where everything changes — and if you don't know where it is, you'll either price yourself out of your first win or walk into a bonding wall you can't climb.
That line is $150,000. Under it, the rules are softer. Over it, the Miller Act kicks in and you need payment and performance bonds on the full contract value. Not 'I'll figure it out later.' Not 'my buddy says he knows a guy.' Real bonds, from a real surety, with real underwriting on YOUR balance sheet.
So when I see a new contractor chase a $227K roof replacement as their first federal job, I cringe a little. Not because the job is bad — it's a great job. But because they didn't price it knowing the bonding cost was baked in, and they didn't know the surety was going to ask for two years of reviewed financials they don't have.
Meanwhile the same contractor could've taken a $140K roof repair down the street, performed it clean, and used it as past performance to walk into the $227K job six months later with a bonding line already open.
The lesson isn't 'avoid bonded work.' The lesson is sequence. Federal contracting rewards contractors who understand the staircase — small unbonded job, then a slightly bigger one, then your first bonded job with the financials and the past performance to back it up.
Most guys skip steps because the bigger number looks better in their head. Then they win it, can't bond it, and either lose the award or scramble to find a 'bond broker' who takes a chunk of their margin to make the problem go away.
Know where the line is. Price on purpose. Build the staircase before you climb it.
Want help figuring out which step you're actually on? Book a Zoom: gcexperts.com/zoom
▶ Read the full article on Skool: skool.com/gcexperts
Want to talk through how this applies to your situation? Book a Zoom: gcexperts.com/zoom
#FederalContracting #Construction #SmallBusiness #GovernmentContracts #SAMgov #Contractors #Shorts
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DISCLAIMER: The strategies, regulations, and figures discussed in this video reflect Sean Reitmeyer's personal experience in federal contracting and are shared for informational and educational purposes only. This is not legal, financial, or business advice. Individual results vary. Viewers who have not completed the GC Experts training program are missing context that is essential to correctly applying these concepts. Nothing in this video creates a coaching, advisory, or contractual relationship. Consult qualified legal, financial, and business professionals before making any business decisions.
Here's something most contractors find out the hard way: there's a dollar line in federal construction where everything changes — and if you don't know where it is, you'll either price yourself out of your first win or walk into a bonding wall you can't climb.
That line is $150,000. Under it, the rules are softer. Over it, the Miller Act kicks in and you need payment and performance bonds on the full contract value. Not 'I'll figure it out later.' Not 'my buddy says he knows a guy.' Real bonds, from a real surety, with real underwriting on YOUR balance sheet.
So when I see a new contractor chase a $227K roof replacement as their first federal job, I cringe a little. Not because the job is bad — it's a great job. But because they didn't price it knowing the bonding cost was baked in, and they didn't know the surety was going to ask for two years of reviewed financials they don't have.
Meanwhile the same contractor could've taken a $140K roof repair down the street, performed it clean, and used it as past performance to walk into the $227K job six months later with a bonding line already open.
The lesson isn't 'avoid bonded work.' The lesson is sequence. Federal contracting rewards contractors who understand the staircase — small unbonded job, then a slightly bigger one, then your first bonded job with the financials and the past performance to back it up.
Most guys skip steps because the bigger number looks better in their head. Then they win it, can't bond it, and either lose the award or scramble to find a 'bond broker' who takes a chunk of their margin to make the problem go away.
Know where the line is. Price on purpose. Build the staircase before you climb it.
Want help figuring out which step you're actually on? Book a Zoom: gcexperts.com/zoom
▶ Read the full article on Skool: skool.com/gcexperts
Want to talk through how this applies to your situation? Book a Zoom: gcexperts.com/zoom
#FederalContracting #Construction #SmallBusiness #GovernmentContracts #SAMgov #Contractors #Shorts
⸻
DISCLAIMER: The strategies, regulations, and figures discussed in this video reflect Sean Reitmeyer's personal experience in federal contracting and are shared for informational and educational purposes only. This is not legal, financial, or business advice. Individual results vary. Viewers who have not completed the GC Experts training program are missing context that is essential to correctly applying these concepts. Nothing in this video creates a coaching, advisory, or contractual relationship. Consult qualified legal, financial, and business professionals before making any business decisions.
