Commercial and Institutional Building Construction
Size Standard: $45 million
NAICS code 236220 covers Commercial and Institutional Building Construction, one of the largest and most competitive categories in government construction contracting. This industry includes establishments responsible for the construction of commercial and institutional buildings, including new work, additions, alterations, maintenance, and repairs. These establishments act as general contractors, assuming responsibility for the entire project.
Government agencies at all levels award billions annually for construction of office buildings, courthouses, medical facilities, schools, prisons, and other institutional structures. The General Services Administration (GSA), U.S. Army Corps of Engineers (USACE), and Naval Facilities Engineering Command (NAVFAC) are among the largest buyers of commercial building construction services.
Contractors under NAICS 236220 must understand Davis-Bacon Act prevailing wage requirements, which apply to federal construction projects exceeding $2,000. Bonding requirements are substantial—most federal projects require bid bonds, performance bonds, and payment bonds. Small businesses can compete through set-aside programs, but must demonstrate capacity for bonding and experience with similar projects.
The construction industry has seen increased emphasis on sustainable building practices, with many federal projects requiring LEED certification or compliance with the Guiding Principles for Sustainable Federal Buildings. Experience with these requirements provides competitive advantage.
- U.S. Army Corps of Engineers (USACE)
- General Services Administration (GSA)
- Naval Facilities Engineering Command (NAVFAC)
- Department of Veterans Affairs (VA)
- Department of Justice (DOJ)
- Federal Office Building Construction
- Medical Facility Construction
- Courthouse Construction and Renovation
- Federal Prison Construction
- Military Administrative Building Construction
These certifications can help you compete for set-aside contracts under NAICS 236220:
What is NAICS code 236220 used for in government contracting?
NAICS code 236220 covers Commercial and Institutional Building Construction, used for constructing federal office buildings, medical facilities, courthouses, prisons, and other institutional structures. This is one of the largest construction categories in federal procurement.
What is the size standard for NAICS 236220?
The SBA size standard for NAICS 236220 is $45 million in average annual receipts. This relatively high threshold reflects the capital-intensive nature of commercial building construction.
What are Davis-Bacon requirements for NAICS 236220 contracts?
Federal construction contracts over $2,000 require contractors to pay prevailing wages under the Davis-Bacon Act. Contractors must submit weekly certified payroll reports and post wage determinations on the job site.
What bonding is required for NAICS 236220 government contracts?
Federal construction contracts typically require bid bonds (5-20% of bid), performance bonds (100% of contract value), and payment bonds (100% of contract value). Establishing bonding capacity is essential for competing.
How can small businesses compete for NAICS 236220 contracts?
Small businesses can compete through 8(a) set-asides, SDVOSB set-asides (especially with VA), HUBZone contracts, and by building experience through smaller projects and subcontracting to prime contractors.
Businesses below this threshold in average annual receipts qualify as small businesses for set-aside contracts.
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