Building cleaning, IT services, security services, construction – for which industries is business with the public sector particularly worthwhile? This article provides an overview and shows what matters in each sector.

Why Public Contracts Are Attractive for Many Industries

Before we dive into industries, three reasons why public contracts are interesting:

Payment security: The public sector pays. Maybe not always quickly – but it pays. Insolvency risk equals zero.

Predictability: Many contracts run for years. This creates stability and enables workforce planning.

Reference value: A contract for the city or state is a reference that counts with private customers too.

Construction: The Classic

The construction industry is the largest market for public contracts. From roads to school buildings – public contracting authorities are constantly building.

Building Construction

Typical projects:

  • Schools and daycare centers
  • Administrative buildings
  • Universities and research facilities
  • Hospitals
  • Fire stations and police stations

Special features:

  • Often lot-based awards (shell construction, finishing trades separate)
  • VOB as the rulebook
  • Strict schedule adherence required
  • Change orders more difficult with public clients

Civil Engineering and Road Construction

Typical projects:

  • New road construction and rehabilitation
  • Sewer work
  • Bridge construction
  • Bike paths
  • Square design

Contracting authorities:

  • Autobahn GmbH (federal highways)
  • State road construction authorities
  • Municipalities (local roads)

Specialized Trades

Drywall: Interior finishing of public buildings – schools, offices, hospitals. Often tendered as a separate lot.

Carpentry: Built-ins, furnishings, custom fabrication for public buildings.

Electrical and plumbing: Technical building equipment – a must for every construction project.

Roofing: New construction and renovation. Particularly relevant for renovation of historic public buildings.

Building Cleaning: Large Volume, Tough Competition

Building cleaning is one of the most important service markets in the public sector.

Why the Market Is So Large

Every public building needs cleaning:

  • Schools (daily!)
  • Administrative buildings
  • Hospitals
  • Sports facilities
  • Train stations
  • Airports

The Challenge

Competition is brutal. Price is often the deciding criterion. This pressures margins and wages.

Success factors:

  • Efficient organization and deployment planning
  • Reliable personnel
  • Quality management that withstands inspections
  • Flexible response to special requests

Framework Contracts as Business Model

Many contracting authorities award framework contracts over 2-4 years. Whoever wins such a contract has planning security. Whoever loses it faces nothing.

Security Services: Growing Market

Security and guarding is a growing market – driven by increased security needs.

Typical Contracts

  • Property guarding (government buildings, refugee accommodations)
  • Reception services
  • Event security
  • Patrol and inspection services
  • Personal protection (rare, but high-value)

Requirements

Certification: Many contracting authorities require certificates (DIN 77200, ISO 9001)

Reliability: Police clearance certificates, sometimes security vetting

Qualification: Expert knowledge examination under Section 34a Trade Regulation as minimum

Market Characteristics

  • Often very price-driven
  • High personnel turnover in the industry
  • Framework contracts common
  • Combination with other services (e.g., reception) possible

IT Services: Digitalization as Driver

The digitalization of public administration creates enormous demand for IT services.

What Is in Demand?

  • Software development and customization
  • IT consulting
  • Cloud services
  • IT security
  • Hardware procurement
  • Support and maintenance

Framework Contracts Dominate

The IT sector is often handled through large framework contracts:

  • Dataport (for several northern states)
  • IT.NRW
  • Federal IT service provider (ITZBund)

Individual agencies then call off from these contracts. Access to these framework contracts is crucial.

Special Features

EVB-IT: Special contract conditions for IT procurement by public authorities. Anyone wanting to work with government must know these.

Data protection: Particularly strict requirements (GDPR, BSI basic protection)

Dependence on funding programs: Many IT projects are financed through funding (digitalization programs)

Architecture and Planning Services

Architects and engineers frequently work for public contracting authorities – but under different rules.

The Difference

Planning services are freelance services. They are awarded under VGV, often in negotiated procedures with selection criteria such as:

  • References from similar projects
  • Team qualifications
  • Approach and concept
  • Price (but not as sole criterion)

Typical Contracts

  • Building design (buildings)
  • Structural engineering
  • Technical building equipment (MEP)
  • Landscape design
  • Urban planning

Competitions

For prestigious projects, architectural competitions are often announced. The winner receives the planning contract.

Catering and Food Services

Canteens, cafeterias, school meals – the public sector needs to eat too.

Market Overview

  • School meals (growing market due to full-day care)
  • Canteens in government buildings
  • Hospital catering
  • Catering in correctional facilities

Requirements

  • Hygiene certifications
  • Sustainability criteria (organic share, regional products)
  • Dietary requirements
  • Logistics for delivery or on-site preparation

Green Maintenance and Winter Services

Cities and municipalities need help maintaining their outdoor areas.

Green Maintenance

  • Park maintenance
  • Roadside greenery
  • Playground maintenance
  • Cemetery maintenance

Winter Services

  • Road clearing
  • Sidewalk clearing
  • Gritting services

Typical: Framework contracts over multiple winters with call-off depending on weather. This means: uncertain income, but little competition in snow-heavy regions.

Fire Department and Rescue Services

A specialized but lucrative market.

Vehicles

Fire trucks are procured almost exclusively by public contracting authorities:

  • Pumper trucks
  • Aerial ladders
  • Technical rescue vehicles
  • Special vehicles

Few manufacturers, but contracts almost all run through public tenders.

Equipment

  • Protective clothing
  • Breathing apparatus
  • Communication technology
  • Response equipment

Public Transit and Rail Transport

SPNV Tenders

Regional rail passenger transport is tendered by the federal states. Transport companies bid for the operation of routes – often over 10-15 years.

These are massive projects: A contract can be worth hundreds of millions of euros. The market is dominated by a few large players (DB Regio, Transdev, Abellio, etc.).

Bus Procurement

Municipal transport companies regularly procure buses – increasingly electric.

Energy Sector and Photovoltaics

PV systems on public roofs are a growing market:

  • Schools
  • Administrative buildings
  • Parking lots

The tenders include planning, installation, and often maintenance as well.

Success Factors Across All Industries

Regardless of your industry – some principles apply everywhere:

1. Specialization beats breadth Better to be the best in a niche than mediocre in many areas.

2. References are gold Every successful contract is a reference for the next. Document your projects.

3. Quality must be demonstrable Certifications (ISO, DIN, industry-specific) open doors.

4. Capacity must fit Don't take contracts you can't handle. The reputational damage from failure is enormous.

5. Build networks Even in the public sector, contacts matter – naturally within procurement law boundaries.

Conclusion: Every Industry Has Its Market

Public contracts exist not just in construction. From building cleaning to IT to catering – almost every industry can participate in the public market.

The key lies in understanding your own market: Who are the contracting authorities? What are typical contract volumes? What requirements are set?

Those who can answer these questions are ready for systematic acquisition.

In the final article of this series, we cover software and tools for tender management – and career paths in Tender Management.