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.