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Aspiring 8a

Eligible Construction Firms Should Reconsider Obtaining an 8(a) Certification

Construction hit a boom during the latter part of the pandemic, and this has caused a decrease in the number of construction firms entering the 8(a) program. This is likely because when you have a full docket of work, there is little point chasing down government projects that will have a higher administrative burden. 


With interest rates rising due to inflation, and the Fed raising rates to cool inflation, there is a lot of uncertainty in the market. Now is probably a good time to reconsider working with the government. Currently there are only 1,761 8(a) firms in the program and 8(a) Construction sales for 2021 were $5.7B, giving each 8(a) construction firm average sales of $3.2MM per firm.  


$5-6B is the normal range of federal construction spending with 8(a) firms, however in 2009 during the last financial downturn, 8(a) construction spending swelled to $8.7B. Therefore, if there is a financial downturn, the 8(a) Certification will become even more valuable to a construction firm.


The lead time for obtaining an 8(a) Certification is around 4-5 months. Therefore, beginning now is a great insurance policy for a financial downturn.   


To see state by state data, and their respective average construction spending sales per year, view below:


If you have interest in exploring your firm’s eligibility and potential with the SBA’s 8(a) Certification, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.


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