The contractor takes various types of construction related contracts like construction of the brick works, RCC structures, floor works, plumbing works, painting works etc. A number of construction related activities are carried out in many private companies and government organizations. They don’t have their in-house construction team and can’t really afford to employ such team since they don't have regular construction works. Such organizations raise the tenders for various constructions related activities and the bidder with the lowest amount is awarded the project.
There are two types of contractors: private contractors and government contractors. The private contractors usually bid only for the private company contracts like construction of certain buildings in their premises, construction of various plants, painting the building, carrying out plumbing works etc. Many builders also outsource some parts of their projects to the private contractors so that the works can be done at lower rates without employing the expensive expert manpower in that field. The government contractors usually bid for the government contracts like construction of the government or federal building, painting of the building, construction of the roads and bridges, construction of dams, airports etc.