There are contractors who work more often on government projects; there are also those who work more often on private projects; and then there are contractors who are used to doing both successfully. For contractors who are not very experienced, they will find real differences once they try to work on different projects. Actually, what are the differences between government projects and private projects? Below, we will discuss it in full.

Difference between Government Projects and Private Projects

Whether working for a government project or a private company project, a project manager must be able to understand what the goals of the project are and where the funding process comes from. Apart from that, of course, the project manager must be able to maintain communication with stakeholders and also the project owner. Government projects and private projects certainly have various differences. Contractors must be able to adapt to these differences in order to complete the project smoothly. Even if things have to change in the middle of the project, as long as they can be communicated well, it won't be a big problem. The difference between government projects and private projects can be seen from various sides, namely:

1. Goals Government Project In general, government projects are not created to make a profit but rather to meet the needs of the general public. The project is intended to improve public services better than before. So with this new project, the public will benefit more. The specific objectives of government projects can, of course, vary depending on the sector being handled. For example, for the development of infrastructure, public transportation, education, health, and various other public interests, Government projects are not created with the aim of benefiting one particular government agency. Private Projects Of course, different from government projects, private projects generally have the same general goal, namely generating profits for the company as the project owner as well as all parties involved in the project. Private projects will focus more on the business and marketing aspects. Specific objectives may vary. For example, someone wants to improve factory conditions and facilities so that the production process can run more smoothly. There are also those who want to increase research space so they can create higher-quality products, and much more. But basically, development is carried out to improve the company in the future.
2. Responsibility Government Project In general, government projects are made based on community needs. The goal is to serve the public better. So the government has a responsibility on this side to ensure that ongoing projects are managed effectively and efficiently. Of course, this responsibility will be shared with the contractor and must be maintained so that it is not excessive but still maintains quality. Contractors are also responsible for achieving the government's goals. Private Projects In contrast to government projects, private projects generally aim to achieve different business goals. Even though the specific goals differ, every private company usually aims to gain profits for the project owner and relevant stakeholders. The main focus of project development is financial success and long-term project sustainability. Therefore, the contractor is also responsible for making the project carried out achieve the company's goals. As much as possible, project success should not only last in the short term.
3. Funding Government Project Every government project, of course, comes from the state budget or taxes collected from the community. The source of funding and the nominal amount really depend on government policy in terms of budget allocation. Private Projects Private projects allow for more varied funding sources. Funds can come from company fees, private investor funds, or financing from banks. There are even other types of funding from angel investors who do not expect to make a profit from the funds they have invested. Apart from angel investors, who tend not to expect profits, other funding sources generally expect profits from the new project. The project owner has the responsibility to find sources of funds for development and later return the investment through project income or other income.
4. Evaluation of Project Success Government Project Like government projects in general, the success of a project is usually measured based on the project's benefits to the public, its social impact, or whether the project can meet community needs or vice versa. Evaluation of the success of government projects usually uses several indicators, such as economic improvement, improved quality of life, the level of service provided by the project, and its sustainability for the environment. Private Projects Very different from government projects, the success of private projects is usually measured by financial indicators. For example, profit, competitive advantage, return on investment, and market growth. Apart from financial indicators, the success of private projects is usually also measured by the level of customer satisfaction, operational efficiency, and product innovation. If the project is well received by customers, even getting new customers, then it is in the success category.

When planning government or private projects, of course, all project owners want transparency and smooth communication with contractors and all stakeholders. Therefore, use the services from Tomps by Telkom Indonesia, which will help various company projects at various scales, small and large. Tomps prioritises ease in managing company needs through supervision that can be done online. It comes with various strategic smart features and an easy-to-learn interface, so it can improve company performance. Visit the Tomps website now and get a demo to better understand all the services!