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One question can determine the entire course of an architecture project: Is the client public or private?
This seemingly simple distinction fundamentally transforms every aspect of how projects unfold – dramatically impacting contracts, procurement processes, decision-making timelines, and even how construction documents are prepared. For architects, understanding these differences is not just helpful – it’s essential for project success and career development.
For ARE candidates, this knowledge is particularly critical. Many exam questions contain subtle clues about client type that, once recognized, immediately narrow down the correct answer. Rather than memorizing isolated facts, understanding the public-private distinction provides a framework that helps you decode countless scenarios across multiple divisions.
Despite its importance, many ARE study materials don’t adequately break down these differences or explain their far-reaching implications. This is a topic we have discussed in many of our ARE practice questions and in our CDT 101 course. Let’s explore exactly how this single factor shapes architectural practice in ways that affect your daily work and exam readiness.
The Fundamental Distinction
At the highest level, the difference between public and private clients comes down to who is funding the project and who controls decision-making:
Public clients are funded by taxpayer money (government entities, public universities, etc.), which means they’re governed by strict laws ensuring transparency, fair competition, and accountability.
Private clients are funded by individuals, corporations, or private institutions, which gives them far more flexibility in how they make decisions.
Examples of public projects include city government buildings, public schools, and federal courthouses. Meanwhile, office buildings, hotels, and private hospitals are private projects.
While this distinction might seem simple, it impacts virtually every aspect of how a project unfolds. Let’s break down the key differences:
How Public vs Private Status Impacts Projects
Here’s a quick overview of the 11 key areas affected by whether a client is public or private:
- Contracts – Standardized vs. flexible agreements
- Procurement – Strict bidding vs. relationship-based selection
- Project Delivery Methods – Primarily Design-Bid-Build vs. any delivery method
- Decision-Making Process – Multiple approvals vs. streamlined decisions
- Level of Detail in Documents – Highly detailed vs. flexible documentation
- Sustainability Requirements – Mandated vs. optional green initiatives
- Budget and Funding – Taxpayer dollars vs. market-driven financing
- Change Orders and Flexibility – Heavily regulated vs. adaptable changes
- Stakeholder Involvement – Public input required vs. private decisions
- Liability and Legal Exposure – Open records laws vs. private disputes
- Union and Labor Requirements – Prevailing wage laws vs. flexible labor options
Now let’s examine each of these areas in detail:
1. Contracts
Public Clients:
- Often use standardized government contract templates (they may have their own army of lawyers who draft these)
- Contracts have strict payment terms, performance requirements, and legal protections
- Dispute resolution is formalized, involving claims processes, arbitration, or litigation
Private Clients:
- More flexibility in contract structure—may use AIA contracts, custom agreements, or negotiated terms
- Payment schedules and project scope can be adjusted based on client priorities
- Disputes are often resolved privately through informal negotiations or mediation
2. Procurement
Public Clients:
- Must follow strict procurement laws to ensure fairness and transparency
- Typically use formal RFPs (Request for Proposals) or RFQs (Request for Qualifications)
- The lowest qualified bidder typically wins, even if another firm offers better quality
Private Clients:
- Can hire firms directly based on reputation, experience, and relationships
- May use negotiated procurement, where pricing and scope evolve collaboratively
- Selection criteria are less rigid and may prioritize quality, speed, or past relationships over cost
3. Project Delivery Methods
Public Clients:
- Most commonly use Design-Bid-Build (DBB) because it allows multiple contractors to compete fairly
- If they want to use CM-at-Risk or Design-Build, they typically need special approvals
- Rarely use negotiated contracts due to fairness and transparency requirements
Private Clients:
- Freedom to choose DBB, Design-Build, CM-at-Risk, or Integrated Project Delivery based on business goals
- Can make faster decisions about delivery methods to adapt to market conditions
- May combine phases (fast-tracking) to shorten project schedules
4. Decision-Making Process
Public Clients:
- Decisions require multiple layers of approval involving committees, agencies, or elected officials
- The process can be slow and bureaucratic—taking months for approvals
- Projects may be delayed or canceled due to leadership changes or budget cuts
Private Clients:
- Decisions can be made quickly, sometimes by a single owner or small leadership team
- More room for negotiation—if issues arise, scope or budget can be adjusted faster
- Fewer external constraints—changes are driven by business needs, not public policy
5. Level of Detail in Documents
Public Projects:
- Highly detailed construction documents are required to ensure all bidders price the same scope
- Very little room for interpretation once bidding is complete
- Contractors are skilled at finding architect mistakes to exclude from their bid, then adding them as change orders later
Private Projects:
- More flexible documentation—projects can be designed alongside construction
- Some projects may develop CDs in parallel with construction
- Higher risk tolerance allows for adjustments during construction
Additional Impact Areas
6. Sustainability Requirements
Public Clients:
- Often have mandated sustainability requirements through legislation
- May require LEED certification, green roofs, solar panels, etc.
- Projects must jump through hoops to get exemptions from these requirements
Private Clients:
- Sustainability is optional unless required by local building codes
- May pursue green initiatives for business incentives like tax rebates
- Decisions are driven by business objectives, not legislative mandates
7. Budget and Funding
Public Clients:
- Funding comes from government budgets, taxpayer dollars, or grants
- Subject to policy shifts—changes in leadership could freeze funding
- Payment process is typically slow with many approval steps
- Funds are often released in phases, slowing project progress
Private Clients:
- Funding is market-driven—from investors, loans, or internal capital
- Budget decisions are more flexible—clients can invest more or modify scope as needed
- Faster access to funding without legislative approvals
8. Change Orders and Flexibility
Public Clients:
- Change orders are heavily regulated due to public funding rules
- Less flexibility to increase budget or modify scope once contracts are awarded
- Major changes may require additional oversight or legislative approvals
- Changes exceeding certain percentages might require city council approval
Private Clients:
- More freedom to modify designs or budgets throughout the project
- Changes can be implemented quickly based on business needs
- Clients have greater control over costs and scope adjustments
9. Stakeholder Involvement
Public Projects:
- Often require public hearings, community engagement, and political approvals
- Projects face scrutiny from media and the general public
- Multiple layers of accountability slow decision-making
- This explains why public projects typically take longer to complete
Private Projects:
- Decisions made internally without requirements for public input
- Less scrutiny unless the project affects zoning or the local community
- Can progress faster without public debate or media attention
10. Liability and Legal Exposure
Public Projects:
- Subject to open records laws—all documents, emails, and even text messages are public record
- Media can request all communication related to public projects
- Must comply with anti-corruption statutes and strict procurement standards
Private Projects:
- Contractual disputes typically settled privately
- Less public scrutiny while still following standard construction laws
- More confidentiality in communications and documentation
11. Union and Labor Requirements
Public Clients:
- Often must follow prevailing wage laws and workforce diversity requirements
- If contracts exceed certain thresholds, prevailing wage laws apply to all workers
- This significantly increases construction costs
Private Projects:
- More flexibility to hire union or non-union labor
- Can negotiate labor terms more freely
Impact on Architectural Practice
These differences between public and private clients shape how architects work and what skills they need.
For public projects, architects need:
- Strong understanding of government regulations, procurement laws, and compliance standards
- Experience with bidding processes and low-bid selection criteria
- Knowledge of prevailing wage laws and sustainability mandates
- Ability to manage long approval timelines and strictly defined project scopes
For private projects, architects need:
- Strong negotiation skills for contract flexibility and evolving project scopes
- Ability to work efficiently with developers, investors, and business owners
- Adaptability for creative solutions and rapid decision-making
- Experience in value engineering as budget constraints may change quickly
ARE Exam Relevance
Understanding the public vs. private distinction is crucial for the ARE, especially in:
Practice Management (PcM) – Assessing business risks and project types
Project Management (PjM) – Understanding contract requirements and procurement methods
Construction & Evaluation (CE) – Navigating bidding processes, change orders, and project execution
When you see a question about a public library or government building, this immediately tells you to think about low-bid selection, design-bid-build delivery, and strict procurement rules. For a private hotel or office building, you should think about negotiated contracts, flexible delivery methods, and quicker decision-making.
In Summary
The public vs. private distinction fundamentally changes how architecture projects unfold:
Public projects are process-driven, highly regulated, and require patience.
Private projects are faster, more flexible, but may have higher client expectations.
Understanding these differences will not only help you pass the ARE but will make you a more effective architect in practice.
Check out our CDT 101 and ARE 101 courses to learn more about these topics and prepare for your exams more effectively.
