True, to a degree, and I have seen this argument before, but I see them as two different functions.
The us currently is currently creating a welfare dependent class, to the point that multiple generations have now come to pass with all of them subsisting on welfare. That's a one way ticket to failure to most people born into those conditions. On top of that we are giving the message that you can get something for nothing (I apologize if this viewpoint seems harsh), if people are going to subsist off the government, the government needs to see a return for its investment. On top of this the pay for these services would be hopefully below the standard for construction companies (who hopefully would continue working for the public sector), people working for the mandatory jobs program would hopefully think to themselves "you know what, I've learned a lot doing this job, maybe I should go private and make more money". I do see a lessening in government contracts to construction companies, but I have to tell you that this in itself has become a form of welfare, the average production value for government contract workers is terrible for far to much money. (sorry for rambling)
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