Partnering with Associated BenefitsConsultants to…“…increase your WIN’s & PROFITin Government Bids.”
The important qualifying questions? ● Are you a Non-Union Employer? ● Are you bidding on or currently engaged in prevail...
Government Markets ● Construction & Maintenance Contractors Bidding Work Subject to Prevailing Wage Laws ● Federal & Sta...
Solving Industry-Specific Business Problems
Sample Bidders List(aka, the value of 1%) Fairchild Hall Rehabilitation Project Jan 8, 20111...
Increased Compliance Enforcement ● Federal stimulus package included millions for increased enforcement ● DOL Wage & Hou...
Sample Wage Determination BASE + FRINGE WAGE BENEFIT $30 $10 TOTA...
Employer Decides How toSatisfy the Wage Obligation ● Contractors typically pay the “base” amount in cash and then choose...
The Problem when PerformingGovernment Work…. ● Many contractors pay some or all of the mandatory fringe benefit package ...
Why? All cash wages subject to payroll burden: ➔ FICA 7.65% ➔ FUTA & SUTA* 2.00% ➔ Gener...
How it works…Plumber, OhioPay Fringe in Paycheck Pay Fringe to “Bona Fide” PlanBase Wage $34.52 Base Wage ...
Plumbing Contractor…“the WIN & PROFIT!” ● About 75% of this contractor’s work is government ➔ 2080 annual hours x 75% =...
Want to know how your firm can“win & profit?” Please contact me: Bob McCollins Associated Benefits Consu...
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Prevailing wage program

Published on: Mar 4, 2016
Published in: Career      Business      
Source: www.slideshare.net


Transcripts - Prevailing wage program

  • 1. Partnering with Associated BenefitsConsultants to…“…increase your WIN’s & PROFITin Government Bids.”
  • 2. The important qualifying questions? ● Are you a Non-Union Employer? ● Are you bidding on or currently engaged in prevailing wage projects? Do you see your business expanding into this market? ● How do you currently handle the fringe portion of the wage determination? ● Would you like to decrease your labor costs and WIN more business or increase your PROFIT?
  • 3. Government Markets ● Construction & Maintenance Contractors Bidding Work Subject to Prevailing Wage Laws ● Federal & State Davis Bacon Act ● Federal Service Contract Act ● American Recovery & Reinvestment Act (“ARRA”) ● Required or Available Fringe Benefit Allocation ● Non-Union or Split Shop
  • 4. Solving Industry-Specific Business Problems
  • 5. Sample Bidders List(aka, the value of 1%) Fairchild Hall Rehabilitation Project Jan 8, 20111 Scotts Industrial Electric, 3178 Bincrete Lane (999) 298-7481 $674,595.002 Heatherville Electric, 360 Industrial Drive (999) 743-1220 $675,900.003 Johnson Electric, 1145 Bellbrook Ave (999) 372-8205 $681,000.004 Chappelle Electric ,1985 Founders (999) 222-2290 $732,442.005 Caret Electric Company, 3925 Pansini Lane (999) 669-3399 $735,000.006 Kastle Electric, 4501 Libby Blvd (999) 254-2681 $740,300.007 BBW Electrical Contractors, 3400 Kettering Blvd (999) 293-6138 $745,897.008 Debra/Kuempel ,1948 W.Phyllis Lane (999) 531-5455 $770,000.009 Schamberger Electric, 6901 Americana Pkwy (999) 863-1844 $788,500.00
  • 6. Increased Compliance Enforcement ● Federal stimulus package included millions for increased enforcement ● DOL Wage & Hour Division hiring 300 new investigators through 2011 ● 400 investigations in 2009; 1,400 in 2010 ● “Sweeps” and targeting of subcontractors ● W&H goal of debarring at least 90 companies in 2011 compared to 10 to 20 in past years
  • 7. Sample Wage Determination BASE + FRINGE WAGE BENEFIT $30 $10 TOTAL HOURLY WAGE $40
  • 8. Employer Decides How toSatisfy the Wage Obligation ● Contractors typically pay the “base” amount in cash and then choose how to pay the “fringe” portion; ➔ For vacation and holidays, ➔ Into an approved apprenticeship program, ➔ Furnish “bona fide” fringe benefits, or ➔ As cash, and have it treated as wages
  • 9. The Problem when PerformingGovernment Work…. ● Many contractors pay some or all of the mandatory fringe benefit package as wages because it is the easiest way to satisfy DOL compliance. It is also the most costly method…
  • 10. Why? All cash wages subject to payroll burden: ➔ FICA 7.65% ➔ FUTA & SUTA* 2.00% ➔ General Liability* 2% - 15% ➔ Workers’ Comp* 10% - 40% The actual payroll burden can be 11%-60% This increases your labor costs!!! *varies by company & state
  • 11. How it works…Plumber, OhioPay Fringe in Paycheck Pay Fringe to “Bona Fide” PlanBase Wage $34.52 Base Wage $34.52Fringe $10.33 Total Wage $34.52Total Wage $44.85 Payroll Burden $ 8.63Payroll Burden $11.21 (25%)(25%) “Bona Fide” Plan $10.33Bid Cost $56.06 Bid Cost $53.48 $2.58/hr savings per person
  • 12. Plumbing Contractor…“the WIN & PROFIT!” ● About 75% of this contractor’s work is government ➔ 2080 annual hours x 75% = 1560 hours ● There are 25 hourly employees ● The hourly savings by removing the fringe from payroll is $2.58 ● The annual savings: ➔ 1560 hours x 25 EEs x $2.58 hour = $100,620 Many pay for health premium or retirement contributions “on top”!
  • 13. Want to know how your firm can“win & profit?” Please contact me: Bob McCollins Associated Benefits Consultants bmccollins@associated-ins.com 614-264-9694

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