Page 25 - IEC Insights Mar-Apr19

FEATURE

Imagine being the owner A Proven Playbook for Your comply with the law. But allocating this
of an NFL team playing in Prevailing Wage Quarterback amount to a bona fide benefit plan or
plans results in significant cost savings –
the Super Bowl—sitting high It would never happen in a football and that’s why you need a prevailing
in a skybox and cheering game, but on the prevailing wage field wage quarterback on your team.
it happens all the time. Do you work
excitedly for your team. The on government jobs? If so, how well You probably have a payroll system
two-minute warning has coordinated is your prevailing wage and a CPA, maybe an insurance broker,
too. While they are highly qualified,
stopped the clock, the game team? Electrical contractors working on who is coordinating your prevailing
government jobs are subject to a myriad
is tied, and your team has of government laws including the Davis- wage strategy? Who is making sure
the ball on the 50-yard line. Bacon Act. Federal construction contracts everything and everyone is moving in
in excess of $2,000 are subject to the the right direction to ensure projects
But your offense goes in Davis-Bacon Act, which requires payment are completed profitably and fringes are
handled compliantly? In other words, who
of locally “prevailing wages” including the
without a quarterback. “anticipated cost of prevailing benefits.” is your Prevailing Wage quarterback?
Generally this is expressed as a per-hour All too often, people try to be the team
The linemen are ready to read the wage and per-hour cash equivalent value owner and the quarterback. Have you
defense and block. The receivers and of benefits, and is often based on a union ever seen Jerry Jones or Robert Kraft
running backs are ready to execute scale. Prevailing wages are set by the U.S. throw a touchdown in a post season
any number of plays. But no one does Department of Labor and are included in game? They have the skill set to run
anything. Because they don’t know the bid specifications of covered contracts. the team, but throwing a 60-yard
what to do. There is no one on the touchdown pass to a wide receiver who
field calling the plays. Many electrical contractors who work on runs a 4.4 is best left to the pros.
government contracts, like those funded
Without someone to give direction, call by the Davis Bacon Act, state prevailing Trying to be both quarterback and team
an audible if needed and snap the ball, wage, and living and responsible wage owner can lead to significant gaps in
the players won’t accomplish anything. ordinances, pay the fringe benefit portion game strategy. If there isn’t a prevailing
Imagine if that were to happen at a crucial of the prevailing wage as additional cash wage professional in your life taking the
time in the biggest game of the year. wages, believing it’s the easiest way to role of quarterback and executing on the
field for you, then your team may face
some difficult times ahead. Just like in
a football game, working on prevailing
wage jobs involves a lot of moving
parts. There are varying prevailing wage
rates, fluctuating job classifications,
complex Davis-Bacon regulations, rising
insurance costs, bonding challenges,
cash flow issues, fringe mandates, etc.
Every player on your prevailing wage

www.ieci.org | March/April 2019 | Insights Magazine 23