Public Contractors’ Biggest Threat: Annualization! – How to Calculate Annualization and Make it Work for You!

Public Contractors’ Biggest Threat: Annualization! – How to Calculate Annualization and Make it Work for You!

If you are a Public Works contractor and offer a bona fide prevailing wage plan, you are likely familiar with the concept of annualization. The U.S. Department of Labor prevailing wage resource book refers to annualization as: “The computational method that is used to calculate the hourly rate of benefit plan contributions that are creditable to a contractor’s prevailing wage fringe benefit obligation on covered projects.”