If you’re deciding what type of strategy to implement to satisfy the fringe benefit requirements of prevailing wage laws, there are a multitude of factors to consider. Some of them include:

1. The amount of your work subject to prevailing wage law:

• The more prevailing wage work you perform, the less effect of annualization.
• The amount of money you can save in labor burden expenses and how that savings translates to more successful bidding.
• How much money will be available to fund benefits.

2. Which regulations typically cover your work:

• Davis-Bacon Act, Service Contract Act, and applicable state laws.
• Benefit plans should be designed for compliance with the relevant laws.

3. Demographics / Culture / Seasonality:

• How is the workforce organized?
• Worker tenure — frequent turnover vs. long term team
• Do employees work all year or is there a seasonal layoff?
• Do some employees work substantial amounts of prevailing wage work while others work less, or none?

4. Existing benefit plan structure:

• Creative design may be able to complement what already is in place.
• Employee cost sharing.

Designing the most cost effective benefit program should incorporate a strategy designed around analysis of each contractor and based on a review of each category above. Solutions can range from sophisticated, comprehensive plans to a strategic use of narrowing defined options. 

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How We Can Help
Direct Advisors, LLC, established in 2001 and located in the Albany, New York area, provides bona fide benefit plan consulting and third-party administrative services to merit shop (non-union) construction companies that are subject to the Davis-Bacon Act and state prevailing wage regulations. Our clients are located throughout the United States.