Trump Administration and Public Works Projects
Donald Trump has made the rebuilding of our national infrastructure a day one priority. That could translate to unprecedented bidding opportunities for construction companies across the country.
As experienced contractors know, the difference between a winning bid and a losing bid is often very small. Now is the time to put in place a strategy to make your bidding as competitive and efficient as possible.
An effective strategy to manage the cost associated with the fringe benefit requirements of the Davis-Bacon Act and state prevailing wage law can substantially reduce payroll burden expenses. Savings that goes right to your bottom line and gives you more flexibility in your bidding!
When a contractor elects to pay the fringe benefit rate to the employees as additional cash wages, they are needlessly increasing their payroll related expenses such as FICA, FUTA, SUTA, Workers Compensation premiums and possibly liability insurance premiums. Providing bona fide fringe benefits rather than providing additional cash wages avoids these additional payroll burdens.
The DirectAdvisors Trust is the tool you can use to create a comprehensive bona fide benefit program without disrupting your existing insurance coverages, brokers or advisors.
What is a bona fide benefit? The Davis-Bacon Act list benefits that are generally considered bona fide including:
- Health Insurance
- Dental Insurance
- Disability Insurance
- Life Insurance
- Apprentice and Job Training
- Vacation, Holiday and Sick Pay
- Supplemental Unemployment Benefits
- Qualified Retirement Plan (Pension, Profit Sharing, 401(k)
If you have additional questions please do not hesitate to contact us or download our whitepapers – “Harnessing the Power of Supplemental Unemployment Benefit Plans” and “Working the Fringe.”
Please also view our short animated video, to see how constructing a bona fide fringe benefit plan, can move prevailing wage dollars out of payroll and reduce associated costs. Increase profits. Submit more competitive bids. Build employee loyalty.
How we can help
DirectAdvisors, established in 2001 and located in Albany, New York provides bona fide benefit plan consulting and third party administrative services to merit / merit shop (non-union) construction companies that are subject to the Davis-Bacon Act, Service Contract Act and state prevailing wage regulations. Our clients are located throughout the United States and range in size from 10 to 3,000 employees.
Last year, our construction company clients contributed tens of millions of dollars of prevailing wage fringe benefit contributions to The DirectAdvisors Trust (health & welfare benefits) and retirement plans managed by our team.
Our solutions are free from any conflict of interest as we do not sell any financial or insurance products. We work with existing agents, brokers and insurance companies.