Profiting from the Davis-Bacon Act: Are You Making One of the Top Three Deadly Mistakes on the Prevailing Wage Rate?
Mistake #1: Paying the full prevailing wage rate versus a percentage of the rate based upon the experience level of the worker, which can be as low as 60% less PER HOUR! Assume the prevailing wage rate is $30/hour, you could be saving $18 per hour! How do you save the $18 per hour, per person? You must have your workers signed up in a registered apprenticeship program such as the one offered by the Independent Electrical Contractors, the IEC.
Mistake #2: Paying the full fringe amount versus $1 per hour. Additionally, if you are already providing some benefits like paid time off, health insurance or pension, then you can deduct that amount from the required $1 per hour when your workers are in a registered apprenticeship program like the IEC’s. There are a few other mistakes that you need to avoid around the benefit amount – I’ll cover this in a subsequent post.
Mistake #3: Delaying the start date of the registered apprenticeship for your workers until the start of classes. Registered apprenticeship has two components: classroom related instruction and on-the-job-training. Most contractors wait until the start of the classroom related instruction to register apprentices, but registration can start once the on-the-job-training begins. Contact your local IEC office and ask their professional staff how to get workers registered right away.
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