Strategies for Making the Move to Public Works Construction Projects Seminar – American Subcontractors Association, San Diego branch, January 19, 2012
The current economic situation has dealt a serious blow to both homebuilders and commercial contractors and many are finding themselves make the move to Public Works construction and Prevailing Wage projects. Make the move to Public Works construction will require planning and quite possibly a variety of changes in the way you currently run your existing construction business.
Join industry experts; Steve Kuzmack, President of Fringe Benefit Experts and Nancy Smyth, President of Sunburst Software Solutions, Inc. for an intensive 2 hour session on January 19, 2012; on strategies for lowering labor costs and complying with certified payroll reporting requirements on Federal and/or State funded construction projects.
Learn How:
- To reduce payroll taxes and insurance premiums on your prevailing wage projects.
- “Bona Fide” benefit plans operate and how they decrease labor costs while increasing company profits and enhance employee benefit programs.
- You, the owner, can put more pre-tax money into your personal 401K.
- To smooth out the wage discrepancies between Private and Public Work.
- To save $2.00 – $4.00+ in payroll burden per man hour – based on San Diego Wage Rates.
- Supplemental Unemployment Benefit {SUB} Plans operate – and why your field workers like them.
Learn the Pros and Cons of Paying the TOTAL Hourly Prevailing Wage Rate on Payroll:
- Impact on your company
- Impact on your employees
Learn About Types of “Bona Fide” Fringe Benefit Plans:
- SUB Plan – “Field Workers Get Paid When Not Working” {Holidays, Layoffs, Reduction in Hours}
- Pension Plan – How to Increase Owner and Staff Pre-Tax Contributions
- Health Plan – Make Health Insurance Premiums not only Pre-Income Tax but Pre-Payroll Tax as well
Learn About Bookkeeping, Accounting & Payroll Procedures:
- When you pay the full fringe rate as part of employees hourly rate of pay
- When you pay the full fringe rate to one or more “bona fide” fringe benefit plans
- When you pay a portion of the fringe benefit rate to a plan and the balance in cash
Learn About Certified Payroll Reporting Requirements:
- What is a Certified Payroll Report?
- How do I complete a Certified Payroll Report?
- Are there different requirements for State and Federally funded construction projects?
If you want to get more competitive, grow your company and create more profit; then this seminar is for you.
This event will be held:
January 19, 2012 from 1:30 – 3:30 p.m. at the SMART Safety Office, 9471 Ridgehaven Ct. #C, San Diego, CA 92123. Non-member Price $60.00. Member Price $45.00. Register for the event OR download a seminar flyer.
In a conversation with a builder today, I noticed huge similarities between the construction process and running a successful business.
This design/build contractor was stating that the best way to run a construction project was to take time to strategically outline the details and then execute the plan. He was explaining how costly and frustrating it can get when his customer makes big changes half way through the job. “Once the foundation is poured”, he said, “it can be very costly to change the design. Time spent planning will always pay off down the road”.
After a while we began to discuss his business and how he moves through his day. “I am constantly putting out fires and sometimes ask myself if I should be doing something else with my time, something more productive”
It hit me that the construction process is not unlike the business process itself.
Make a plan, then work the plan
When we think strategically about our business processes, we can be more effective, more efficient, and happier because we know the tasks that need to done. With a process in place our people then execute the system. Without the clarity of knowing what really works in our business, it’s not surprising that we wander day to day throwing stuff up on the walls of our business to see what sticks.
What specific activities generate new business? What percentage of business comes from the web/social media versus word of mouth referrals? Are you constantly changing course mid-stream? What is the most profitable part of your business? What’s the most productive use of your time and talents?
As the captain of the ship your people and your customers look to you for leadership and direction. Do you know how effective you are in the leadership role? Do you know what makes a good leader?
To successfully pour a foundation, for example, a specific process is followed. A plan is drawn up, general site work takes place, a survey is conducted and stakes positioned to mark the site. People and machinery are brought in to dig the hole, set the forms, pour the concrete, remove the forms, etc.
Do you have similar procedures in place for your business? How you market, answer the phone, take a customer through the sales process, and hold employees accountable?
Most of us come to business from the technical end. We are great carpenters, accountants, photographers, etc. The challenge is when we begin to grow and change our knowledge needs to change with it. Our job description changes from “carpenter” to leader. The activities and knowledge needed by a leader are completely different from that of a technician in the field.
In order to grow your business and have a sane life outside of work it’s necessary to have a solid strategic plan. A plan for your business, a strategic marketing plan, a road map for your people to follow and the desire to change.
The desire to change is the first and most important step. Often business owners don’t make a change until they are feeling the pain. The pain of 60 plus hour work weeks, strained relationships, dwindling check book balance.
Time to face reality.
What’s working in your business? What’s not? By taking time away from the day to day operations and getting a 30,000 ft. view of your business, you will find clarity and direction. Your people, health, relationships, and business depends on it.
A QuickBooks for contractors tip about issuing joint checks to a subcontractor and a lower tier subcontractor or material supplier for payment for work completed on a construction project.
Quite frequently, in the construction industry, a contractor needs to issue a joint or two-party check to a subcontractor and a lower-tier subcontractor or material supplier for work completed and/or materials delivered to the construction project’s job site.
Unlike many high-end construction accounting packages, QuickBooks doesn’t have a way to handle this automatically — or easily.
This QuickBooks for contractors tip provides what we consider to be a best practice when a situation like this arises.
Problem:
Joe’s General Contracting, Inc. needs to issue a $10,000.00 joint check to Sam Subcontractor AND O’Fallon’s Gravel for sand, gravel, and crushed rock which was delivered to a jobsite. Sam Subcontractor is one of Joe’s regular subcontractors and is already in the QuickBooks Vendor List; O’Fallon’s Gravel is not a normal supplier and is not setup in the Vendor list. Sarah, Joe’s bookkeeper isn’t sure how she should handle a joint check.
Solution:
When Sarah is ready to write the joint or two-party check, she should follow these steps:
- Edit Sam Subcontractors Vendor record in QuickBooks and in the Print on Check as field, she should add AND O’Fallon Gravel. She should also edit the Billed From Address so that it to displays Sam Subcontractor AND O’Fallon Gravel. Clicking the OK button to save her changes.
Right click on the image to enlarge it
- From the Write Checks window, select Sam Subcontractor, enter the dollar amount. In the Memo field type in Joint Check issued to Sam Subcontractor AND O’Fallon Gravel and then job cost as usual.
Right click on the image to enlarge it
- Print just this check.
- Immediately go back to Sam Subcontractors Vendor record and delete all references to O’Fallon Gravel, click OK to save the changes.
- Customize the columns to display in the Vendor Center to include the memo field.
Right click on the image to enlarge it
Make sure that you also have the proper Lien Waive and Release forms.
We hope you found this QuickBooks tip to be useful — if so please take a moment to leave a comment, share it on your favorite social media site or click the +1 button below.
Unraveling Certified Payroll Requirements On Federal Construction Projects webinar presented for L2 Federal Resources, LLC
Wednesday, May 18, 2011 • 1:00 – 2:30 PM EDT
Presented by: Nancy Smyth, Sunburst Software Solutions, Inc.
_____________________
Making the move from residential/commercial construction projects to government-funded construction projects, which have certified payroll reporting requirements, can be overwhelming for most contractors, their office staff, and the accounting professionals who support them. This often misunderstood requirement can lead to major problems, including non-approval of payment requisitions, denial of payment for change orders and claims, and contract termination. Don’t get caught in a payroll certification trap; learn the ins and outs of federal certification payroll requirements and get all your questions answered.
Our live, instructor-led, on-line training class focuses on the following:
- What government agencies make the laws behind certified payroll reporting requirements?
- How to comply with Labor Standards & Payroll Reporting requirements
- How to complete a Certified Payroll Report & Statement of Compliance
- Common methods for creating Certified Payroll Reports, Statements of Compliance, EEOC, ARRA and Fringe Benefit Reports
- State prevailing wage vs. Davis-Bacon forms and which form applies
- Electronic certified payroll filing requirements
- Ways contractors pay fringe benefits and how to report them
- Tracking employee time and work classifications
- Requesting additional “trade/work classifications” and wage rates
- Typical errors that require correction
- Don’t forget to include your subcontractors
- What happens when things go wrong
- Automating these time-consuming, error-prone tasks
- And much, much more!
In addition, a 10-to-15 minute period has been reserved at the end of the speaker’s presentation for an interactive question-and-answer session so you can discuss specific issues or gain additional knowledge about topics discussed.
Who Will Benefit?
Contractors who are currently (or are interested in) contracting with the federal government, and who want to better understand and improve their certified payroll processes. Certified payroll is everyone’s business; gather your whole team, including:
- Owners
- Estimators
- Controllers
- CFO’s
- Payroll processors
- Office managers
- Business development experts
- Accounting & Consulting professionals
- Union and non-Union Contractors
Register ONLINE, at the L2 Federal Resources, LLC registration page.
$3.5 billion mixed-use development rises along harbor in Connecticut.
The $3.5 billion Harbor Point development in Stamford, Conn., has started to take shape as towers rise near the water. One of the largest mixed-use projects in the country, Harbor Point sits on 80 acres and will include 4,000 residential units, a marina, a school and some 2 million square feet of office and retail space. The New York Times (free registration) (12/7)
New York Department of Transportation plan major bridges makeover
More than 17,000 bridges in New York are fast approaching middle age, and the state’s transportation agency plans to focus on the makeover of some of them. The state has earmarked about half of the $7 billion in its two-year capital spending plan to rehabilitate about 385 state and local bridges. The Wall Street Journal/The Associated Press (12/7)
Connecticut brownfield site could become a $750 Million mixed-use development
A 600-acre industrial brownfield site in Windsor, Conn., could become a $750 million master-planned residential and light commercial development. Named Great Pond Village, the site plan includes 3,500 single and multifamily residences, 85,000 square feet of retail and 250,000 square feet of office, research and development space. The planned development will use eco-friendly designs and technologies and provide space for walkers, cyclists and public transportation. Hartford Business Journal (Conn.) (12/7) , The Hartford Courant (Conn.) (12/7)
San Diego considers $230 million waterfront redevelopment
San Diego officials are close to approving the first stage of a $230 million redevelopment project on the north end of the Embarcadero. “It’s going to be a grand project with hotels and retail space that will attract visitors to San Diego,” said a Port District spokesman. “These are significant improvements with landscaping, wide walkways, running paths and areas for the public to gather.” SanDiegoNewsRoom.com (12/7)
