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.
This QuickBooks tip discusses adding project information – such as the project name and location – to Invoices and Estimates – by using the Ship To Address block in the job record and modify the template slightly.
There are many times that a contractor, or other business owner, needs to display project information – such as the project name and location – on invoices and estimates. Displaying project information is very useful, especially when a business is working on more than one job or project for the same customer and needs to make it clear which job or project they are talking about when it’s time to create an Estimate or an invoice.
Adding Project Information to Invoices & Estimates
While there are a couple of ways to add project information – such as the project name and it’s location – to an Estimate or Invoice that you generate; I’ve always used the “Ship To” block in the Job record to hold this information.
From the QuickBooks Customer Center, pick a current Job from the Customers & Job list. You can click on the job name to select it and then click the Edit Job button OR if you double-click on the job name you’ll be taken to the Edit window.
On the Address Info tab, look to see if there is any information in the “Ship To” block; if there isn’t, click the “Add New” button (located just below the Ship To block).
When you click on the “Add New” button, QuickBooks opens the Add Shipping Address Information window. Here you will enter details about the job that you want to display on your Estimates and Invoices – see sample screenshot below.
Right click on the image to enlarge it.
Be sure to check the option for default shipping address, and click the OK button to save the information. Your Job record now has both a billing and shipping address.
Right click on the image to enlarge it.
Next you’ll want to edit your Estimate and Invoice templates. From the Lists menu, choose Templates (if you aren’t sure which templates you use, click from the Home page click the Estimate or Invoice icons and the template name will be displayed in the upper right corner of the window), double-click on the Estimate template. This opens the Basic Customization window.
From the Basic Customization window, click on the Additional Customization button. On the Header tab – check the Screen and Print options for both the Name/Address and Ship To titles – you can even make changes to the information that displays on the final forms. For example, you can change Name/Address heading to read To Owner and Ship To to Project Information. See the before and after screenshot below.
Right click on the image below to enlarge it.
NOTE: You may need to change the positioning in the Layout Designer, depending on what other options you select on this window.
Click the OK button twice.
Switch to the Home Page, click the Estimate icon and choose the job that you originally edited. Your Estimate form now displays both billing and project information.
Right click on the image to enlarge it.
When you print your Estimate, this same information will display on your printed form.
Right click on the image to enlarge it.
We hope you’ve found this QuickBooks Tip for adding Project Information to your Estimates and Invoices to be valuable. If so please take a moment to leave a comment.
A prevailing wage job is typically a government funded project. The Davis-Bacon and Service Contract Acts govern federal projects. Most states have a prevailing wage law, but there are some that do not so it is a good idea to know the rules before you bid a project.
Governments, in their idea of fairness, mandate union rules and compensation packages on the jobs. So, one of the simple ways to prepare yourself to do prevailing wage jobs is to have an action plan at the ready that will allow you to cope with the requirements. We will briefly discuss the compensation package.
All prevailing wage projects will come with wage determination schedules that detail the base rate and fringe rates for all craft and trades. The base rate most likely will be the union W-2 payroll rate for the local collectively bargained craft and trades. The wage determinations (WD) will vary because of this. So, it is very possible to see a WD in one part of a state or county different from another. Make sure you are working with the WD that applies to where the job is located, and that they are dated for the time you are on the project. If you are apt to work through the date on you WD, ask the contract office for the new one. You will be held liable for the rates.
The fringe rate is the most confusing for many contractors. The fringe rate is the hourly cost of the collectively bargained benefit package for the craft and trade where the job is located. Fringe rates can vary just as base rates can vary and a contractor must make sure they are working with current fringe rates. The government expects each contractor to pay into bona fide benefit plans at the same rate while on a prevailing wage job. It is easy for the union contractor, but often difficult for the non union contractor because the hourly cost of his employer paid benefits is likely to be less than the fringe rate. If this is the case, the government will compel the non union contractor to pay the difference to payroll.
Non union contractors must understand that they can’t really put fringe dollars into payroll. They must actually pay a bonus equal to the fringe rate liability. Fringe dollars are business expenses, payrolls are wage expenses. Big difference. Fringe dollars as payroll will be subject to FICA and Medicare, SUTA and FUTA taxes. In addition, the bonus will inflate the basis for general liability insurance and workers compensation. Worse yet, fringe dollars to bona fide plans don’t have to be paid weekly. Many contractors don’t get paid frequently enough for weekly payrolls and are forced to use lines of credit until being paid. So, many non union contractors wind up paying fringe dollars as bonuses with borrowed money. Little wonder so many non union contractors do prevailing wage jobs unprofitably.
There is hope however. The action plan must have at the ready bona fide benefit plans that can be legally adopted for the project and expensed as business expenses and not payroll. We can help you develop a prevailing wage action plan. Contact Nancy for more details.
Happy Friday! Where has the week gone? I think for most of us, we’ve spent the week “digging out” from yet more snow!
This week, our Freebie Friday giveaway is a Project/Contract Information Worksheet.
Using a Project/Contract Information Worksheet is one of the best ways to document key information about requirements for a specific job and will help you to keep your project paperwork organized.
We’ve developed a basic 2-page Project Information worksheet, with the help of several contractors over the years; it summarizes important aspects of a particular job and keeps essential information handy, it’s also a great thing to give to your key office staff. When you are working on multiple projects, you do not want to have to stop to re-read a lengthy contract in orer to find a single piece of information.
The simple practice of recording important detailed information for each contract will make everyone’s life easier when you need to complete progress requisitions and/or make collection calls.
Our Project/Contract Information Worksheet, is a Word document, which you can download and customize to meet your own needs. Click here to download it now!
$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)
