Simple and Effective Ways to Prove Prevailing Wage

By: Michael Dickran, Director of Enterprise Sales, Arcoro

ABC members are eligible for 10% off new ExakTime or Arcoro software contracts through ABC's Tech Marketplace.

US builders and contractors currently have a huge business opportunity, thanks to federal investments in public projects. Several acts have launched over the last couple of years that will eventually add trillions of dollars into infrastructure, clean energy construction and semiconductor and supply chain projects, including the Bipartisan Infrastructure Deal or the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act. Taking advantage of the billions in funds that are currently trickling down to all 50 states requires an understanding of prevailing wage and other requirements for federal contractors.

What is Prevailing Wage?

Prevailing wage is the amount employees must be paid when working on government-funded projects. It’s a mandate laid out in the Davis Bacon Act or DBA, which was created in 1931 to protect workers from receiving low pay while competing for federally funded construction projects during the Great Depression. The act, as currently amended, requires that any federal contractor who takes on a job over $2,000 on public buildings or public works must pay their workers no less than the prevailing wage and fringe benefits as on similar projects.

The prevailing wage rate is determined by the by the Wage and Hour Division (WHD) and is dependent on where the work is and what type of work is being done, i.e., specific geographic areas and jobs, like laborers, carpenters, installers and so on.

How Certified Payroll Fits into the Equation

Prevailing wages must be paid on all hours worked on the site of the work and employers must submit weekly certified payroll records. Certified payroll reports provide proof of compliance with DBA. Federal contractors must submit Federal Form WH-347 for certified weekly payrolls on contracts subject to the DBA and make sure each of the form’s fields are filled out correctly, including correct names, addresses, worker classification, hours worked and pay. Current DBA wage rates for each state can be found online by filling in a few fields or providing the wage determination (WD) number. Once the WH-347 form is filled out, submission is certified by signing the compliance statement in the form. It’s important to note it must be an officer of the company or someone that’s able to bind the company into a contract, like a controller, that signs off on the certified payroll report.

If figuring out prevailing wage and certified payroll seems like a lot, it’s because it is. But you don’t have to be an expert on the subject, let HR technology help handle the details.

The Solution: Tracking Accurate Hours

Tracking and logging accurate working hours are the foundation for fulfilling certified payroll requirements. This includes knowing the exact time when each of your employees starts and ends a job that’s funded by government money along with other details like:

• What jobs your employees performed, i.e., worker classification
• Where the employee worked
• Tracking subcontractors
• Tracking apprentices
• Signing off on time sheets by having them approved by the employee and supervisor
• Setting up wage tables for jobs via your payroll software
• Feeding the information to your payroll system to print certified payroll reports

Accurately tracking worker time, transferring the data to payroll and submitting certified payroll reports can take substantial time without software that’s built for construction. For example, some payroll systems like QuickBooks don’t have pay tables, forcing accounting staff to manually look up prevailing wage amounts.

Payroll time tracking software allows contractors to track and store all worker hours. Unlike paper time sheets or even Excel spreadsheets, the information can’t be altered, fudged or lost. Time tracking software can also follow your workers from job to job. So even if your employees work on both government and privately funded jobsites the same week or same day, the information is logged securely and accurately. The data can then be quickly and easily uploaded for use with your payroll software. Good time tracking software will streamline your certified payroll process by providing all the information you need for certified payroll reports.

How ExakTime Can Be Used for Prevailing Wage Projects

ExakTime is a cloud-based time and attendance solution from Arcoro that gives you the power to manage employees’ time records, job costing information, locations and other field data easily and efficiently. ExakTime’s construction-first solution solves both accuracy and reporting needs of prevailing wage jobs by:

• Tracking job costs
• Tracking employee location via GPS and geofencing features
• Setting up multiple cost codes for multiple employees
• Following employees from location to location
• Having an established mapping to more than 100 payroll packages

ExakTime also is configurable for alternative pay as well as job and cost codes for prevailing wage work. You can view all your job sites and limit certain codes, like prevailing wage codes, to specific sites. For example, admins can set up multiple groups, with specific worker classifications under each.

• Group A (Non-Prevailing Wage): Demolition, drywall, finishing, foundation, framing
• Group B (Prevailing Wage): PW-Laborer, PW-Flaggers, PW-Drywall Installer, PW-Carpenter

Employees who work both types of job can easily switch between cost codes, ensuring accurate pay and classification. Only employees working on prevailing wage sites get the option to clock in under a prevailing wage job classification, ensuring those who work only on non-prevailing job sites can’t clock in under a higher wage.

ExakTime also offers an at-a-glance dashboard that lets managers see where employees clock in and the cost code assigned, start time, hours, overtime, breaks and total time. Security features, like geofence and FaceFront photo ID, reduce or eliminate buddy punching or padding time sheets.

ExakTime helps reduce the risk for prevailing wage noncompliance. It provides an electronic paper trail that includes employee sign off, data accuracy via proof of chain of command and securely stored and easily accessible documentation in case of audit.

Plus, ExakTime works with top construction payroll providers. Our partners include Sage, Spectrum, Vista, Acumatica and more.

Let ExakTime set you up for success when it comes to complying with the DBA, prevailing wage and submitting certified payroll report. Plus, with our easy onboarding, award-winning features and top-notch support, you can be assured you’re getting a solution that works for your company.

Don’t wait. Contact an ExakTime representative today.

7 Steps to Better Procurement

By: Maria Davidson, CEO and Founder, Kojo

ABC members can now receive a free implementation of Kojo. 

After working with thousands of contractors to improve their procurement and materials management processes, Kojo noticed a pattern among those experiencing exceptional growth and resilience in the face of challenges like supply chain disruptions and inflation. We analyzed what these top-performing contractors were doing differently from start to finish and compared it to other contractors.

What we discovered is that the best-in-class contractors had simplified their procurement process into seven steps that include standardized tasks and often technology. Efficiently completing one step made the other steps simpler. Every ounce of energy had a positive compounding effect, which led to jobs getting done on time, on schedule and on budget and with less overhead costs.

Unfortunately, many contractors lack a formal procurement process. According to a 2021 survey conducted by the Construction Financial Management Association, only 39% of contractors reported having a formal procurement process in place.

By implementing a standardized seven-step procurement process, contractors can save on materials cost, increase productivity and make better business decisions.

So, what are the seven steps?

Step 1: Planning

Planning may sound self-explanatory, but this step varies among contractors. Those who lack an organized, well-constructed plan for how they are going to procure all materials needed on the job before the job starts will fall behind their competitors. This first step is imperative to setting the project up for success by making each of the other steps simpler.

Step 2: Sourcing

Sourcing entails gathering relevant information to determine what materials you should buy, when you should buy them and from whom. Effective sourcing is critical for managing material costs.

Step 3: Purchasing

The purchasing step ensures that the purchasing orders are created and tracked in an efficient manner. The goal for this step is to reduce overhead costs while ensuring that all purchasing data is accurate and up to date at all times. According to a recent study by Fails Management Institute, when contractors optimize their purchasing processes, they can see a reduction in procurement costs of up to 25%. With that, it is essential to approach this step strategically and implement best practices.

Step 4: Requesting

Better materials requesting is the fourth step to better procurement. This plays a critical role in ensuring that the field receives the right materials at the right time, without compromising speed, accuracy and safety. Gartner reports that digital procurement solutions can cut processing time by up to 85% and reduce costs by up to 45%. To become a top-performing contractor, mastering the requesting process is essential.

Step 5: Receiving

Receiving involves logging deliveries to the jobsite and warehouse with essential information to track inventory, record delivery issues and maintain a historical record of materials delivered by vendors. To avoid issues later in the procurement process, it is vital to streamline it so that receiving can promptly relay this information back to the office for further management and record-keeping. Additionally, this information serves as proof for project managers, accounting, purchasing and vendors in case of discrepancies.

Step 6: Invoice Matching

Invoicing matching is the practice of comparing your invoices with the original POs and delivery receipts to catch billing errors and prevent overpaying. The traditional, three-way invoice matching processes have been notoriously manual and time-consuming, which is why it is important to implement technology to automatically compare.

Step 7: Payments 

The final step of the procurement process is payments. This step encompasses optimizing pre-payment workflows and approval processes, determining when and how to pay invoices, selecting appropriate payment methods and ensuring the security of payment data. Mishandling this step can lead to late payments, missed discounts and inaccurate data, all of which can cause significant financial and relational setbacks.

Next Steps

Now that you have a basic understanding of the seven steps, it is important to take a look at your current practices and determine areas where you can improve.

Hear how Central Electric improved their procurement processes in this webinar.

 

2023 Trimble Dimensions Recap

ABC members can now  receive 10% off new Trimble products in the Construction Enterprise Solutions Division 

By: Patrick Scarpati, Director of Construction Technology and Innovation, ABC

In November 2023, I attended Trimble Dimensions in Las Vegas. I was able catch a glimpse of what the future may entail in the construction technology space from one of the most sought-after providers in the industry. Keynote speaker Mark Gallagher, an industry analyst for Formula 1, set the tone for the event by talking the audience through high-performance leadership, technology and teamwork.

For the next few days, attendees from various industries around the world sat in on sessions ranging from emerging technologies to sustainability. As much as I wanted to attend sessions for all of the 13 topics covered, I decided to focus my time on perhaps the most popular current trends: AI, the labor shortage and next-generation workforce and data flow and technology integrations.

AI (35 Available Sessions)

Trimble announced that its enterprise resource planning will now include automatic invoicing capabilities through its latest integration with Azure AI Document Intelligence. Per the press release, “The integration of Azure AI Document Intelligence enhances Automatic Invoicing, helping automatically turn paper and PDF invoices into validated, unapproved invoice entries within Spectrum and Vista for faster, more accurate workflows that save contractors valuable time, effort and money.”

One of the spotlight panel sessions on AI, “Exploring the Power of Artificial Intelligence to Transform Industries,” included two members from PwC, along with the director of AI at Trimble. This team walked us through their list of themes for AI transformation. (Picture)

Workforce (87 Available Sessions)

Several trade schools and craft academies around the country are recognizing the importance of implementing construction technology into curriculum. In one example, through its industry partnership program, Trimble provides resources and guidelines to educational facilities on how to teach students the effectiveness of jobsite layout on their Robotic Total System family of equipment. Trimble also highlighted how important it is to get students to start learning much of the 3D modeling/layout component in construction by utilizing its VDC Pro+ Solution in the classroom.

An innovation panel on what the role of the general contractor may look like in 10 years was also interesting. Although speculative, panel members discussed topics ranging from AI’s future impact on general contractors to whether modular will take more of a foothold in the industry and what the next generation of our workforce may look like. Previously working in the trades and eventually as a general contractor, I was fascinated to hear that eventually general contractors will be less and less of self-performing contractors, as the industry is mostly filling up with construction managers.

Data Flow and Technology Integrations

Trimble has time and time again emphasized the importance of data flow and tech integrations. This was most evident not only through the panels and sessions offered, but on the exhibit hall floor, where most vendors were able to talk about how their product ties directly into the Trimble portfolio of solutions. One example of this is the partnership between Trimble Viewpoint and Tenna. End users can capture equipment data, location and hours/miles as they are work through various projects.

 

Additional Photos

LISTEN: How to Design an Effective Technology Adoption Strategy

Autodesk Digital Builder Podcast

Matt Abeles, ABC vice president of construction technology and innovation, sits down with Autodesk University host Eric Thomas to talk about the ABC Tech Alliance and how it is revolutionizing the construction industry, making everyone safer along the way.

Listen or watch the podcast now: https://go.abc.org/43UvxrA

ABC’s Tech Alliance was built to help drive ABC members’ ability to develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work through improved utilization of technology. The alliance is a hand-selected group of 15 construction technology companies that add inherent value for ABC members and position ABC as a leading association for construction technology needs.

US Department of Defense: Contractors Must Prepare for New Cybersecurity Regulations

In response to the Defense Industrial Base becoming the target of more frequent and complex cyberattacks from foreign and independent bad actors, the U.S. Department of Defense is expected to release new cybersecurity regulations in 2023 designed to enforce protection of sensitive federal contract information and controlled unclassified information that is shared by the DOD with its contractors and subcontractors, including general contractors and subcontractors performing DOD contracts for construction services.

According to the DOD chief information officer, “To protect American ingenuity and national security information, the DOD developed the Cybersecurity Maturity Model Certification 2.0 program to reinforce the importance of DIB cybersecurity for safeguarding the information that supports and enables our warfighters.”

“The forthcoming CMMC 2.0 rulemaking presents an opportunity for ABC members and other construction industry contractors pursuing DOD contracts to examine their cybersecurity hygiene, participate in the rulemaking process and conform with changes outlined in the final rule, or else they will no longer be qualified to win DOD construction contracts,” said Ben Brubeck, ABC vice president of regulatory labor and state affairs. “In an effort to help ABC members win more work, ABC plans to engage in the forthcoming rulemaking process and provide additional educational resources for ABC member contractors to participate in the rulemaking process and comply with the DOD’s eventual cybersecurity changes.”

On Jan. 25, 2023, ABC hosted a webinar, “Cybersecurity Maturity Model Requirements for ABC Members Doing Federal Work,” with two cybersecurity experts who provided some practical tips and best practices for businesses to assess their cybersecurity readiness in advance of complying with CMMC 2.0.

Nick Decker, practice leader for the construction industry of Egnyte, an ABC Tech Alliance member, informed webinar participants that the forthcoming CMMC 2.0 policy is expected to affect $2.4 trillion worth of DOD construction contracting opportunities before 2027.

Nick Espinosa, a cybersecurity expert and founder of Security Fanatics––a company dedicated to designing custom cyberdefense strategies for medium to enterprise corporations––presented a thorough “nerd to English translation” of CMMC 2.0 and answered frequently asked questions from DOD contractors about the program and cybersecurity best practices.

Espinosa’s practical tips about how contractors can strengthen cybersecurity policies and prepare for CMMC 2.0 are also of value to contractors who perform construction work for private and federal, state and local government entities.

“CMMC 2.0 experts expect other federal agencies and even state and local governments and private customers to adopt similar cybersecurity requirements in the future,” said Brubeck. “With regulatory change on the horizon and a sharp increase in cybersecurity incidents experienced by public and private contractors, now is the time for all contractors to understand the competitive advantage and other benefits of tackling cybersecurity head on.”

ABC will be rolling out additional resources and educational opportunities on CMMC 2.0 and cybersecurity throughout 2023, including a website solely dedicated to this effort.

 

ABC Members Explore Impact of Construction Technology at Chapter Events

ABC chapters across the country recently hosted events to educate members on the value of construction technology both on and off the jobsite. ABC’s Tech Alliance and Tech Marketplace members were featured speakers at these events.

“Construction technology is advancing quickly and holds great promise for all construction companies,” said Matt Abeles, ABC’s vice president of construction technology and innovation. “It’s important for our members to attend these events so they can physically see and feel how tech can help them develop people, win work and deliver that work safely, ethically and profitably.”

On June 23, the ABC Chesapeake Shores, Greater Baltimore, Metro Washington and Virginia chapters came together for a Joint Tech Summit in the Baltimore area. More than 200 attendees had the opportunity to meet, collaborate and learn how technology is revolutionizing the construction industry and how it can improve their businesses. Keynote speaker Nick Espinosa of Security Fanatics spoke on cybersecurity, and ABC strategic partner Milwaukee Tool and ABC Tech Alliance members Tenna, Autodesk Construction Cloud and Safesite were just some of the many exhibitors.

ABC Southern California hosted a similar event for members at its first-ever Construction Tech Conference on June 9. More than 75 attendees listened to keynote speaker Bridget Proulx of Autodesk discuss modular construction and heard local experts’ insights on construction safety technology, tech planning and preconstruction.

On May 25, ABC’s Keystone Chapter hosted Technology Day featuring sessions from ABC Tech Alliance members KPA and BuildOps and a keynote speech from ABC Tech Alliance member SMARTBUILD on construction culture and use of technology. There was also a hands-on demonstration of construction robotics for the more than 50 attendees.

ABC members at the events learned:

• How to implement and adopt technology to increase profitability;

• How safety technology can make jobsites and people safer; and

• The importance of modular construction.

    

Later this year, ABC’s Central Florida Chapter will be hosting its own construction technology event, and the ABC East Florida, Northern California and TEXO chapters are planning construction technology events in early 2023.

If you have any questions about attending one of the upcoming events, please contact Matt Abeles or Josef Burkart.