Problem
Growing construction firm won their first prevailing wage covered contract. Being a Davis-Bacon Act covered federal contract, the contractor was required to provide a stipulated amount of prevailing wage to employee job class (carpenter, mason, electrician) and also a fringe benefit component. The contractor had the choice to pay the prevailing wage and the fringe benefit in cash or a combination of wages and benefits. Realizing their employees made less money on their commercial or non-government contracts, the contractor needed a solution to normalize the pay between the contracts while also improving profitability.