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Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN).

The National Law Review recently released an article regarding the 2024 Corporate Transparency Act. The article highlights the following:

  • The Corporate Transparency Act, will impose new significant reporting requirements for many U.S. companies starting in 2024
  • Many companies will be required to report and regularly update beneficial ownership information they may not currently possess
  • Companies will need to put in place policies and procedures and likely amend their governing documents to ensure compliance

FinCEN has prepared a Frequently Asked Questions (FAQs) website page in response to inquiries received relating to the Beneficial Ownership Information Reporting Rule.

[/fusion_text][fusion_button link="https://www.natlawreview.com/article/new-corporate-transparency-act-disclosure-requirements-set-2024" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Read the full article[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

" target="_blank">2024 Corporate Transparency Act

Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who [...]

By |2023-09-28T13:48:40-05:00September 28th, 2023|CICPAC, Resources|
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More than 60 issues are covered, including licensing, liens, notice requirements, pay if paid, prompt pay, and prevailing wages. AGC members save 25%. 

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type="flex" hundred_percent="no" hundred_percent_height="no" min_height_medium="" min_height_small="" min_height="" hundred_percent_height_scroll="no" align_content="stretch" flex_align_items="flex-start" flex_justify_content="flex-start" flex_wrap_medium="" flex_wrap_small="" flex_wrap="wrap" flex_column_spacing="" hundred_percent_height_center_content="yes" equal_height_columns="no" container_tag="div" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" spacing_medium="" margin_top_medium="" margin_bottom_medium="" spacing_small="" margin_top_small="" margin_bottom_small="" margin_top="" margin_bottom="" padding_dimensions_medium="" padding_top_medium="" padding_right_medium="" padding_bottom_medium="" padding_left_medium="" padding_dimensions_small="" padding_top_small="" padding_right_small="" padding_bottom_small="" padding_left_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" link_hover_color="" link_color="" border_sizes="" border_sizes_top="" border_sizes_right="" border_sizes_bottom="" border_sizes_left="" border_color="" border_style="solid" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" box_shadow="no" box_shadow_vertical="" box_shadow_horizontal="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index="" overflow="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color="" background_image_medium="" background_image_small="" background_image="" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="center center" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" pattern_bg="none" pattern_custom_bg="" pattern_bg_color="" pattern_bg_style="default" pattern_bg_opacity="100" pattern_bg_size="" pattern_bg_blend_mode="normal" mask_bg="none" mask_custom_bg="" mask_bg_color="" mask_bg_accent_color="" mask_bg_style="default" mask_bg_opacity="100" mask_bg_transform="left" mask_bg_blend_mode="normal" render_logics="" logics="" absolute="off" absolute_devices="small,medium,large" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_background_color="" sticky_height="" sticky_offset="" sticky_transition_offset="0" scroll_offset="0" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" align_self="auto" content_layout="column" align_content="flex-start" valign_content="flex-start" content_wrap="wrap" spacing="" center_content="no" column_tag="div" link="" target="_self" link_description="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" type_medium="" type_small="" flex_grow_medium="" flex_grow_small="" flex_grow="" flex_shrink_medium="" flex_shrink_small="" flex_shrink="" order_medium="0" order_small="0" dimension_spacing_medium="" dimension_spacing_small="" dimension_spacing="" dimension_margin_medium="" dimension_margin_small="" margin_top="" margin_bottom="" padding_medium="" padding_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" hover_type="none" border_sizes="" border_color_hover="" border_color="" border_style="solid" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index_hover="" z_index="" overflow="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color_medium_hover="" background_color_small_hover="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" render_logics="" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" absolute_props="" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transform_origin="" transition_duration="300" transition_easing="ease" transition_custom_easing="" motion_effects="" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" last="true" border_position="all" first="true"][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" logics=""]

The AGC/ABA Construction State Law Matrix  is the most comprehensive and concise resource available for quickly locating information on state laws affecting public or private construction projects.

Updated annually by the American Bar Association Forum on Construction Law, your subscription provides searchable online information for all fifty states, DC, and Puerto Rico, which can be easily sorted by state or topic area.

Don’t bid on another out-of-state project before getting the legal requirements right to price out your bid or proposal!

This essential resource covers 60+ issues from bidding to payment to warranty including:

  • Licensing Requirements
  • Prevailing Wages
  • Pay If-Paid/Pay-When-Paid
  • Bidding Requirements
  • Prequalification
  • Lien Notices and Filing
  • MBE, DBE, WBE
  • Prompt Payment
  • Bond Requirements
  • Design-Build
  • CM At-Risk
  • P3s
  • Statute of Repose
  • Immigration

 

[/fusion_text][fusion_button link="https://store.agc.org/AGC/Store/StoreLayouts/Item_Detail.aspx?iProductCode=8500&CATEGORY=1900&utm_source=informz&utm_medium=email&utm_campaign=store&_zs=6eoMh1&_zl=pBXD9" title="" target="_self" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="fa-arrow-alt-circle-right fas" icon_position="right" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Access the Construction State Law Matrix[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

" target="_blank">Information on State Laws Affecting Construction with AGC/ABA Matrix

More than 60 issues are covered, including licensing, liens, notice requirements, pay if paid, prompt pay, and prevailing wages. AGC members save 25%.  [...]

By |2023-09-28T13:46:50-05:00September 28th, 2023|CICPAC, Resources|
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Article by American Global, published on the IRMI website

While the latter half of 2022 brought some relief from the worst impacts of the global pandemic, supply chain disruptions, labor challenges, and significant commodity price spikes, we are now challenged with a national economy that is dealing with the highest inflation in 40 years. This inflationary pressure and increasing labor costs have caused key central banks to take action to tame inflation, creating the swiftest rise in interest rates in decades, which opens up a real potential for a recession in 2023.

For our industry, the next logical question becomes, "What impacts will this have on the construction community, and specifically, how will sureties react when it comes to underwriting new (and even existing) clients?"

Sections covered in article:

[/fusion_text][fusion_button link="https://www.irmi.com/articles/expert-commentary/surety-outlook-and-underwriting-changes-in-work-in-progress" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Continue Reading[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Surety Outlook and Underwriting Changes in Work-in-Progress

Article by American Global, published on the IRMI websiteWhile the latter half of 2022 brought some relief from the worst impacts of the global pandemic, [...]

By |2023-07-25T15:46:14-05:00July 25th, 2023|AM Whitepaper, CICPAC|
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A look at 10 best practices contractors should be looking at to modernize and stay relevant in this new age of construction Construction projects grow in magnitude and complexity every year, demanding more time, resources and creativity from contractors. The business of  construction used to rely on traditional building processes and tools—pen and paper, faxes, emails, spreadsheets—but these methods can no longer keep up with modern construction’s increasingly complex projects and demands for real-time data and workflows. It took a while for construction management to come around, but now it’s widely accepted that the old ways of doing things just won’t work anymore. Veterans of the industry realize that a tech-focused approach is the only way to complete their projects on time and meet client expectations. This mentality shift has led contractors to:
  • Digitize documentation to cut needless paper out of the equation
  • Implement cloud technologies to instantly share data and streamline workflows
  • Implement modern reporting and data analytics tools for optimized decision-making
  • Use mobile applications to open access to data and improve workflows in the field
  • Add new technologies that automatically complete essential daily tasks, including payroll, HR, invoicing, data collection, and other processes that previously took multiple steps and people to complete
[/fusion_text][fusion_button link="https://cicpac.com/wp-content/uploads/2023/06/10-Construction-Best-Practices_USL_0623.pdf" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color_hover="" hue="" saturation="" lightness="" alpha="" button_gradient_top_color="" button_gradient_bottom_color_hover="" button_gradient_bottom_color="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_hover_color="" accent_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_hover_color="" border_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="20px" margin_right="" margin_bottom="20px" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Continue Reading[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">10 Construction Best Practices You Should Be Doing Right Now

A look at 10 best practices contractors should be looking at to modernize and stay relevant in this new age of construction Construction projects [...]

By |2023-07-25T15:46:20-05:00June 30th, 2023|AM Whitepaper, CICPAC, Construction|
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Tyler Mains, CPA/ABV, Managing Director and Demetri Pazarentzos, Director for their article. Check out bios on Tyler or Demitri via the Lazear Capital Partners website. An Employee Stock Ownership Plan (ESOP) is a great solution for owners of construction companies looking to diversify their personal wealth, develop a succession plan, and/or seek an avenue to reward their employees. However, there are many factors to consider when a company who utilizes bonding is exploring or undertaking an ESOP. Because the surety relationship is vital to the operations and long-term success of many contractors, it is important to partner with the surety early in the ESOP process. The surety is focused on supporting a company’s current and future bonding needs, while reducing or mitigating any potential risk. A leveraged ESOP can cause changes to the structure of a company’s balance sheet as a result of the likelihood of additional debt used to assist in financing the ESOP transaction. If the transaction and associated financing is structured correctly, the perfect balance of financial benefits to company owners, significant upside for key management and employees, and a favorable structure for both the surety and the lender can be achieved. The following items should be considered for companies with surety relationships during an ESOP formation:
  1. Advisors – surrounding the company with knowledgeable advisors who are well-versed in both the construction industry and ESOP transactions is key to ensuring a favorable transaction structure that maximizes benefits for the company owners, while maintaining flexibility for the company post-closing.
  2. Bank and Surety – running a parallel track with open communication to understand each stakeholders concerns or needs (i.e., “giving a seat at the table” early in the ESOP transaction process) leads to a structure that provides adequate financing to consummate the transaction, significant flexibility to support future working capital and capital expenditure requirements of the company, and maintains ample balance sheet strength to support ongoing bonding needs.
  3. Current Bonding Program – evaluating the following items of a company’s bonding program is important to aid in the surety’s analysis of bonding needs moving forward, which can have a significant impact on the surety’s comfort level in regards to balance sheet changes and financing proposed in the ESOP transaction: - Individual and aggregate project bonding limits - Accounts receivable and projects currently bonded (remaining work to be completed vs. total contract value) - Makeup of bonded vs. unbonded projects in backlog and pipeline - The timing and phases of bonded projects (planning/design phase vs. true construction underway) - Current and future working capital and equity levels (as adjusted for specific components found in an ESOP structure)
  4. Managing Personal and Corporate Guarantees – with owners of the company transitioning their ownership to the ESOP trust, special consideration to current and future guarantees required should be discussed during the transaction. An understanding of expectations of the bank or surety regarding guarantees and changes to these requirements (and the timing of these potential changes) is key to mitigating personal exposure for owners who may no longer have an ownership stake in the company.
Overall, a surety is focused on the continuity of the business, with particular attention to adequate financial strength and liquidity and management retention post-ESOP transaction. When structured correctly, an ESOP can be a powerful tool to aide in the long-term succession plan for construction companies and make an extremely positive impact on the lives of employees, key management, and company owners. Additionally, an ESOP-owned company can provide productivity improvements, tax benefits, and a clear competitive advantage in the labor market, all of which can be expected to drive financial performance. Our professionals are here to advise you on structuring a favorable ESOP transaction with lenders and your surety, while maximizing benefits for selling company owners.  " target="_blank">Four Considerations for Construction Companies Exploring or Undertaking an ESOP

Thanks to Tyler Mains, CPA/ABV, Managing Director and Demetri Pazarentzos, Director for their article. Check out bios on Tyler or Demitri via the Lazear Capital [...]

By |2023-05-30T14:08:05-05:00May 30th, 2023|AM Whitepaper, CICPAC, Construction|
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When do Prevailing Wage Laws Apply?

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type="flex" hundred_percent="no" hundred_percent_height="no" min_height_medium="" min_height_small="" min_height="" hundred_percent_height_scroll="no" align_content="stretch" flex_align_items="flex-start" flex_justify_content="flex-start" flex_column_spacing="" hundred_percent_height_center_content="yes" equal_height_columns="no" container_tag="div" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" spacing_medium="" margin_top_medium="" margin_bottom_medium="" spacing_small="" margin_top_small="" margin_bottom_small="" margin_top="" margin_bottom="" padding_dimensions_medium="" padding_top_medium="" padding_right_medium="" padding_bottom_medium="" padding_left_medium="" padding_dimensions_small="" padding_top_small="" padding_right_small="" padding_bottom_small="" padding_left_small="" 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background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" pattern_bg="none" pattern_custom_bg="" pattern_bg_color="" pattern_bg_style="default" pattern_bg_opacity="100" pattern_bg_size="" pattern_bg_blend_mode="normal" mask_bg="none" mask_custom_bg="" mask_bg_color="" mask_bg_accent_color="" mask_bg_style="default" mask_bg_opacity="100" mask_bg_transform="left" mask_bg_blend_mode="normal" render_logics="" absolute="off" absolute_devices="small,medium,large" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_background_color="" sticky_height="" sticky_offset="" sticky_transition_offset="0" scroll_offset="0" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" align_self="auto" content_layout="column" align_content="flex-start" valign_content="flex-start" content_wrap="wrap" spacing="" center_content="no" column_tag="div" link="" target="_self" link_description="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" type_medium="" type_small="" order_medium="0" order_small="0" dimension_spacing_medium="" dimension_spacing_small="" dimension_spacing="" dimension_margin_medium="" dimension_margin_small="" margin_top="" margin_bottom="" padding_medium="" padding_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" hover_type="none" border_sizes="" border_color_hover="" border_color="" border_style="solid" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index_hover="" z_index="" overflow="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" render_logics="" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" absolute_props="" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transform_origin="" transition_duration="300" transition_easing="ease" transition_custom_easing="" motion_effects="" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" last="true" border_position="all" first="true"][fusion_title title_type="text" rotation_effect="bounceIn" display_time="1200" highlight_effect="circle" loop_animation="off" highlight_width="9" highlight_top_margin="0" before_text="" rotation_text="" highlight_text="" after_text="" title_link="off" link_url="" link_target="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" content_align_medium="" content_align_small="" content_align="left" size="2" animated_font_size="" fusion_font_family_title_font="" fusion_font_variant_title_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" hue="" saturation="" lightness="" alpha="" animated_text_color="" text_shadow="no" text_shadow_vertical="" text_shadow_horizontal="" text_shadow_blur="0" text_shadow_color="" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="" margin_right="" margin_bottom="" margin_left="" margin_top_mobile="" margin_bottom_mobile="" gradient_font="no" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" highlight_color="" style_type="default" sep_color="" link_color="" link_hover_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] Wage Determination [/fusion_title][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] How exactly do you know the wage determination for a particular project? One way to find out is by accessing them on the US System for Award Management website – sam.gov or by your specific state’s Department of Labor website. But how are these rates determined, you may ask? The US Department of Labor determines these wages based on surveys of wages and benefits paid in local construction markets. It is important to remember that there are:
  • Significant pay differences between regions
  • One or multiple wage determinations may be assigned to one project
  • Once set, it stays in effect for the duration of the project(s)
Here’s a wage determination example for a Drywall Installer/Lather (Carpenter) in California: [/fusion_text][fusion_imageframe image_id="7001|full" aspect_ratio="" custom_aspect_ratio="100" aspect_ratio_position="" skip_lazy_load="" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" max_width="" sticky_max_width="" align_medium="none" align_small="none" align="center" mask="" custom_mask="" mask_size="" mask_custom_size="" mask_position="" mask_custom_position="" mask_repeat="" style_type="" blur="" stylecolor="" hue="" saturation="" lightness="" alpha="" hover_type="zoomin" magnify_full_img="" magnify_duration="120" scroll_height="100" scroll_speed="1" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="" margin_right="" margin_bottom="" margin_left="" bordersize="" bordercolor="" borderradius="" z_index="" caption_style="off" caption_align_medium="none" caption_align_small="none" caption_align="none" caption_title="" caption_text="" caption_title_tag="2" fusion_font_family_caption_title_font="" fusion_font_variant_caption_title_font="" caption_title_size="" caption_title_line_height="" caption_title_letter_spacing="" caption_title_transform="" caption_title_color="" caption_background_color="" fusion_font_family_caption_text_font="" fusion_font_variant_caption_text_font="" caption_text_size="" caption_text_line_height="" caption_text_letter_spacing="" caption_text_transform="" caption_text_color="" caption_border_color="" caption_overlay_color="" caption_margin_top="" caption_margin_right="" caption_margin_bottom="" caption_margin_left="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"]https://cicpac.com/wp-content/uploads/2023/05/prevailing-wage-chart-determination.png[/fusion_imageframe][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type="flex" hundred_percent="no" hundred_percent_height="no" min_height_medium="" min_height_small="" min_height="" hundred_percent_height_scroll="no" align_content="stretch" flex_align_items="flex-start" flex_justify_content="flex-start" flex_column_spacing="" hundred_percent_height_center_content="yes" equal_height_columns="no" container_tag="div" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" spacing_medium="" margin_top_medium="" margin_bottom_medium="" spacing_small="" margin_top_small="" margin_bottom_small="" margin_top="" margin_bottom="" padding_dimensions_medium="" padding_top_medium="" padding_right_medium="" padding_bottom_medium="" padding_left_medium="" padding_dimensions_small="" padding_top_small="" padding_right_small="" padding_bottom_small="" padding_left_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" link_hover_color="" link_color="" border_sizes="" border_sizes_top="" border_sizes_right="" border_sizes_bottom="" border_sizes_left="" border_color="" border_style="solid" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" box_shadow="no" box_shadow_vertical="" box_shadow_horizontal="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index="" overflow="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color="" background_image_medium="" background_image_small="" background_image="" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="center center" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" pattern_bg="none" pattern_custom_bg="" pattern_bg_color="" pattern_bg_style="default" pattern_bg_opacity="100" pattern_bg_size="" pattern_bg_blend_mode="normal" mask_bg="none" mask_custom_bg="" mask_bg_color="" mask_bg_accent_color="" mask_bg_style="default" mask_bg_opacity="100" mask_bg_transform="left" mask_bg_blend_mode="normal" render_logics="" absolute="off" absolute_devices="small,medium,large" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_background_color="" sticky_height="" sticky_offset="" sticky_transition_offset="0" scroll_offset="0" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="3_5" layout="2_3" align_self="auto" content_layout="column" align_content="flex-start" valign_content="flex-start" content_wrap="wrap" spacing="" center_content="no" column_tag="div" link="" target="_self" link_description="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" type_medium="" type_small="" order_medium="0" order_small="0" dimension_spacing_medium="" dimension_spacing_small="" dimension_spacing="" dimension_margin_medium="" dimension_margin_small="" margin_top="" margin_bottom="" padding_medium="" padding_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" hover_type="none" border_sizes="" border_color_hover="" border_color="" border_style="solid" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index_hover="" z_index="" overflow="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" render_logics="" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" absolute_props="" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transform_origin="" transition_duration="300" transition_easing="ease" transition_custom_easing="" motion_effects="" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" last="false" border_position="all" first="true" spacing_right=""][fusion_title title_type="text" rotation_effect="bounceIn" display_time="1200" highlight_effect="circle" loop_animation="off" highlight_width="9" highlight_top_margin="0" before_text="" rotation_text="" highlight_text="" after_text="" title_link="off" link_url="" link_target="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" content_align_medium="" content_align_small="" content_align="left" size="2" animated_font_size="" fusion_font_family_title_font="" fusion_font_variant_title_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" hue="" saturation="" lightness="" alpha="" animated_text_color="" text_shadow="no" text_shadow_vertical="" text_shadow_horizontal="" text_shadow_blur="0" text_shadow_color="" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="" margin_right="" margin_bottom="" margin_left="" margin_top_mobile="" margin_bottom_mobile="" gradient_font="no" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" highlight_color="" style_type="default" sep_color="" link_color="" link_hover_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] Fringe Dollar Allocation [/fusion_title][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] It’s important to know that there are four legal uses of fringe dollars:
  • Health and Welfare / Ancillary Benefits
  • Health and Welfare includes:
    • Fully Insured ACA Health insurance benefits
    • MEC – Minimal Essential Coverage
    • HRA — Health Reimbursement Arrangement
  • Ancillary Benefits include:
    • Group Whole or Term Life Insurance
    • Long/Short-Term Disability
    • AD&D
  • Pension and Retirement, such as a 401(k)
  • Vacation and Holiday
  • Qualified Approved Apprenticeship Plan
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z_index="" overflow="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" render_logics="" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" absolute_props="" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transform_origin="" transition_duration="300" transition_easing="ease" transition_custom_easing="" motion_effects="" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" last="true" border_position="all" first="false"][fusion_imageframe image_id="7002|full" aspect_ratio="" custom_aspect_ratio="100" aspect_ratio_position="" skip_lazy_load="" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" max_width="" sticky_max_width="" align_medium="none" align_small="none" align="none" mask="" custom_mask="" mask_size="" mask_custom_size="" mask_position="" mask_custom_position="" mask_repeat="" style_type="" blur="" stylecolor="" hue="" saturation="" lightness="" alpha="" hover_type="none" magnify_full_img="" magnify_duration="120" scroll_height="100" scroll_speed="1" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="30px" margin_right="" margin_bottom="" margin_left="" bordersize="" bordercolor="" borderradius="" z_index="" caption_style="off" caption_align_medium="none" caption_align_small="none" caption_align="none" caption_title="" caption_text="" caption_title_tag="2" fusion_font_family_caption_title_font="" fusion_font_variant_caption_title_font="" caption_title_size="" caption_title_line_height="" caption_title_letter_spacing="" caption_title_transform="" caption_title_color="" caption_background_color="" fusion_font_family_caption_text_font="" fusion_font_variant_caption_text_font="" caption_text_size="" caption_text_line_height="" caption_text_letter_spacing="" caption_text_transform="" caption_text_color="" caption_border_color="" caption_overlay_color="" caption_margin_top="" caption_margin_right="" caption_margin_bottom="" caption_margin_left="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"]https://cicpac.com/wp-content/uploads/2023/05/prevailing-wage-chart-money.png[/fusion_imageframe][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type="flex" hundred_percent="no" hundred_percent_height="no" min_height_medium="" min_height_small="" min_height="" hundred_percent_height_scroll="no" align_content="stretch" flex_align_items="flex-start" flex_justify_content="flex-start" flex_column_spacing="" hundred_percent_height_center_content="yes" equal_height_columns="no" container_tag="div" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" margin_top_medium="" margin_bottom_medium="" margin_top_small="" margin_bottom_small="" margin_top="" margin_bottom="" padding_top_medium="" padding_right_medium="" padding_bottom_medium="" padding_left_medium="" padding_top_small="" padding_right_small="" padding_bottom_small="" padding_left_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" link_hover_color="" link_color="" border_sizes_top="" border_sizes_right="" border_sizes_bottom="" border_sizes_left="" border_color="" border_style="solid" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" box_shadow="no" box_shadow_vertical="" box_shadow_horizontal="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index="" overflow="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color="" background_image_medium="" background_image_small="" background_image="" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="center center" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" pattern_bg="none" pattern_bg_style="default" 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animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] Bona Fide Trust [/fusion_title][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] A contractor’s prevailing wage obligation may be met by any combination of cash wages and creditable “bona fide” fringe benefits provided for a covered worker. (Found in DOL, 29 CFR 5.26) This means that fringe benefits (other than cash) must be made to a trustee and/or third person irrevocably and must be under a fund, plan, or program. This “third person” or “trustee” cannot be affiliated with the contractor or subcontractor and must assume the fiduciary responsibility imposed upon trustees by applicable law. 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linear_angle="180" background_color_medium="" background_color_small="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" 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loop_animation="off" highlight_width="9" highlight_top_margin="0" before_text="" rotation_text="" highlight_text="" after_text="" title_link="off" link_url="" link_target="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" content_align_medium="" content_align_small="" content_align="left" size="2" animated_font_size="" fusion_font_family_title_font="" fusion_font_variant_title_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" hue="" saturation="" lightness="" alpha="" animated_text_color="" text_shadow="no" text_shadow_vertical="" text_shadow_horizontal="" text_shadow_blur="0" text_shadow_color="" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="" margin_right="" margin_bottom="" margin_left="" margin_top_mobile="" margin_bottom_mobile="" 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[/fusion_title][fusion_builder_row_inner][fusion_builder_column_inner type="2_3" layout="2_3" align_self="auto" content_layout="column" align_content="flex-start" valign_content="flex-start" content_wrap="wrap" spacing="" center_content="no" column_tag="div" link="" target="_self" link_description="" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" type_medium="" type_small="" order_medium="0" order_small="0" dimension_spacing_medium="" dimension_spacing_small="" dimension_spacing="" dimension_margin_medium="" dimension_margin_small="" dimension_margin="" padding_medium="" padding_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" hover_type="none" border_sizes="" border_color_hover="" border_color="" border_style="solid" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" z_index_hover="" z_index="" overflow="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color_medium="" background_color_small="" background_color_hover="" background_color="" background_image_medium="" background_image_small="" background_image="" background_image_id_medium="" background_image_id_small="" background_image_id="" lazy_load="avada" skip_lazy_load="" background_position_medium="" background_position_small="" background_position="left top" background_repeat_medium="" background_repeat_small="" background_repeat="no-repeat" background_size_medium="" background_size_small="" background_size="" background_custom_size="" background_custom_size_medium="" background_custom_size_small="" background_blend_mode_medium="" background_blend_mode_small="" background_blend_mode="none" render_logics="" sticky="off" sticky_devices="small-visibility,medium-visibility,large-visibility" sticky_offset="" absolute="off" absolute_props="" filter_type="regular" filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transform_origin="" transition_duration="300" transition_easing="ease" transition_custom_easing="" motion_effects="" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset="" last="false" border_position="all" first="true" spacing_right=""][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] First, let’s define “labor burden.” Labor burden is what you pay above and beyond wages in salaries in the form of payroll taxes (FICA), unemployment taxes, and insurance premiums to pay your employees their hourly wage. (The labor burden rate is paid by the company but is not paid to the employees.) Let’s say you’re working on a new prevailing wage project with a base wage of $47 and a fringe benefit of $21. If we pay as cash through payroll, we pay the labor burden on the $68, which is $20.40 resulting in a total of $88.40 an hour. If we pay only the base wage of $47 through payroll and the $21 of fringe to the irrevocable bona fide trust, our labor burden is $14.10 an hour because the $20.40 avoided payroll. We save $6.30 an hour in labor burden. The average company does not do 100% prevailing wage. Let’s look at XYZ Construction, which does 50% prevailing wage work. If we take their savings of $6.30 per hour per employee from above and apply it to 1,040 prevailing wage hours, that’s $6,552 per year. Multiply that by their 25 field employees, and they pocket $163,800 for the year. So, let’s say XYZ Construction wants to look at employee benefits for their field workers. If we multiply that fringe amount of $21/per hour per employee by 1,040 hours (50% PW hours), that comes to $21,840 per year. Multiply that by their 25 field employees and that $546,000. That’s a little more than half a million that can be used to pay for and fund an employee benefit plan (such as retirement, medical, vacation & holiday, or apprenticeship program)! 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filter_opacity_hover="100" filter_blur_hover="0"]https://cicpac.com/wp-content/uploads/2023/05/prevailing-wage-paid-on-check.jpg.png[/fusion_imageframe][/fusion_builder_column_inner][/fusion_builder_row_inner][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type="flex" hundred_percent="no" hundred_percent_height="no" min_height_medium="" min_height_small="" min_height="" hundred_percent_height_scroll="no" align_content="stretch" flex_align_items="flex-start" flex_justify_content="flex-start" flex_column_spacing="" hundred_percent_height_center_content="yes" equal_height_columns="no" container_tag="div" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" margin_top_medium="" margin_bottom_medium="" margin_top_small="" margin_bottom_small="" margin_top="" margin_bottom="" padding_top_medium="" padding_right_medium="" padding_bottom_medium="" 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filter_hover_element="self" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" transform_type="regular" transform_hover_element="self" transform_scale_x="1" transform_scale_y="1" transform_translate_x="0" transform_translate_y="0" transform_rotate="0" transform_skew_x="0" transform_skew_y="0" transform_scale_x_hover="1" transform_scale_y_hover="1" transform_translate_x_hover="0" transform_translate_y_hover="0" transform_rotate_hover="0" transform_skew_x_hover="0" transform_skew_y_hover="0" transition_duration="300" transition_easing="ease" scroll_motion_devices="small-visibility,medium-visibility,large-visibility" animation_type="" animation_direction="left" animation_speed="0.3" animation_delay="0" animation_offset="" last="true" border_position="all" first="true"][fusion_title title_type="text" rotation_effect="bounceIn" display_time="1200" highlight_effect="circle" loop_animation="off" highlight_width="9" highlight_top_margin="0" before_text="" rotation_text="" highlight_text="" after_text="" title_link="off" link_url="" link_target="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" content_align_medium="" content_align_small="" content_align="left" size="2" animated_font_size="" fusion_font_family_title_font="" fusion_font_variant_title_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" hue="" saturation="" lightness="" alpha="" animated_text_color="" text_shadow="no" text_shadow_vertical="" text_shadow_horizontal="" text_shadow_blur="0" text_shadow_color="" margin_top_medium="" margin_right_medium="" margin_bottom_medium="" margin_left_medium="" margin_top_small="" margin_right_small="" margin_bottom_small="" margin_left_small="" margin_top="" margin_right="" margin_bottom="" margin_left="" margin_top_mobile="" margin_bottom_mobile="" gradient_font="no" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" highlight_color="" style_type="default" sep_color="" link_color="" link_hover_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] Contact Beneco [/fusion_title][fusion_text columns="" column_min_width="" column_spacing="" rule_style="" rule_size="" rule_color="" hue="" saturation="" lightness="" alpha="" content_alignment_medium="" content_alignment_small="" content_alignment="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" margin_top="" margin_right="" margin_bottom="" margin_left="" fusion_font_family_text_font="" fusion_font_variant_text_font="" font_size="" line_height="" letter_spacing="" text_transform="" text_color="" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""] If you would like to learn more about the Davis-Bacon Act, prevailing wage, or how to maximize your prevailing wage dollars and save money with an employee benefits package explicitly built for contractors (while staying compliant), reach out to the Beneco Team. We can help you without any commitment, but we can create a plan if you choose! [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Building a Strong Foundation with Prevailing Wage Basics

The infrastructure bill has sparked a surge in public works projects, presenting a prime opportunity for growth and allowing contractors to expand their businesses [...]

By |2023-07-25T15:46:27-05:00May 12th, 2023|CICPAC|
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Maintaining profits and keeping jobs on track is not easy in the construction industry. There are bills to pay, materials to order, teams to manage, and everything else in between. That’s why you need accurate, real-time Work in Progress (WIP) reports to keep projects running smoothly—and to grow your
bottom-line profit.

So, how does it all work? We’ll deep-dive into all there is to know about WIP reporting and how you can set your projects and business up for success.

In this white paper from Deltek ComputerEase, explore:

  • Whta is Work in Progress
  • Overbilling Versus Underbilling
  • What Should a WIP Report Include?
  • How Often Should You Run a WIP Report?
  • Automation of Work in Progress
  • How to Create an Accurate WIP Report
  • What steps do you need to take to achieve accurate WIP Reporting?
  • Common WIP Report Mistakes to Avoid
  • How to Compare and Analyze WIP Report from Different Time Periods
  • How Construction  Accounting Software Can Help
[/fusion_text][fusion_button link="https://cicpac.com/wp-content/uploads/2023/03/Deltek_ComputerEase_How_Work_in_Progress_Can_Work_for_You.pdf" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color="" hue="" saturation="" lightness="" alpha="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_color="" accent_hover_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_color="" border_hover_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Download White Paper[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">How Work in Progress (WIP) Can Work for You

Maintaining profits and keeping jobs on track is not easy in the construction industry. There are bills to pay, materials to order, teams to manage, [...]

By |2023-07-25T15:46:34-05:00March 28th, 2023|AM Whitepaper, CICPAC|
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Written by Dave McGuire, Shareholder, McGuire Sponsel The Energy Policy Act of 2005 established certain incentives for building energy efficient buildings. These included the 45L tax credit for the construction of energy efficient single-family homes, and the 179D deduction for the construction of other energy efficient properties. Since 2005, very little has changed with these provisions other than extensions to allow businesses to continue to benefit from these tax provisions. In 2022, the Inflation Reduction Act (IRA) drastically changed not only the amount of these benefits, but also some of the underlying calculations associated with the incentives. To understand the changes to 179D, let’s first start with the rules prior to the IRA. Prior to the IRA companies building energy efficient buildings were allowed a deduction of up to $1.80/sf (adjusted for inflation). To take this deduction, the building was compared to the ASHRAE 90.1-2007 standard, if the building reduced the energy consumption by 50 percent as compared to the standard a company was allowed a full deduction. Additionally partial deductions of $0.60/sf were allowed for reductions in energy consumption across the building envelope, lighting system, or mechanical systems. Finally in the case of government owned buildings that qualified, the government agency could transfer the deduction to the designer “primarily responsible for the energy efficient design.” This means architects and engineers designing government buildings were also eligible for this deduction. The IRA changed this deduction in three ways. First it changes the calculation. Instead of partial deductions for each building system the deduction is changed to a calculation based on reducing the energy consumption of the building by at least 25 percent. The new law also increases the ability to transfer the deduction. Now in addition to government buildings having the ability to transfer the deduction to the designer, the ability has also been provided to tax-exempt organizations. This means private colleges, churches, and other tax-exempt entities can transfer the deduction to the person responsible for the energy efficient design. Finally, the amount of the deduction is changed from $1.80/sf to a sliding scale from $0.50/sf to $1.00/sf. Many people may understand the change to the amount of the deduction above and be confused as many of the bill’s proponents have touted that it increases the amount of the deduction. That is because the bill introduces a concept where deductions and credits are increased if the company involved pays “prevailing wages”. Under this rule, if a company pays the prevailing wages detailed on the sam.gov website, they can multiply their deduction by 500 percent. This means that if prevailing wage requirements are met the deduction amount goes up to $2.50 to $5.00/sf. However, for many businesses the prevailing wage requirements may be hard to meet as it applies to all contractors working on the property, this would include painters, landscapers, and other unskilled trades. The other real estate related tax incentive included in this bill is an extension and change to the 45L tax credit. The 45L tax credit had expired at the end of 2021, but this law extends the existing tax credit through 2022 and modifies it for years 2023 through 2032. The existing law, in place through the end of 2022, allows for a $2,000 per unit tax credit for the construction of low-rise residential construction. This includes new homes, apartments, and even assisted living facilities if they are three stories or less above grade. To take this credit, the home had to be 50 percent more efficient than the International Energy Conservation Code (IECC). Starting in 2023, the 45L credit changes drastically. First, instead of being tied to the IECC code, the credit is now tied to Energy Star. Second the credit amount is now adjusted as follows:
  • Single Family Homes Meeting Energy Star Single Family Home Standard - $2,500
  • Single Family Homes Certified as Zero Energy Ready - $5,000
  • Multifamily Homes meeting Energy Star Multifamily New Construction - $500*
  • Multifamily Homes meeting Energy Star Zero Energy Ready Multifamily - $1000*

*Multifamily homes receive a 500% increase if prevailing wage requirements are met

The new requirement to tie the credit to energy star raises many questions. First it relates to the three-story requirement. Under the old rules, homes were limited at three stories or less above grade, this was based on the standards under the IECC code. Energy Star does not have the same three-story limitation; however, they do split multifamily into multifamily high rise, midrise, and low rise. The IRS has still not confirmed if the three-story limitation still applies. The bigger issue with energy star is that it cannot be done after the fact based on the current standards. Under the old rules most developers would complete a project, then ask a 45L certification company to confirm the benefit. However, energy star requires that the contractor be working within the energy star requirements from the beginning. This may exclude developers from taking the deduction until they work to become energy star certified. Finally, the limitation of $500 for multifamily when prevailing wages are not met, may limit the applicability to many companies, as the cost to certify and claim the credit may outstrip the benefit. As evidenced above the changes to 179D and 45L are significant and confusing. It is critical that taxpayers talk to professionals who are versed in these changes to ensure that they have access to the deductions and credits moving forward. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">How the Inflation Reduction Act of 2022 Changed and Modified 179D and 45L

Written by Dave McGuire, Shareholder, McGuire Sponsel The Energy Policy Act of 2005 established certain incentives for building energy efficient buildings. These included the [...]

By |2023-02-28T08:02:48-05:00February 22nd, 2023|AM Whitepaper, CICPAC|
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Alexander Bagne, CPA, JD, MBA, CCSP is the President of ICS Tax, LLC, and an expert in tax planning strategies for real estate investors, architecture and engineering firms, and others within the construction industry. He is a strong proponent of energy efficient construction and has served as the President of the American Society of Cost Segregation Professionals (ASCSP). This article was re-published from ICS-tax.com ‘The Inflation Reduction Act Significantly Changes the 179D Energy Efficient Commercial Building Deduction’" target="_blank">Section 179D Energy Efficient Commercial Building Deduction

The Section 179D Energy Efficient Commercial Building Deduction provides a deduction of up to $1.88 per square foot for both building owners who construct new [...]

By |2023-02-22T16:10:47-05:00September 19th, 2022|AM Whitepaper, CICPAC, Construction|
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The Inflation Reduction Act of 2022, H.R. 5376, signed by President Biden on August 16, 2022, extended the 45L credit for homes sold or leased during 2022 with little modification. Thus, residences sold or leased in 2022 would qualify for the 45L credit using the 2021 energy efficiency standards. However, from January 1, 2023 through December 31, 2032, the Act significantly changes the 45L Energy Efficient Home Credit with new provisions and requirements. Beginning in 2023, the Act provides an increased 45L tax credit of $2,500 for single family and manufactured homes when constructed according to the standards set by the ENERGY STAR Residential New Construction Program or the Manufactured Homes Program.
  • Single-family homes must meet the ENERGY STAR Single Family New Homes Program, Version 3.1 for homes constructed before January 1, 2025 and Version 3.2 thereafter.
  • Manufactured homes must meet the latest ENERGY STAR Manufactured Home National Program requirements as in effect on the latter of January 1, 2023 or January 1 of two calendar years prior to the date the dwelling is acquired.
The Act also provides an even higher 45L tax credit of $5,000 for single family and manufactured homes when they are certified as a DOE Zero Energy Ready Home (ZERH). For multifamily homes constructed after 2022, the Act provides a 45L tax credit of $500 when meeting the ENERGY STAR Single Family New Homes Program or $1,000 when meeting the DOE Zero Energy Ready Home requirements. If prevailing wage requirements are also satisfied, the credit for multifamily homes increases to $2,500 or $5,000, respectively. The table below summarizes the 45L Credit rules beginning in 2023.
Home TypeQualification RequirementPrevailing Wage RequirementCredit Amount
Single Family*EnergyStarNo$2,500
Single Family*ZERHNo$5,000
Manufactured HomeEnergyStarNo$2,500
Manufactured HomeZERHNo$5,000
MultifamilyEnergyStarNo$500
MultifamilyZERHNo$1,000
MultifamilyEnergyStarYes$2,500
MultifamilyZERHYes$5,000
*Single Family includes site-built and modular single family homes, duplexes and townhomes.
The Inflation Reduction Act of 2022 has certainly raised the standards for energy efficient home construction with a persuasive tax credit for the next ten years.
This article was re-published from ICS-tax.com ‘The Inflation Reduction Act: Impact on §45L Tax Credit’

About the Author:

Alexander Bagne, CPA, JD, MBA, CCSP is the President of ICS Tax, LLC and an expert in tax planning strategies for real estate investors and developers. He is a proponent of energy efficient construction and has served as the President of the American Society of Cost Segregation Professionals (ASCSP).
" target="_blank">The Inflation Reduction Act: Impact on §45L Tax Credit

Internal Revenue Code Section 45L provides both single and multifamily homebuilders with a $2,000 tax credit for meeting certain energy saving requirements. However, the 45L [...]

By |2023-02-22T16:10:56-05:00August 19th, 2022|AM Whitepaper, CICPAC, Construction|
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