Case Study

HUB Prevailing Wage Solutions Helped a Construction Contractor Save $1.32M and Enhance Benefits for Employees

HUB Prevailing Wage Solutions Helped a Construction Contractor Save $1.32M and Enhance Benefits for Employees

A multi-generation heavy highway contractor in NY/PA, with 90% of work under Davis-Bacon/prevailing wage rules, was incurring a 30% payroll burden—$1.32M a year—by paying $4.4M of fringe as wages. HUB Prevailing Wage Solutions implemented a trust-based fringe restructure for 200 employees, eliminating the $1.32M in payroll taxes/fees (~$6,600 per employee). The plan now funds 12 months of health coverage (avoiding COBRA during seasonal layoffs), maintains a 10% profit-sharing contribution, and adds supplemental unemployment benefits that boosted layoff income fivefold. Results: major cost savings, stronger employee security, and more competitive bids on government contracts.

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