Background

XYZ Electrical Services, employing 80 skilled electricians, frequently undertook federal government projects subject to Davis-Bacon Act requirements. The high prevailing wage rates were straining their budget, limiting their ability to bid competitively on new projects.

Challenge

The management team needed a strategy to lower their labor costs and improve cash flow, all while adhering to federal prevailing wage laws. They were unaware of how benefit contributions could be leveraged to meet these requirements.

Solution

Black Bishop introduced a tailored 401(k) plan that allowed XYZ Electrical Services to credit a portion of the fringe benefit obligations toward retirement contributions. We handled the plan setup, administrative tasks, and compliance checks, making the transition seamless for the company.

Results

• Financial Efficiency: Achieved annual savings of $350,000.
• Competitive Bidding: Enabled the company to offer more competitive bids on government contracts.
• Employee Benefits: Enhanced retirement savings options increased employee retention rates by 20%.