At Black Bishop, we take pride in helping medium-sized businesses navigate the complexities of prevailing wage work while maximizing their financial efficiency. Our expertise in setting up properly funded 401(k) plans has enabled our clients to save substantial amounts of money, comply with government regulations, and provide valuable benefits to their employees. Below are some of our success stories that highlight the impact of our services.
These case studies exemplify how Black Bishop empowers medium-sized businesses to achieve financial efficiency while complying with prevailing wage laws. By leveraging properly funded 401(k) plans, our clients not only save money but also invest in their employees’ futures.
Contact us today to discover how we can create a customized solution for your business.
ABC Construction is a medium-sized contractor specializing in public infrastructure projects. With a workforce of 150 employees, they frequently engage in prevailing wage work for state and local government entities. Despite steady business, ABC Construction faced rising labor costs due to prevailing wage requirements, which were impacting their profitability.
The company’s management sought a solution to reduce their cash outlays on wages without compromising compliance with prevailing wage laws. They needed a way to redirect funds efficiently while still meeting the required wage determinations.
Black Bishop collaborated closely with ABC Construction to design a customized 401(k) plan that integrated prevailing wage fringe benefits. By allocating a portion of the fringe benefits into the 401(k) plan, the company reduced immediate cash wage payments. We ensured the plan met all regulatory requirements and provided employee education sessions to facilitate enrollment.
ABC Construction saved over $500,000 in the first year.
Retirement plan participation increased by 75%.
The company remained fully compliant with all prevailing wage regulations.
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.
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.
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.
Achieved annual savings of $350,000.
Enabled the company to offer more competitive bids on government contracts.
Enhanced retirement savings options increased employee retention rates by 20%.
LMN Engineering is a consulting firm with 60 employees, providing services to federal agencies. The firm was experiencing slow growth due to high operating costs associated with prevailing wage obligations.
To fuel expansion, LMN Engineering needed to reduce overhead costs without reducing staff or cutting corners on compliance. They sought expert advice on optimizing their compensation structure.
Black Bishop developed a comprehensive 401(k) plan that integrated prevailing wage fringe benefits. We provided ongoing support and compliance monitoring, ensuring the plan remained advantageous for both the company and its employees.
Lowered labor costs by 15%, freeing up capital for investment.
The company expanded its services to two new federal agencies.
Improved morale and productivity due to enhanced benefits.
