Federal Prevailing Wage · Davis-Bacon Act · Certified Payroll · Public Works · Compliance
Federal Prevailing Wage · Davis-Bacon · Certified Payroll · Federal Construction · Compliance
Prevailing Wage on
Federal Projects.
Federal construction projects covered by the Davis-Bacon Act require every subcontractor on the project — regardless of their size or scope — to pay prevailing wages to their workers and submit weekly certified payroll reports. The compliance requirements are specific, the penalties are significant, and the financial implications for bid pricing are material. Here's what you need to know before you bid federal work.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You're Underbidding Federal Work Because You're Not Pricing True Labor Cost
Federal prevailing wage rates are set by wage determinations published by the Department of Labor — and they include both base wage and fringe benefit requirements. The fringe benefit component alone can add $8–$20 per labor hour above base wage. Subcontractors who price federal work at their standard labor rates without adjusting for the wage determination are underbidding and subsidizing every federal project they win.
02
Certified Payroll Compliance Is Creating Administrative Overhead
Weekly WH-347 reports, fringe benefit documentation, apprenticeship ratio tracking, and compliance monitoring for Davis-Bacon projects require administrative infrastructure that private work doesn't demand. Most subcontractors without a dedicated compliance process handle certified payroll reactively — creating liability exposure and consuming disproportionate owner time.
03
You Don't Know the Apprenticeship Ratio Requirements
Davis-Bacon projects typically require a specific ratio of apprentices to journeymen on the project. Working with apprentices at apprentice wage rates rather than journey-level rates reduces your labor cost — but requires a registered apprenticeship program and active ratio compliance. Non-compliance triggers back wage assessments at the journey-level rate for all apprentices who worked without the required ratio in place.
How SPM Fixes It
Pricing Federal Work Correctly
Federal work bids must be based on the wage determination included in the bid documents — not your standard labor rates. True federal labor cost equals: wage determination base rate plus fringe benefit requirement plus payroll taxes on the total wage (FICA, FUTA, SUTA) plus workers comp at the applicable classification rate. SPM builds wage determination rates directly into ControlQore job costing for prevailing wage clients so federal project labor cost is accurately tracked from bid to closeout.
Certified Payroll Integration
Through our vetted prevailing wage payroll partners, certified payroll data flows directly from payroll into ControlQore job costing for SPM clients doing federal work. Weekly WH-347 reports are generated automatically as a byproduct of normal payroll processing. Fringe benefit documentation and apprenticeship ratio tracking are maintained automatically. You meet Davis-Bacon compliance requirements without a separate manual reporting system.
Fringe Benefit Election Strategy on Federal Work
Federal prevailing wage fringe benefits can be paid as cash additions to wages or contributed to qualifying benefit plans. Qualifying plan contributions are not subject to payroll taxes — which makes them less expensive than cash fringes for most subcontractors with large prevailing wage payrolls. SPM analyzes the fringe election strategy for prevailing wage clients to identify the most cost-effective compliance approach for their specific workforce.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Does Davis-Bacon apply to all federal construction projects?
Davis-Bacon applies to federally funded construction contracts over $2,000 for construction, alteration, or repair of public buildings or public works. It also applies to construction funded under many federal assistance programs — including HUD, transportation, and infrastructure programs — through Related Acts (collectively called Davis-Bacon and Related Acts, or DBRA). If you're unsure whether a specific project triggers Davis-Bacon, the bid documents should include a wage determination if it does — and your contracting officer can confirm applicability.
What are the penalties for Davis-Bacon non-compliance?
Davis-Bacon non-compliance penalties include: back wages owed to workers paid below prevailing wage, withholding of contract payments by the contracting agency, contract termination, and debarment from federal contracting for up to three years. For a contractor dependent on federal work, debarment is an existential business risk. Certified payroll compliance is not optional — it's a condition of your right to work on covered projects.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.