PREVAILING WAGE, CERTIFIED PAYROLL, DAVIS-BACON

PREVAILING WAGE PAYROLL INTEGRATION.

QUICK ANSWER

Prevailing wage compliance and job costing shouldn't live in separate systems. SPM connects your prevailing wage payroll directly to ControlQore so certified payroll reports, fringe benefit tracking, and true labor cost flow into your job costing automatically, with no manual reconciliation, no audit exposure from mismatched data, and no separate spreadsheet. The integration works through vetted payroll partners at additional cost, because SPM doesn't process payroll.

Prevailing wage work has three moving parts a standard payroll setup doesn't handle. There's the wage determination for the classification and the project location, the fringe contribution and whether it's paid in cash or into a qualifying plan, and the apprenticeship ratio on the crew. All three change your labor cost per hour, and all three have to be inside job costing or the job cost is fiction. Most contractors keep them in spreadsheets beside the financial system, which is why the certified payroll report and the job cost report never agree with each other.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-10-19
THE DEFINITION

WHAT IT MEANS.

Prevailing wage payroll integration is a direct data link that moves certified payroll data, fringe contributions, and true labor cost out of the payroll system and into job costing without manual reconciliation.

Prevailing wage is a core specialty at SPM rather than an afterthought, and the majority of SPM clients are prevailing wage contractors. Davis-Bacon, certified payroll, and fringe benefit integration are built into how ControlQore gets set up and how job costing gets structured on every prevailing wage engagement. That is a setup decision made at onboarding, before the first report exists.

WHAT WE SEE IN THIS BUSINESS

THREE SYSTEMS THAT NEVER AGREE.

01

Certified payroll and job costing never reconcile

Prevailing wage contractors process certified payroll in one system and job costing in another. Every week is a manual exercise to match hours to jobs, verify fringe calculations, and produce certified payroll reports that agree with the books. Errors compound and audit exposure grows with every pay period that goes by.

02

Fringe benefit cost is estimated, not real

Most prevailing wage contractors estimate fringe benefit cost in job costing using a blended rate rather than the fringe contributions being paid. The estimate is almost always wrong. Bid margin doesn't match closeout margin because the labor cost basis was different from day one.

03

Davis-Bacon compliance is an administrative burden

Certified payroll reports, apprenticeship ratios, fringe benefit elections, and wage determination tracking add significant administrative load to every prevailing wage project. Most contractors keep all of it in spreadsheets disconnected from the financial system. That means the data is always at risk of not matching when somebody asks.

HOW SPM FIXES IT

ONE SOURCE FOR COMPLIANCE AND COST.

Certified payroll flows into ControlQore automatically

Through vetted prevailing wage payroll partners, certified payroll data moves directly into ControlQore job costing every pay period. Hours, wages, fringe contributions, and apprenticeship ratios all post to the correct job and cost code automatically. There's no manual export and no manual import in between.

Real fringe cost in every job

Your prevailing wage fringe benefit cost, covering the health fund, pension fund, annuity, vacation, and apprenticeship, gets built into ControlQore at the classification level. Every job then uses real fringe cost rather than an estimated burden rate. Bid margin and closeout margin are calculated on the same labor cost basis from day one.

Wage determination compliance built in

Current Davis-Bacon wage determinations are built into your ControlQore job costing by trade classification and project location. Your cost structure stays accurate when a determination updates, because the update happens in one place. Certified payroll reports then always reflect the correct prevailing wage rate.

WHAT YOU GET

THE OUTPUTS, NAMED.

Certified payroll data posting into ControlQore job costing every pay period
Real fringe cost built in at the classification level
Apprenticeship ratios allocated to the job
Davis-Bacon wage determinations by classification and project location
One labor cost basis for the bid and the closeout
$10.7M+
Client AR Recovered Since 2023
48
Active Trade Specializations
60 DAYS
Average Onboarding Time
PRICING

FLAT MONTHLY FEE. NO SURPRISES.

Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing. No payroll. The one-time onboarding fee is right here in the table.

Last 12 months revenueMonthly feeOne-time onboarding
Under $1M$1,900 to $3,300$1,000
$1M to $3.5M$2,600 to $5,300$1,500
$3.5M to $6.5M$3,800 to $8,300$3,000
$6.5M to $9.5M$5,100 to $11,800$4,500
$9.5M to $12.5M$6,100 to $14,900$6,000
$12.5M to $15.5M$7,400 to $17,650$7,500
$15.5M to $18.5M$9,400 to $22,400$9,000
$18.5M+Quoted individuallyQuoted individually

The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers. Your first month is prorated, and your monthly engagement starts on the first of the first full month.

Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.

Core

You stop guessing.

You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions and never in a report.

Your bookkeeper still does the books.

Strategic

Every job shows its margin while it is still open.

Everything in Core, plus the bookkeeping and bank reconciliations done for you, and the job costing and WIP software set up, loaded with your cost codes, and managed every month. Use your own online software, or move to ours and we cover it.

A bookkeeper we choose does the books and reconciliations. No payroll.

Platinum

You approve, and the money side gets handled.

Everything in Strategic, plus a controller we choose who handles your bills and receivables for you the way an in-house controller would. They call vendors, pay the bills and keep the accounting current. We plan the cash flow first, and you approve every payment because it is your money.

A controller we choose does the payables and receivables. No payroll, no pay applications, no collections.

COMMON QUESTIONS

FREQUENTLY ASKED.

No. Prevailing wage payroll integration is available through SPM's vetted payroll partners at additional cost. SPM manages the ControlQore side, which means confirming labor cost flows correctly into job costing and WIP. The payroll partner manages certified payroll, fringe remittances, and compliance reporting.

No. Certified payroll report generation and submission is done by the vetted payroll partner integrated with ControlQore. SPM makes sure the data flows correctly between the systems and that your job cost reflects accurate prevailing wage labor cost. The division of labor is deliberate, because SPM doesn't process payroll.

Federal Davis-Bacon, state prevailing wage laws, union fringe benefit schedules, apprenticeship ratio tracking, cash against qualifying plan fringe elections, and multiple wage determination zones on a single project. Which combination applies depends on the work you pursue and where it is located. Book a call and Josh will ask which ones apply to the work you pursue. Nothing gets sold on it and nothing gets proposed.

Yes, it's a core specialty rather than an afterthought. The majority of SPM clients are prevailing wage contractors. Davis-Bacon, certified payroll, and fringe benefit integration are built into how we set up ControlQore and structure job costing on every prevailing wage engagement.

Three tiers, and which one you are in depends on how much of the work you want off your desk. Core is where you stop guessing: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. Strategic is where every job shows its margin while it is still open: a bookkeeper we choose does the books and the bank reconciliations, and the job costing and WIP software is set up and managed for you, on your own online software or ours. Platinum is where you approve and the money side gets handled: a controller we choose handles your bills and receivables the way an in-house controller would, and you approve every payment. No payroll. No scope gaps.
WHAT THIS TIES INTO
Josh Luebker, SPM The Construction CFO
Josh Luebker
FRACTIONAL CFO · SPM THE CONSTRUCTION CFO

Josh Luebker is a master electrician turned construction CFO, president of SPM The Construction CFO and author of CONTROL: C.F.O.S. Construction Financial Operating System.

DOES YOUR CERTIFIED PAYROLL MATCH YOUR JOB COST?

Josh spends twenty minutes asking how certified payroll gets produced and whether the same hours reach your job cost. There's no pitch and no proposal on that call. When he thinks he can help, you'll book a longer second call.

You don't hire a CFO because it's safe, you do it because the real risk isn't having one.
Book a 20 minute call

20 minutes. Nothing gets sold on this call and nothing gets proposed. Josh asks questions to work out whether he can help at all.

OR GET THE WIP SCHEDULE TEMPLATE. NO CALL NEEDED.