Companies just like yours save money and keep their workers happy through the PWCA program.

Here are some examples:

"It's just a fact that from time to time we have layoffs. The supplemental unemployment benefit pays the people more money than they could get through payroll!" Patty C. Columbus, OH

"My jobs are very labor intensive and there is just no way I could bid PW jobs and be competitive without the PWCA. Everyone's income is higher, too." Bob B. Pittsburgh, PA

"We use union labor and the workers like getting those checks during the winter. It's a great collective bargaining tool." Sandy C. Morgantown, WV

A True Story - How the Plan Works for You

A contractor named Judy started a subcontracting company six years also. She gathered all her family's available money and took out a second mortgage on her home to come up with the money to get started. All of her jobs were commercial and the wages she paid were what the competition was paying. Since she was a woman, several general contractors urged her to apply for WBE status so she could get in on the public projects, and she did. After three years of doing both private and public projects, however, she was not making any money. After she paid all her bills, she came to understand that the owner really is the last one paid. All the money was gone. Her sister-in-law, a flagger, earned more than she did. Down to five employees, Judy was discouraged and ready to quit.

We met Judy on the phone. After hearing her story, we told her she was losing a lot of money to payroll taxes. When Judy did public works projects, she paid workers both the base rate and the fringe rate as cash wages. While permissible to do so, she was actually paying a bonus on top of regular required wages. It made her bids too high. She did not know the truth about the fringe rate. The fringe rate is built into public works projects at the same rate as the local collective bargaining hourly cost for fringe benefits. Just as a union contractor can expense the fringe rate as a payment for benefits, and not payroll, she should do the same thing. She just needed the right benefit plan.

Since there was a seasonal aspect to her work, we suggested she join the association and adopt its Supplemental Unemployment Benefit plan. Because layoffs were likely in her line of work, the fringe rate could pay for benefits paid to the laid off workers. Because the benefit dollars were not taxed as wages to the workers, they were most likely to have more cash than they would if paid the bonus. She examined the plan, checked our references, ran it by her lawyer, and finally decided to adopt the plan.

The results were immediate. Judy lowered her bids by the payroll tax savings and she became the competition. After three years in the program, she has grown from five employees to over 80! And since she can now get the jobs, everyone's income is up. Like all construction company owners who take all the risks of getting the job done, she deserves to be paid. Now she is!

There is a similar story behind every PWCA member. Give us a call at 1-800-558-5862 or email info@pwca.net and get the facts about doing public works projects.