Construction Industry Guide

Learn about the unique set of human capital management challenges in the construction industry and how IDI's suite of solutions can help meet those needs.

Articles

What is prevailing wage?
If you’re in the construction business and you work on a government project, then you are subject to paying employees the prevailing wage for that job.  The prevailing wage is established by regulatory agencies, including State Department...
What is a fringe rate?
Fringe benefits are additional compensation provided to employees above and beyond an agreed-upon wage or salary.  A fringe rate, or benefit rate, is the cost of an employee's benefits divided by the wages paid to an employee for the hours ...
What is a fringe reduction?
Fringe benefits are additional compensation provided to employees above and beyond an agreed-upon wage or salary.  A fringe rate, or benefit rate,  is the cost of an employee's benefits divided by the wages paid to an employee for the ...
What is a union rate?
A labor or trade union is an organization of workers representing the rights of employees in certain fields and industries by negotiating with employers to protect members' interests.  Each union "collectively bargains" on behalf ...
What is a union benefit rate?
Employees belonging to a union receive mandated benefits defined in the collective bargaining agreement (CBA) that the employer must pay so the employee can obtain health, medical or other benefits.  These benefits may be paid to the employee a...
What is a union deduction?
Employees belonging to a union are subject to mandated deductions as defined in the collective bargaining agreement (CBA) to help fund the management of the union, legal fees for any disputes, training, and other union-sponsored activities.  Th...
What is a Service Contract Act (SCA) wage and fringe rate?
If you’re in the construction business and you do service work on a government-funded project or building, such as a landscaping or cleaning service, then you are subject to paying service employees the contract-mandated wage rate and fringe r...
What is a Certified Payroll project?
Certified Payroll is a common term used for any government funded project that requires Certified Payroll Reports to be submitted to the funding agency.  While most Certified Payrolls are associated with Davis Bacon Act contracts, some unions a...
What Certified Payroll Reports does IDI offer?
For clients in the construction industry that work on government contracts and are subject to providing Certified Payroll Reports to prove compliance IDI has a Certified Payroll Reporting Solution. Below is our alphabetized library of supported rep...
What is a wage determination?
Unlike many industries that pay employees the same rate of pay regardless of work performed, in the construction industry there are several factors that need to be evaluated to ensure the correct rate is used for each hour worked by an employee in o...
What is a highest wage rate policy?
Unlike many industries that pay employees the same rate of pay regardless of work performed, in the construction industry there are several factors that need to be evaluated to ensure the correct rate is used for each hour worked by an employee in o...
What is a Department of Labor violation?
The United States Department of Labor oversees the protection of U.S. workers and enforces labor laws, such as the Davis-Bacon Act and Service Contract Act (SCA).  For example, the Fair Labor Standards Act, part of the Davis-Bacon Act, states t...
What is a FLSA rate?
The Fair Labor Standards Act (FLSA) is part of the Davis-Bacon Act, a labor law enforced by The United States Department of Labor.  The Fair Labor Standards Act states that an employee is entitled to an average of their overall weekly earnings ...
What is daily detail?
For construction companies working on Davis-Bacon Act projects the company agrees to provide Certified Payroll Reports that demonstrate they paid the employees the contract mandated wages and benefits.  The report must be submitted to the gover...
How do construction companies manage job costing?
Job costing is accounting by “job” to track progress and spending throughout the job’s lifecycle.  This involves compiling all of the labor expenses (wages and benefits) and non-labor expenses (equipment, material, etc.) to co...
How do construction companies manage labor burden?
For construction companies, Job Costing is how you measure the true, overall cost of active projects to determine profitability and to make informed decisions when bidding on new contracts.  The job cost consists of all costs to the job includi...
How are ERP systems used by construction companies?
An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage job costing and overall company financials (general ledger, invoicing, accounts payable, etc.).   Common ERPs in the constru...
What is Sage 300 CRE/Timberline?
An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage their job costing and overall company financials (general ledger, invoicing, accounts payable, etc.).   Sage is a leading ER...
What is Acumatica?
An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage their job costing and overall company financials (general ledger, invoicing, accounts payable, etc.).   Acumatica is a fully...
What is Viewpoint?
Viewpoint is a popular ERP in the construction industry.   An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage job costing and overall company financials (general ledger, invoi...
What is Spectrum?
Spectrum is a popular ERP for construction industry.   An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage job costing and overall company financials (general ledger, invoicing...
What is Foundation?
Foundation is a popular ERP in the construction industry.   An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage job costing and overall company financials (general ledger, invo...