Industry

Construction HCM where prevailing wage and certified payroll have to land clean.

Custom prevailing wage engineering, certified payroll automation, multi-state DBA compliance, union fringe and dues remittance — we build configurations that survive federal audit and union review at the same time.

Challenges we see

  • Construction workers don't allocate to a single cost center per shift. A worker on a federally-funded jobsite distributes hours across projects, classifications, jurisdictions, and pay rates within a single day. Hours roll up through cost-coded project structure for the general ledger, through Davis-Bacon classifications for federal compliance, through union classifications for fringe contributions, and through state-level prevailing wage variants for rate determinations. Generic HCM was built for workforces where one employee maps to one cost center per pay period. Construction operations don't fit.

    We build HCM configurations where project-based labor distribution flows as native infrastructure, not as a bolted-on cost-allocation step. Hours map to projects, classifications, and jurisdictions during time entry. Rates apply from the right Davis-Bacon, state-level prevailing wage, or union classification at the right granularity. The integration to construction ERP and certified payroll generation pulls clean structured data without per-pay-period reconciliation.

  • Construction prevailing wage compliance has to land cleanly in two different review systems that don't align with each other. Federal Davis-Bacon audit is retrospective and binary: the configuration either survives a Department of Labor inspection or it doesn't. Union representative review is collaborative and ongoing: fringe contributions, dues remittance, and classification accuracy earn confidence through ongoing reporting cadence. Configurations that pass one can fail the other. Generic HCM treats prevailing wage as a single compliance overlay. Construction needs both reviews engineered into the same configuration.

    We engineer prevailing wage configurations to land in both reviews simultaneously. Davis-Bacon classifications, state-level prevailing wage variants, and union fringe rules layer at the configuration layer, not as reporting workarounds. Audit trails encode what federal inspectors and union representatives each need to see, generated from the same source data. Both reviews pull from configurations engineered for the harder test on every rule.

Our expertise

Where the depth comes from

Prevailing wage engineered as configuration

Construction prevailing wage compliance is engineered, not reported. Davis-Bacon classifications, state-level prevailing wage variants, and union fringe rules layer into the pay-rule configuration: wage rates apply by classification and jurisdiction, fringe contributions calculate per trade per remit cycle, and the certified payroll forms required for compliance (federal WH-347 and state-specific variants) generate from the same engine that ran payroll. Audit trails show every rate determination, every classification, and every fringe calculation back to the configuration that produced them. We engineer pay-rule layers that handle the federal × state × union complexity at the configuration depth where it actually lives, not as a reporting overlay reconstructed each pay period.

Integration depth across the construction ERP boundary

Construction operations run on systems generic HCM doesn't natively reach. Construction-specific ERPs (Foundation, Sage 300 CRE, Viewpoint Vista, COINS) own the cost-coded project structure that workforce hours have to roll up into. Project management platforms like Procore own field-level activity data. Specialist compliance tools (LCPtracker, eMars) own certified payroll generation and prevailing wage reporting when clients prefer to handle them outside the HCM. We engineer integration layers that move workforce data across these boundaries cleanly. Hours flow from time entry into the ERP cost structure with project, classification, and jurisdiction tags applied. Certified payroll generation pulls from a single source of truth regardless of which tool produces the final form.

Specialist tools where they fit, custom engineering where they don't

Construction compliance has two viable engineering paths, and we deliver either with depth. When specialist software (LCPtracker, eMars, certified-payroll-specific tools) earns its integration cost, typically because clients run multi-firm prevailing wage portfolios or third-party reporting frameworks make specialist output the path of least friction, we engineer the integration layer that lands clean structured data into the specialist tool from the HCM source of truth. When configuration depth at the HCM layer is the cleaner answer, typically because fringe rules, classification accuracy, and audit trails encode at pay-rule depth without losing fidelity, we engineer those configurations to handle Davis-Bacon, state-level variants, and union fringe rules without specialist-tool overlay. We assess against the operational reality the client actually runs, then engineer the path that fits.

Multi-trade jobsite operating reality

Construction jobsites run multiple trades simultaneously, often under different unions and different prevailing wage rules. A jobsite running concrete, steel, mechanical, electrical, and finish trades may carry separate union contracts for each, separate apprenticeship ratios per trade, and separate fringe contribution structures negotiated independently. Jurisdiction layers on top: federal Davis-Bacon classifications differ by trade, state-level prevailing wage rules vary by jurisdiction, and union locals carry contract terms that change at jurisdictional boundaries. The project + trade × jurisdiction intersection is the operating reality. We configure HCM environments where workers map to multiple union memberships across project assignments, trade classifications resolve to the correct rate at the right jurisdictional layer, and fringe contributions remit per-trade per-cycle without manual reconciliation.

Project-based managed services and stabilization

Construction operational rhythm doesn't follow a fiscal-year cadence. Project ramp-ups bring waves of new hires onto active jobsites, certified payroll cycles run weekly per project per union, and multi-trade compliance reviews cycle on union-specific cadences. We design managed services arrangements scoped against this rhythm. Project ramp-ups carry the right HCM-side workforce setup at the timing field operations actually need. Weekly certified payroll generation runs as an automated process with exception handling for the cases that always come up. Multi-trade compliance reviews coordinate with union representatives, federal inspectors, and state agencies on the cadence each one runs. When stabilization is the engagement shape, typically because a prior implementation didn't engineer prevailing wage cleanly the first time, scope spans HCM configuration, specialist-tool integration, construction ERP cost-flow correction, and the audit-trail rebuild that compliance review requires.

Frequently asked

Questions we hear

When federal Davis-Bacon and state-level prevailing wage rates conflict on the same project, how does RJR's configuration handle the layering?

When a federally funded project sits in a state with its own prevailing wage statute, both Davis-Bacon and the state-level rate apply. The higher rate generally controls: federal Davis-Bacon establishes the floor, the state statute can raise it, and the rate that flows to the worker is the higher of the two for each classification at the project's jurisdiction. We configure pay rules to evaluate funding source, project location, and classification at the time-entry layer, then resolve to the controlling rate without manual reconciliation. Audit trails capture which rate applied and why, classification by classification, so a Department of Labor inspector or a state agency reviewer can trace any check back to the rules that produced it.

What does a typical Construction HCM implementation engagement look like at RJR?

Construction engagements start by inventorying the compliance landscape, not by activating modules. Discovery covers the jobsite portfolio, active collective bargaining agreements in force, federal-vs-state-vs-local prevailing wage jurisdiction mapping across the project mix, and a process audit of how certified payroll runs today. Configuration then layers the pay rules, classifications, and integrations against that landscape. We sequence implementation against project ramp-up rhythm: go-live timing aligns with the start of a certified payroll reporting cycle, not the middle, so the first reportable week runs cleanly. Multi-trade configuration validation runs against actual classification scenarios per trade per state before any federally funded project goes live. When client portfolios span multiple active jobsites with different compliance profiles, rollout phases by jobsite or division so each one stabilizes before the next one cuts over.

Can RJR handle union fringe contributions, dues remittance, and benefit fund reporting in the HCM?

Yes. We configure HCM environments to handle union fringe contributions, dues remittance, and benefit fund reporting at the pay-rule layer. Fringe rules encode per trade per local: cash-on-paycheck where the contract specifies cash delivery, fund-contribution where benefits flow into negotiated trust funds. Dues remit on the schedule each local requires (per-hour, per-week, fixed-amount, or hybrid) with the right calculation per worker per pay period. Benefit fund reporting (health, pension, vacation, and Joint Apprenticeship Training Committee training funds) generates from the same source data as the certified payroll forms. Apprenticeship ratio compliance under Davis-Bacon tracks at the configuration layer, enforcing apprentice-to-journeyman ratios per registered program on a daily compliance basis and flagging when staffing falls out of ratio. The 100+ HCM implementations behind the practice include multi-trade union jobsites with apprenticeship ratios tracked daily, multi-local fringe-fund reporting layered against varying contribution schedules, and federal-state-local prevailing wage stacks resolved at time-entry granularity. Union representatives, fund administrators, and federal inspectors each pull from one configured source, not three reporting reconstructions.

How does certified payroll generation handle a worker whose hours allocate across multiple projects, classifications, and jurisdictions in a single week?

Time entry captures the project, classification, and jurisdiction tags for every block of hours during the week. The pay engine resolves to the correct prevailing wage rate per slice: federal Davis-Bacon, state-level variant, or union classification, whichever controls at that project's jurisdiction. When workers cross classifications during the same shift, blended-overtime calculations required under federal labor law layer on top of the prevailing wage rates, so overtime hours pay the weighted-average rate across classifications worked. Certified payroll forms generate per project per reporting cycle with the worker's hours, classifications, rates, and fringe contributions on each form, every project filed against its own reporting agency in the format that agency requires (federal WH-347, state portals, agency-specific submission systems). The configuration that calculated the pay produces the form.

Can RJR stabilize a construction client's HCM tenant where prevailing wage didn't land cleanly the first time?

Yes. Stabilization scope depends on what didn't engineer cleanly the first time. We diagnose against the actual operational reality: which Davis-Bacon classifications were missed or miscoded, where multi-state prevailing wage variants went stale, whether fringe contributions remit accurately, where certified payroll forms generate with the wrong rates or missing classifications. Re-engineering then layers across the systems involved. HCM configuration corrects pay rules, classifications, and fringe logic at the configuration layer. Specialist-tool integration repoints to the corrected source data. Construction ERP cost-flow correction restores the labor-distribution path to project cost coding. Audit-trail rebuild reconstructs the documentation a Department of Labor inspector or union representative would need to verify compliance going forward. Stabilization closes when the configuration produces clean certified payroll output for a full reporting cycle without manual corrections.

What does a project-based managed services arrangement look like for construction operations?

Project-based managed services for construction track the operational rhythm of the work. RJR's managed-services team handles HCM-side workforce setup when new jobsites ramp up: classifications coded against the project's union contracts, prevailing wage layered for the jurisdiction, HCM-to-construction-ERP integrations wired to project cost coding. Weekly certified payroll generation runs automated, with exception handling for the cases that always come up: workers with hours across multiple projects, late time entries, classification corrections, fringe-rule edge cases. Multi-trade compliance reviews coordinate with union representatives, federal inspectors, and state agencies on the cadence each one runs. Scope expands or contracts with the active project portfolio. Most arrangements settle into a fractional engagement model with named team continuity across the cycle.

What does success look like in a construction HCM engagement?

Success looks like a configuration that produces clean, defensible output every cycle without manual reconstruction. Certified payroll forms generate cleanly each reporting period (federal WH-347 and state variants) with classifications, rates, and fringe contributions tracking back to the configuration that produced them. Multi-trade jobsites run without classification rework: workers map to the right trade, local, and jurisdiction in time entry, and rates flow correctly through to the certified payroll output. Audit trails survive Department of Labor inspection and union representative review without after-the-fact reconstruction. Integration data flow holds across HCM, construction ERP, and certified payroll generation, all pulling from a single source of truth. The weekly certified payroll cycle runs on schedule with multi-trade classifications mapped correctly the first time. Configuration time tracks the project-cycle cadence rather than chasing it, with HCM team cycles spent preparing for the next jobsite ramp-up rather than reconciling last project's certified payroll.

Selected work

Featured case studies

  • A US precast concrete manufacturer

    Custom prevailing wage and certified payroll engineering where specialist software fell short: a US precast concrete manufacturer

    Prevailing wage + certified payroll engine across 5 integrated platforms

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