How Construction Companies Can maximize opportunities with the new infrastructure bill with a PEO
How PEOs Can Help Construction Companies Maximize Opportunities Through the New Infrastructure Package
When President Joe Biden signed the $1.2 trillion bipartisan infrastructure package into law in mid-November 2021, those in the construction industry were undoubtedly looking on with excitement. After all, this type of bill, which will help fund much-needed upgrades to roads, bridges, railroads, airports, broadband services, power grids and other public works, doesn’t exactly come along every day.
The package’s funds, which are largely made up of repurposed Covid relief money and tightened enforcement on gains from cryptocurrency investments, are expected to have a transformational impact at both the local and national level. Aside from simply fixing bumpy roads and replacing old power lines, the law is expected to create more than 600,000 new jobs by 2025 and includes funding and provisions for training programs. Plus, it aims to find ways to attract more women to the construction and trucking industries.
For construction companies looking to grow and expand, the infrastructure package presents an unprecedented opportunity, according to Patrick Moraites, partner, and VP of Tampa-based Axis Group.
“There are going to be so many lucrative projects out there in the next several years,” he said. “The companies that plan ahead and get all their ducks in a row now could very realistically see a big payoff in the future. That’s really exciting.”
However, preparing for the process of bidding on government contracts can be stressful, challenging and time consuming, especially for small business owners who are already juggling dozens of tasks on a daily basis. Additionally, newly formed construction companies that don’t have their insurance squared away can end up being sidelined from the bidding process altogether. So how can companies in the construction industry position themselves to take advantage of the infrastructure bill while continuing to efficiently run their day-to-day operations? The answer could be as simple as hiring a Professional Employer Organization, better known as a PEO.
PEOs, which are single-source providers of integrated business services, allow owners to cost effectively outsource their human resources, payroll and administrative tasks. Additionally, because PEOs are able to leverage economies of scale, they can help businesses secure insurance at competitive and affordable rates.
By combining the extra time gained by offloading back-office responsibilities with the strong insurance benefits and support that come with hiring a PEO, construction companies can put themselves in the driver’s seat when it’s time to bid on a contract. A PEO can:
- Provide female and minority-owned businesses a leg up on the competition. The government mandates that 5% percent of federal contracting dollars are allocated strictly to female and minority owned businesses. Respectively, if a female or minority-owned business is using a PEO, the PEO can help them identify additional contract opportunities to bid on and the PEO will work with them to draft up a strong bid to help influence growth for woman and minority owned businesses across the United States.
- Establish & help with workers’ compensation insurance coverage. Construction companies are required to have workers’ compensation coverage to bid for jobs, however, getting the proper coverage can be a difficult task, especially for startups or new companies without a proven track record. In addition, due to the potential dangers of construction labor, the required insurance coverage can be extremely expensive to start. The good news though, is that PEOs are designed to take on that type of unexperienced risk and provide business owners access and secure affordable coverage utilizing a “pay as you go” policy that can help regulate cash flow.
- Assist with risk reduction. In addition to workers compensation coverage, the PEO will provide expert guidance for risk reduction by creating & implementing safety audits, workplace safety planning, employee training programs, in addition to other procedures that lower the overall risk exposure of that business. These tactics and additional support can reduce the overall likelihood of someone getting hurt on the job and making a claim. The reduction of claims paired with safety implementation resulting in a reduction of the business owner’s overall risk in addition lowing the future cost of the businesses workers compensation coverage premium.
- Promote growth and simplify expansion. If the owner of a construction company discovered a lucrative contract opportunity in a neighboring state, they might not have the insurance required in that state to submit a valid bid. However, a national PEO vendor has the licensing and access to coverage in the continental United States and can help business owners move forward in competing for the contract in the neighboring state without having to deal with the hassle of searching for an additional policy in a new location. PEOs simplify the hiring process as companies scale and help them retain more employees providing your company fortune 500 level employee benefits, HR support, and robust HRIS technology to enhance the employee experience providing transparency & performance for all things employee management.
These are just a few of the reasons that construction companies, especially those that are hoping to cash in on the revenue and growth opportunities that come with the infrastructure plan, should consider hiring a PEO. This is a tremendous opportunity for the construction industry across the map for 2022 and beyond. Enhance your companies’ chances of landing one of the many infrastructure contracts by getting a PEO partner solution through Axis Group today.
Not sure if that’s the right time or the right decision? Curious about which PEO would be best fit? The team at Axis is here to empower you with the information and resources to decide.
“We are more than happy to sit down and discuss your current situation. It’s important for us to learn about your companies’ goals and explain how a our solutions & PEO partners can support you and your business goals,” Moraites said. “If it makes sense, great! If not, that’s fine, too. Your situation and timing won’t always align with solutions. One thing is for certain at the end of the day; We just want to see your business succeed.”
Ready to get started? Contact Axis group today and schedule a consultation.