It is always the right time for contractors to plan ahead, develop strategies, and prepare their defense against potential challenges. In the current market, the most concerning challenge facing government contractors is rampant inflation! As contractors plan for how to fight inflation, there is an opportunity to look “under the hood” of their business and come up with strategies to make it through. At Boon, we hope to make our fringe benefit solutions a part of every contractors plan!
The Impact of Inflation on Government Contractors
As inflation occurs, prices go up and up! Contractors feel that impact on both the cost of goods and resources necessary to their contracts, and in the needs and expectations of their employees. Contractors working in construction, primarily Davis-Bacon Act contractors, are facing cost increases in fuel and transport and building materials that may be a stark contrast from the bids they were making six months ago.
Along with the cost of goods, inflation is impacting the cost of labor. In a marketplace that is already tight in the aftermath of COVID-19, employers are hoping to keep costs low for themselves and their employees. Employee retention continues to be a persistent issue, healthcare costs are rising, and inflation is only making the situation more dire.
The Best Contractors Plan for Fighting Inflation
The most direct approach to fighting inflation is cost savings. Contractors should be asking themselves whether or not they are maximizing the health and welfare fringe. As contractors plan to protect themselves from the effects of inflation, digging deeper on how they are spending the fringe and how that decision helps both their bottom line, and their employees will make a massive difference.
The second part of this equation is compliance. The Department of Labor has placed the bulk of their focus on scrutinizing contractor compliance within their bids and in contract performance. As any contractor knows, failure to comply can result in crippling penalties. That’s where we come in.
We act as a niche expert and a compliance resource for our clients. By working collaboratively with contractors and understanding the unique compliance concerns of the space, we design each of our fringe benefit solutions to ease the burden of administration, maintain contract compliance, and offer cost saving advantages.
Compliance and Cost Savings. With a Consultative Approach.
Cost savings are the most crucial factor, as contractors plan for fighting inflation. Finding ways to cut costs and getting the most value out of every dollar available. At Boon, our value is our expertise.
We provide bona fide fringe benefit solutions to our contractor clients, that offer cost savings on payroll taxes and put desirable healthcare benefits within reach of their employees. With 40+ years of niche knowledge of the government contracting space, our experts are prepared to hear each client’s unique challenges and help them to reach their goals.
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