Service contract Act... - REO Property Preservation Forum
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post #1 of 11 (permalink) Old 05-29-2013, 02:12 PM Thread Starter
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Service contract Act...

If you have a clause in a contract concerning the Service Contract Act. Then you may want to read this...
Especially if the the contract has reached $2500.00

http://www.dol.gov/whd/govcontracts/sca.htm

How do you interpret this?????
Could be interesting to see how this plays out...

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post #2 of 11 (permalink) Old 06-05-2013, 08:01 AM Thread Starter
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Here is a new article on this subject matter...

Folks you really want to take a look at this and if you have done any work in the area mentioned in the articles you really do want to get yourself and your company in front of this......

http://foreclosurepedia.org/why-the-...-contract-act/

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post #3 of 11 (permalink) Old 06-05-2013, 10:34 AM
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Quote:
Originally Posted by Cleanupman View Post
If you have a clause in a contract concerning the Service Contract Act. Then you may want to read this...
Especially if the the contract has reached $2500.00

http://www.dol.gov/whd/govcontracts/sca.htm

How do you interpret this?????
Could be interesting to see how this plays out...
Well, I can tell you, it scares the hell outta me. I'm still not real sure how this will affect the small contractor, but it could bankrupt the entire industry. All the nationals are going to get caught up in this. If they have completed work for FHA/HUD/FMC/FNMA, they are subject to the SCA.

And, if it's proven that all us "independent contractors" are actually employees...whew...we're talking hundreds of millions if not billions of dollars in fines. On a much bleaker note, it's possible, that we, the IC's, may be subject to the SCA. And if that's the case. There will be a large shortage of contractors next year. This will probably bankrupt most of us. Now, these are worst case scenarios, it may not come to pass that they even move this far down the chain, but...

Going to be very very interesting to see just how this goes.
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post #4 of 11 (permalink) Old 06-05-2013, 02:49 PM
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$7.25 per hour?
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post #5 of 11 (permalink) Old 06-05-2013, 03:03 PM
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How is this going to take down the industry?????????

I think your really starting to reach on some of your ideas. If you don't follow the basic rules of running business then you shouldn't be running a business. As far as my understanding of it is basic business 101, and super basic accounting.

The only thing this is going to take out is 1-2 man shows and this will only hurt the regionals because for the most part they use the craiglist hacks. The national don't mess around they want proof of insurances and workers comp and you sign your right away.

In Michigan 90% of this stuff is controlled thru unemployment audits and they happen every year
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post #6 of 11 (permalink) Old 06-05-2013, 03:14 PM
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And you pay your W2 employees government scale wages? And you think all the nationals pay all their W2 employees government scale?

In Michigan (Calhoun Co) it's:
01011 - Accounting Clerk I 13.30
01012 - Accounting Clerk II 14.93
01013 - Accounting Clerk III 17.42
01020 - Administrative Assistant 19.59

11090 - Gardener 15.98
11150 - Janitor 12.95
11210 - Laborer, Grounds Maintenance 13.86
23130 - Carpenter, Maintenance 20.92

And the list goes on. Now that's Calhoun County. Other Counties may have different wage requirements. And, add to the wage per hour, PTO for all 10 National Holidays, plus earned PTO for each year of service.

Like I said, I don't know how far this may go. I don't. But, I can see where it might cost the nationals, and everybody else working under the HUD contracts. You need to be very aware of this development and not take it lightly until we know for sure where it will go.
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post #7 of 11 (permalink) Old 06-05-2013, 03:29 PM
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Davis Bacon doesn't apply to our line of work, we are working on private structures. Davis Bacon applies only to public structures. The loans are owned by HUD, Fannie, Freddie, but the service company is in charge of all the service work.



I personnel pay my employees more than that and I make a very nice profit.

I start all my guys at $15 an hr for labor.


State law you have to provide paid state holidays and paid overtime.

If you want to run a business run it like a business. I think a lot of guys are just buying themselves jobs.

I for one love all this attention and more government control.

As Warren Buffet puts it, you going to see who was skinny dipping when the tide goes out.
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post #8 of 11 (permalink) Old 06-05-2013, 03:41 PM
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You may be OK then. But if any of your "labor" ever swung a hammer- he's a carpenter. If he ever mowed a lawn - he's a gardener. And the pay scale swings for whatever job he's doing at the moment.

And, 10 paid holidays? We do take the basic holidays off. But not Washington's Birthday, MLK Day, Columbus Day, Veterans Day. If you take all these off and pay your employees for these days...more power to ya.

And all this may be a moot point. The SCA may only apply to those signing the HUD contract. But, then again...Obama has to pay for that health care package he's rammed down our throats.
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post #9 of 11 (permalink) Old 06-05-2013, 09:12 PM
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Bama your spot on....

Personally I eagerly await being reimbursed for past chargebacks, my past tax contributions, my health benefits and all the other "lost" employee benefits.
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post #10 of 11 (permalink) Old 06-05-2013, 09:23 PM Thread Starter
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Bama your spot on....

Personally I eagerly await being reimbursed for past chargebacks, my past tax contributions, my health benefits and all the other "lost" employee benefits.
This is exactly what may happen...I really think it will also...remember that the PHMG contract had this clause in it...so if you signed with PKMG and you have generated over 2500...this may very well kick in...the contract is over 2500 then the Service Contract act goes into effect....

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