As we approach the end of 2025, general contractors face a pivotal moment in prevailing wage compliance. 2026 promises both opportunities and challenges for contractors on public works projects. The decisions you make in these final days of 2025 will determine whether you start the new year scrambling to catch up or confidently pursuing profitable projects.
1. Audit Your Current Certified Payroll Software and Processes
Your certified payroll software that worked in 2023 might already be obsolete. As agencies increasingly mandate electronic submissions and real-time reporting, contractors using outdated systems find themselves locked out of bidding opportunities. Evaluate whether your current certified payroll reporting software can handle the complexities you'll face in 2026, including federal and state projects, varying overtime rules, and integrated subcontractor management.
Look beyond basic functionality. Can your system flag potential violations? Does it produce the government-required payroll forms, including the New WH-347? Modern contractor compliance management software should act as your compliance partner, not just a report generator. If you're still manually calculating fringe benefits or using spreadsheets for certified payroll, 2026 is the year that approach becomes unsustainable.
Schedule demos with multiple vendors before year-end. The transition to new software takes time, and starting in January means you'll be learning a new system while managing active projects. Give your team adequate runway to master new tools before the pressure of project deadlines hits.
2. Strengthen Subcontractor Compliance Oversight
Your subcontractors' compliance failures remain your liability. Develop a formal subcontractor compliance program that goes beyond collecting certified payroll reports. Implement pre-qualification procedures and/or trainings that verify subcontractors understand prevailing wage requirements before they step foot on your jobsite.
Create standardized onboarding packets that clearly explain certified payroll requirements, submission deadlines, and the consequences of non-compliance. Include sample reports, classification guides, and contact information for questions. Many violations occur simply because subcontractors don't understand the requirements, not because they're trying to circumvent them.
Consider investing in contractor compliance solutions that provide automated monitoring of subcontractor submissions. These platforms flag missing reports, payment errors, and suspicious patterns that might indicate worker misclassification. Early detection prevents minor issues from becoming major violations that threaten your entire project.
3. Establish a Record-Keeping System
Agencies can audit projects years after completion, and missing documentation often leads to presumed violations even when you've done nothing wrong. Before 2026, implement a document management system that captures every piece of prevailing wage documentation, from the wage determination(s) to final certified payroll reports.
Digital storage is becoming mandatory in many jurisdictions. Scan all paper documents and organize them in a logical structure that allows quick retrieval during audits. Include not just certified payroll reports but also supporting documentation like timecards, proof of fringe benefit payments, apprenticeship agreements, and correspondence with contracting agencies.
Develop a retention policy that exceeds minimum requirements. Storage is cheap compared to the cost of being unable to produce requested documentation during an investigation.
4. Train Your Team on Compliance Best Practices
Prevailing wage compliance isn't solely a back-office function. Your field supervisors, project managers, and even foremen play crucial roles in maintaining compliance. Schedule comprehensive training before year-end to ensure everyone understands their responsibilities in the compliance chain.
Focus on practical scenarios your team actually encounters. How should they handle a worker who performs multiple classifications in one day? What documentation is needed when an apprentice advances to a higher percentage or level? When can travel time be excluded from prevailing wage requirements? Use real examples from your projects to make the training relevant and memorable.
Document all training thoroughly. Sign-in sheets, training materials, and competency assessments prove your effort to maintain compliance. This documentation becomes crucial if violations occur despite your best efforts.
5. Plan for Emerging Compliance Challenges
The prevailing wage landscape continues evolving, and 2026 will bring new challenges. Prevailing wage compliance requirements increasingly include workforce development goals, local hiring preferences, and apprenticeship utilization mandates. Review upcoming projects for these additional requirements and develop strategies to meet them profitably.
Technology disruptions pose another challenge. As agencies modernize their systems, submission portals change, new authentication requirements emerge, and integration standards evolve. Build flexibility into your compliance processes to adapt quickly when agencies announce changes. Maintain multiple backup methods for submitting reports to avoid late penalties when primary systems fail.
Consider how remote work and flexible scheduling affect certified payroll. With construction workforce patterns changing, you might encounter novel situations not clearly addressed in existing regulations. Develop policies for handling these gray areas consistently while seeking official clarification from agencies.
6. Conduct a Strategic Compliance Assessment
Before pursuing 2026 opportunities, honestly assess your organization's compliance capabilities. Some contractors discover that certain project types or jurisdictions require more compliance resources than the profits justify. Calculate the true cost of prevailing wage compliance for different scenarios, including staff time, software costs, and potential violation risks.
Connect with industry associations and peer contractors to share compliance insights. The contractors who excel at public works projects aren't those who never face challenges, but those who learn from others' experiences. Building a network of compliance-focused contractors provides valuable resources when unusual situations arise.
Position Your Company for 2026 Success
The final days of 2025 offer a crucial opportunity to strengthen your prevailing wage compliance foundation. By taking these six steps now, you avoid the January rush when everyone suddenly realizes they need better systems. More importantly, you position your company to pursue profitable public works projects confidently while competitors struggle with compliance basics.
Remember that excellent prevailing wage compliance isn't about perfection but about having robust systems to prevent, detect, and correct issues quickly. The contractors who thrive in 2026's public works market will be those who invested in compliance infrastructure today.
Take Control of Your Prevailing Wage Compliance
Don't let 2026 catch you unprepared. eMars specializes in helping general contractors navigate complex certified payroll requirements. Our platform handles everything from automated wage checks to subcontractor compliance monitoring, ensuring you never miss a deadline or face unnecessary penalties.
Ready to make 2026 your most successful year? Contact eMars today to schedule a demo and start the new year with confidence.