Building a Culture of Compliance
How Rock Spring Contracting's challenges with wage assurance led to a new way of doing business.
CHALLENGE
There is an absence of transparency and compliance in the multitiered labor environments that dominate the construction industry. Rock Spring Contracting, a large, regional commercial drywall contractor, lacked visibility into the wage assurance practices of its partners. Like many contractors, Rock Spring and it's subcontractors relied on error-prone and inefficient, manual processes to track hours. As a result, the company suffered financial and reputational harm associated with wage theft litigation.
SOLUTION
Rock Spring developed and began using Verfico in late 2020, and since 2021, Verfico has been a critical pillar of their success as a fast-growing business. Verfico provides insight into who is on each and every job site - both in real time and on a historical basis. It automatically reconciles subcontractor payroll, ensuring wage compliance and flagging errors, irregularities, and inconsistencies. Now considered their most valuable and critical technology tool, Verfico is used across several areas of operations including payroll, budgeting, safety, scheduling and subcontractor evaluation.
BENEFITS
Transparency
Rock Spring has visibility into all employees and subcontractors on all jobs at all times. As a result, the company's subcontractors are now 100% compliant with the wage laws.
Protection
Rock Spring has significantly reduced the risk of wage theft litigation - which in the DC area has averaged over $1M in settlement fees alone in the last 5 years (https://oag.dc.gov/). The visibility provided by Verfico also protects them from being overcharged by subcontractors.
Workforce Management
Adoption of Verfico has allowed Rock Spring to more than double their annual revenue with no additional administrative and project management personnel.
"Verfico has been a game-changer for Rock Spring. It has enabled us to create a culture of compliance while growing both our top and bottom lines. Using Verfico has made us more efficient, and it has positively transformed our subcontractor relationships. We are doing the right thing for workers, and reaping the rewards.”
Nick DeSarno
Owner & Co-President
Rock Spring Contracting
