Success Stories
Red Rock Mechanical
Started in Las Vegas in 1999, Red Rock Mechanical provides heating, ventilation, and air conditioning (HVAC) services for commercial and residential construction. The company has approximately 300 employees and maintains offices in Las Vegas, Nevada and Phoenix, Arizona. Greg Orr tells how Maxwell Systems™ American Contractor™ efficiently controls payroll for both Red Rock Mechanical offices.
“If all you did with American Contractor was payroll, it would still pay for itself.”
Challenges
Efficiently manage its 300-employee payroll in-house for the company’s two divisions that are located in different states.
Solution
Red Rock Mechanical chose American Contractor Payroll to streamline its payroll processing. This industry-specific application also helps the company track actual job costs with payroll information.
Results
American Contractor helps Red Rock Mechanical manage payroll in-house for its multi-state operations, saving time and money for this Nevada-based HVAC company. The full-featured Payroll component is easy to use, easy to learn, and built especially for contractors.
Significant Savings with In-House Payroll
If you ask Greg Orr, Controller at Red Rock Mechanical (RRM), what he thinks is the best part of processing payroll with American Contractor, he’ll tell you it’s “fast, accurate, and all done in-house.” Orr, who oversees payroll for Red Rock Mechanical, attributes significant cost savings to managing payroll in-house. He estimated that Red Rock Mechanical saves in excess of 10%, which is the surcharge of many outside payroll service providers, using American Contractor Payroll.
“If all you did with American Contractor was Payroll, it would still pay for itself,” Orr said. “American Contractor is custom-made for contractors.”
Bridging the Multi-State Payroll Gap
With almost identical organizations in Las Vegas and Phoenix, Red Rock Mechanical has a unique payroll challenge. With American Contractor Payroll, all payroll processing can be handled in one office in just a matter of days. This includes payroll processing for subsidiary companies owned by RRM.
“Now we’re able to save [outsourced] processing fees on a monthly basis and process efficiently for two different states,” said Orr. “We also save money because Red Rock Mechanical doesn’t need to have a payroll clerk in two different states. One payroll manager can efficiently handle payroll for the entire company.”
Determining Actual Job Costs with Payroll Data
An added benefit of American Contractor Payroll, according to Orr, is the ability to determine the actual cost of each project with payroll processing that integrates with job cost accounting.
“By doing payroll in-house, you are able to scrutinize how much labor is going into each one of your jobs,” said Orr. “In American Contractor, you know exactly who’s working on a job, for how long, who’s being productive and who’s not. Payroll helps us make sure that all labor costs are properly applied to job costs.”
Favorite Features of American Contractor Payroll
American Contractor Payroll includes everything needed to process and report construction payrolls. This robust component helps contractors record work and calculate earnings, benefits, fringes, insurance liabilities, taxes, and more. “American Contractor Payroll is a full-service application,” said Orr. “It’s got everything you need to get the job done.” Orr appreciated that data entry is fast and efficient with “hot button” features that help payroll clerks quickly complete their tasks.
Specific construction industry features also contribute to payroll efficiencies for Red Rock Mechanical. Orr said that certified payroll reporting is a “snap” and piece rate pay saves time for the new construction side of Red Rock Mechanical.
“American Contractor Payroll helps us control and improve efficiency with piece rates. All you have to do is enter the job number for a particular house, for example, and the piece rate is applied,” Orr explained. “It’s very convenient to use piece rates that are programmed into job budgets.”
For repairs and maintenance, Red Rock Mechanical uses the American Contractor Work Order component. The work order labor information is automatically used in Payroll, which eliminates any additional data entry. “Basically the service department accomplishes their own payroll,” Orr said. “For example, if Bill spent an hour fixing Ms. Jones’ furnace, that hour is automatically inserted into Bill’s timecard for the day. It’s very fast and very efficient.”
Minimal Learning Curve for American Contractor
One of the greatest benefits of American Contractor is the ease of use and minimal learning curve. New payroll clerks can be brought up to speed on American Contractor in no time at all with the tutorials and online help provided with the system.
“Employees who are familiar with computerized payroll find it very user-friendly,” Orr said. And when employees need help, Orr said that they turn to the Customer Zone, which is a comprehensive collection of answers for productrelated questions. “It’s a beautiful thing—very quick and reliable,” he said. “I encourage employees to refer to it for instant answers to their questions.”
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