Why wage type matters
Labor is more than the hourly amount paid to a worker. A complete rate may include base wage, fringe benefits, payroll taxes, insurance, union obligations and other employer costs. Using the wrong wage basis can materially distort a bid.
Union labor estimates
Union estimates should reflect the applicable trade agreement, classification, shift, fringe package and working rules. Crew composition and jurisdictional requirements may also affect which workers perform particular tasks.
Prevailing-wage estimates
Public projects may require published wage determinations by trade and location. Estimators should verify the applicable schedule, effective date, fringe treatment and reporting requirements identified in the bid documents.
Non-union labor estimates
Non-union rates still require realistic payroll burden, insurance, supervision, travel and productivity. A low base wage without these costs does not represent the contractor's true installed labor cost.
Production can change with project conditions
Access, phasing, occupied spaces, height, congestion, overtime and material handling influence labor hours regardless of wage type. The estimate should document both the rate and the productivity assumption.
Information to provide your estimator
Share the project location, owner, funding type, wage determination, union requirements, work schedule and anticipated crew approach. When requirements are unclear, carry a documented assumption and obtain clarification before bid day.