CE 503 Lecture 8,9 Labor Costs & Estimates

Base Wage

The minimum hourly wage that workers are paid for their labor, excluding additional compensation such as overtime

• is competitive & based on location

Social Security & Medicare Tax

Employer: 7.65% deduction of total wage (base + OT)

Employee: additional 7.65%

*Collected by federal goverment

Unemployment Compensation Tax

A state tax paid to provide temporary financial assistance to unemployment. The rate (1-4%) varies; the more constant employment is, the lower the rate will be

Public Liability & Property Damage Insurance

Coverage for damages caused during construction

• employer pays $2-6 per $100 of base wage for each laborer

Worker Compensation Insurance

Insurance that provides wage replacement and medical benefits to workers/dependents injured on the job site

• $8-10 per $100 of base wage

Fringe Benefits

Additional benefits provided to employees beyond their regular wages, such as health insurance, retirement plans, and paid time off

• $10-20 per $100 of base wage

What an estimate depends on:

1. purpose (economic viability & bid submission)

2. time and resources available

3. amount of details available when preparing the estimate

Steps to prepare an Estimate for Bid Submission

1. site visit

2. establish a method of construction

3. develop schedule

4. quantity take-off

5. estimate cost

6. risk assessment