The Importance of Prevailing Wage Rates to Owners, Builders, and AE’s

Understanding and having access to current, actionable, prevailing wage rates for your area… AND an using a locally researched unit price book (UPB) with detailed line item cost data are all CRITICAL to REAL PROPERTY OWNERS, BUILDERS, AE’s, and Oversight Groups. These tools provide full financial transparency and greatly enhance the mutual understanding of the planned scope of work.

While depending solely up subcontractor quotes and/or lump sum quotes may be traditional, that doesn’t mean that it is in the best interest of anyone to do so.

Prevailing wage is defined as the hourly wage, usual benefits and overtime, paid to the majority of supervisors, tradesmen, workers, mechanics, and laborers, within a specified geographic area.

Detailed prevailing wage rates are also required by many public sector institutions, while others may required Davis-Bacon wage rates. While not the same, wages for some trades can be similar, with others varying significantly.

Various Government institutions collect and calculate prevailing wage rated differently, thus its important to understand all associated techniques, rules, and regulations. In fact, your construction use requires the use of prevailing wage or Davis-Bacon labor rates, it is likely best to procure them from a professional source.

Using a Unit Price Book enables the development of full transparent, easily communicated, and detailed repair, renovation, maintenance, sustainability, and new construction project costs. This information can be used on its own for used to validate and/or negotiate contractor/subcontractor costs, or used by builders to build and communicate reliable proposals for owners. Proposals the truly reflect owner needs and scope of work. A locally researched detailed line item unit price book (UPB) enables all participants and stakeholders to easily view detailed, verifiable costs for labor, material, and equipment for all relevant construction tasks. A UPB eliminates the sole reliance upon contractor and subcontractor quotes or “back of the envelope” estimates. A locally researched UPB virtually assures a detailed scope of work for each work requirement. One that can be easily documented, understood, and shared with everyone.