Estimate your labor costs for government construction projects. Free calculator with prevailing wage rate estimates by classification and location.
First government bid? Start here.
Bidding on government construction projects requires precise labor cost calculations. Under the Davis-Bacon Act, contractors must pay workers at least the prevailing wage rate for each trade classification, including fringe benefits. Underestimating these costs can mean losing money on the project; overestimating means losing the bid.
This free bid estimator accounts for all major labor cost components: base hourly rates, fringe benefits (health insurance, pension, vacation), employer FICA (Social Security and Medicare), workers' compensation insurance, and more. The default rates are national averages, so adjust them to match your actual prevailing wage determination and insurance costs.
“Labor burden” refers to the employer's costs above and beyond the worker's base wage. This includes FICA taxes (7.65%), workers' comp insurance (varies by trade; roofers and ironworkers pay the highest rates), and fringe benefits. On prevailing wage projects, labor burden can add 25 to 50% on top of the base wage.
This estimator is designed for general contractors, subcontractors, estimators, and project managers bidding on federal Davis-Bacon projects, state prevailing wage projects, or any government-funded construction work. Whether you're a small contractor bidding your first government project or an experienced firm refining your estimates, this tool helps you build accurate labor cost projections in minutes. New to public work? Read the small contractor's guide to government construction bids before you price your first one.
Start with the wage determination for your project's location and construction type, then list every trade classification you will use with worker count, hours per week, and weeks on site. Multiply hours by the base rate for each classification, add fringe benefits, then add employer FICA and workers' comp to get your fully burdened labor cost. This free estimator does that math for you in three steps.
It accounts for the major labor cost components: base hourly rates, fringe benefits (health insurance, pension, vacation), employer FICA (Social Security and Medicare) at 7.65%, and workers' compensation insurance by trade. The default rates are national averages, so adjust them to match your actual prevailing wage determination and insurance costs before you bid.
Labor burden is the employer's cost above and beyond the worker's base wage. It includes FICA taxes (7.65%), workers' comp insurance (which varies by trade, with roofers and ironworkers paying the highest rates), and fringe benefits. On prevailing wage projects, labor burden can add 25 to 50 percent on top of the base wage.
Use the wage determination specific to your project's location and construction type. Account for overtime, since prevailing wage projects require 1.5 times the base rate (not fringe) for hours over 40 per week. Include apprentice ratios if your state allows them. Factor in wage rate escalation on multi-year projects, and pull exact rates from a wage lookup rather than relying on national averages.
General contractors, subcontractors, estimators, and project managers bidding on federal Davis-Bacon projects, state prevailing wage projects, or any government-funded construction work. It works for a small contractor bidding a first government project and for experienced firms refining their estimates.