Prevailing Wage Bid Estimator

How to Estimate Prevailing Wage Labor Costs for Your Bid

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.

What This Calculator Includes

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 — adjust them to match your actual prevailing wage determination and insurance costs.

Understanding Labor Burden

“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 25-50% on top of the base wage.

Tips for Accurate Prevailing Wage Bids

• Always use the wage determination specific to your project's location and construction type.
• Account for overtime — prevailing wage projects require 1.5x the base rate (not fringe) for hours over 40/week.
• Include apprentice ratios if your state allows them — apprentice rates are lower but must meet minimum requirements.
• Factor in wage rate escalation for multi-year projects — rates can change during the project duration.
• Use our free Wage Rate Lookup tool to find the exact prevailing wage rates for your project area.
• Need per-worker pay with fringe and overtime? Use our Prevailing Wage Calculator.

Who Should Use This Tool?

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.