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Estimating Wage Rates

NOTE-- In 2000 we retired MacNail and BidMagic (our previous estimating programs), and replaced them with Goldenseal construction estimating software. There are still die-hard MacNail and BidMagic users, so we keep their manuals online! Goldenseal includes similar estimating software features, plus accounting, job costing and project management. Wage rates in Goldenseal are stored in labor Cost Items.

Labor Cost Rates

Figure wage rates at your total out-of-pocket cost. Include the employer portion of FICA, Workman's Comp, Unemployment, and any other benefits that you pay. You can add a percentage to the wage rates to account for your payroll costs--accounting, office time, etcetera--or you can include those items as a part of the overhead percentage in the MacNail construction estimating software.

* Subcontractor wage rate--a 'generic' subcontractor wage that covers minor sub-trades that are not listed separately.
* Carpenter wage rate--the wage rate paid to a fairly skilled 'average' carpenter. Most builders should consider about 60 to 70% of their crew members to be 'carpenters'. Take an average of them all (including all wage costs), and use that here.
* Laborer wage rate--the wage rate paid to an unskilled laborer or apprentice carpenter. Most builders should consider about 30% of their crew members to be 'laborers'. Take an average of them all (including all wage costs), and use that here.
* Supervisor wage rate--the wage rate paid to a project manager or a supervisor who rarely swings a hammer. Lead carpenters and working foremen should probably be considered as carpenters.
* Plumbers and other Subcontractors wages--you can probably get a rough idea of prevailing wages in your area by asking your subcontractors. You can also use estimating books that list local wages for sub-trades. The calculations derived from these rates are often replaced by subcontractor quotes, so you only need an approximate wage rate.