Check the wage rate and fringe benefits for the classification of work actually performed before locking the labor input, as required by Acquisition.gov.
prevailing wage estimate checklist: what to check first
The first item on your labor cost checklist is verifying that the rate matches the specific classification of work actually performed. According to Acquisition.gov, laborers and mechanics must be paid not less than the appropriate wage rate and fringe benefits in the wage determination for the classification of work actually performed. This requirement applies without regard to skill, except as provided in the clause entitled Apprentices and Trainees.
When building your estimate, do not assume a generic labor rate covers the task. You must identify the exact classification that describes the physical duties being performed on the public bid. The wage determination for that specific classification dictates the minimum wage rate and fringe benefits. If your estimate uses a different classification or a lower rate, it fails to meet the requirement to pay not less than the appropriate wage rate and fringe benefits in the wage determination for the classification of work actually performed.
This check ensures your labor input reflects the correct minimums before you apply any markups. The rule ties the payment obligation directly to the classification of work actually performed, without regard to skill, except as provided in the clause entitled Apprentices and Trainees. You must confirm that the fringe benefits included in your cost model align with the wage determination for that specific classification. The exception for Apprentices and Trainees is the only stated deviation from this rule regarding skill levels.
Key takeaways for what should i check before locking labor costs for a public construction bid?
- Verify if the public works project exceeds $1,000, as prevailing wages must be paid to all workers employed on such projects according to California Department of Industrial Relations.
- Note that general determinations are issued twice a year on February 22 and August 22, according to California Department of Industrial Relations.
- Calculate overtime compensation for hours worked in excess of eight each day and 40 each week at not less than one-and-one-half times the basic rate of pay, according to California Department of Industrial Relations.
- If a fringe benefit is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or pay another fringe benefit or an hourly cash equivalent thereof, according to Acquisition.gov.
Review the project value against the $1,000 threshold to confirm coverage. Check the current determination issue dates to ensure you are using the correct wage rates. Separate time by classification and apply the overtime multiplier to hours beyond the stated daily and weekly limits. For nonhourly fringe benefits, decide whether to pay the benefit as stated or use an hourly cash equivalent. Record these four inputs in your labor checklist before locking the estimate.
before review: identify covered workers and determination dates
Before locking labor costs, confirm which workers fall under prevailing wage requirements and which determination dates apply to your project. In California, prevailing wages must be paid to all workers employed on a public works project when the public works project is over $1,000, according to California Department of Industrial Relations. This threshold defines the scope of coverage for the state’s public works projects.
To determine if a specific worker is covered, check their duties. The term “laborer or mechanic” includes at least those workers whose duties are manual or physical in nature (including those workers who use tools or who are performing the work of a trade), as distinguished from mental or managerial, according to Legal Information Institute. A laborer or mechanic includes at least those workers whose duties are manual or physical in nature, including workers who use tools or who perform the work of a trade, as distinguished from mental or managerial.
When reviewing contracts, note that with the exception of work performed under a development statute, the terms contract and subcontract do not include agreements with employers that meet the definition of a material supplier under this section, according to Legal Information Institute. This exception means that material supplier agreements are generally excluded from the contract definitions used for wage coverage, unless a development statute applies.
Timing your estimate correctly requires knowing when wage rates are updated. General determinations are issued twice a year on February 22 and August 22, according to California Department of Industrial Relations. These dates mark when new wage determinations become available for use in estimating public works projects in California.
Record the project value, worker duty types, and applicable determination dates in your bid file. Verify if any work falls under a development statute before applying the material supplier exception. Use the February 22 or August 22 dates to ensure you are referencing the current wage determination for your estimate.
during review: separate classifications, overtime and fringes
When a laborer or mechanic performs work in more than one classification, you may compensate them at the rate specified for each classification for the time actually worked therein, provided that the employer’s payroll records accurately set forth the time spent in each classification in which work is performed, according to Acquisition.gov. If a class of laborers or mechanics is not listed in the wage determination but is to be employed under the contract, the Contracting Officer shall require that the class be classified in conformance with the wage determination, according to Acquisition.gov. The Administrator or an authorized representative will approve, modify, or disapprove every additional classification action within 30 days after receiving it and so advise the Contracting Officer, or will notify the Contracting Officer within the 30-day period that additional time is necessary, according to Acquisition.gov.
For California public works, compensation for all hours worked in excess of eight hours per day and 40 hours during any one week should be not less than one-and-one-half times the basic rate of pay, according to California Department of Industrial Relations. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the Contractor shall either pay the benefit as stated in the wage determination or shall pay another fringe benefit or an hourly cash equivalent thereof, according to Acquisition.gov.
Record the time spent in each classification in your payroll records before locking the labor input.
during review: account for secondary site wage exposure
When your bid involves work at more than one location, the wage determination incorporated for a secondary site becomes effective from the first day on which work under the contract was performed at that site, and it is incorporated without any adjustment in contract price or estimated cost, according to Acquisition.gov. This rule applies specifically to the 52.222-6 Construction Wage Rate Requirements, so verify that your estimate accounts for the secondary site’s rates from day one rather than assuming a later effective date or a price change.
For laborers employed by the construction contractor or construction subcontractor who are transporting portions of the building or work between the secondary site and the primary site, they shall be paid in accordance with the wage determination applicable to the primary site of the work, according to Acquisition.gov. This distinction matters when you are building the labor input for transportation tasks: the rate source for those workers is the primary site’s determination, not the secondary site’s.
To apply this in your estimate:
- Identify whether any portion of the work will be performed at a secondary site.
- If so, note that the secondary site’s wage determination takes effect from the first workday at that site with no contract price or estimated cost adjustment.
- For transportation labor moving work between sites, use the primary site’s wage determination for those workers.
- Record the effective date and the applicable determination source for each site in your labor input checklist.
Keep the claim tied to the named source; do not treat this rule as applying to every jurisdiction or every firm’s practice. If your project does not involve a secondary site, this section does not add a required input, but confirm that assumption before locking the labor cost.
labor input reference table by publisher
The table below maps the six labor cost checks to their source publishers and the specific data points supplied in the evidence. Each row cites the publisher and the exact detail from the source.
Review one public bid labor line and record its classification, fringe treatment and unresolved location-specific inputs in the checklist.
after review: retain the labor input checklist
Retain a record of the Washington reference files used to validate workers' compensation cost assumptions. The Washington State Department of Labor & Industries lists a "2026 base rates by risk classification (Excel)" file on its "Rates for Workers' Compensation" page, according to Washington State Department of Labor & Industries. This listing identifies the base rates by risk classification for the 2026 period. The same source also lists the 2026 WAC 296-17-885 Table 3 Expected Loss Rates and Primary Ratio by Risk Classification and Fiscal Year Expected Loss Rates in Dollars for Each Worker Hour (Excel), according to Washington State Department of Labor & Industries. This file expresses expected loss rates in dollars for each worker hour by risk classification and fiscal year.
Record the file names and their stated units in your checklist so the estimate reflects the correct classification framework. The base rate file is identified by its risk classification structure, and the expected loss file is identified by its worker-hour dollar unit. If the project involves multiple risk classifications, match each to the corresponding entry in the 2026 base rates file. The expected loss rates in dollars for each worker hour provide a unit basis for comparing costs across different classifications. Retrieve specific figures from the Excel files themselves.
Related guides
faq: public bid labor cost checks
what belongs in a prevailing wage estimate checklist?
The checklist covers six specific areas: worker coverage, determination dates, classification rates, overtime and fringe treatment, secondary site exposure, and reference file checks. These items form the core review process before locking labor costs.
does california's prevailing wage threshold cover my public works bid?
California public works projects over $1,000 require prevailing wages, according to California Department of Industrial Relations. This threshold applies to all workers employed on such projects.
how should labor time in more than one classification be separated?
Employer payroll records must accurately set forth the time spent in each classification in which work is performed, according to Acquisition.gov. This separation allows compensation at the rate specified for each classification for the time actually worked.
can a nonhourly fringe benefit be replaced with an hourly cash equivalent?
Yes, a contractor may pay another fringe benefit or an hourly cash equivalent when a fringe benefit is not expressed as an hourly rate, according to Acquisition.gov. The option is to pay the benefit as stated in the wage determination or use one of these alternatives.
which washington labor cost reference files are listed for 2026?
The listed file is the 2026 base rates by risk classification in Excel format, according to Washington State Department of Labor & Industries. This file provides base rates organized by risk classification.