Construction Mgmt. 703.33 - 04/12 PROJECT NAME PROJECT NO. CONTRACTOR CONTRACT NO. SUBCONTRACTOR DATE HOURLY LABOR RATE WORKSHEET TRADE: CLASSIFICATION: Rate Prevailing Wage Rate Item Per $100 Regular Time Overtime Double Time Notes Base Labor Rate $ 37.40 $ 56.10 $ 74.80 Use certified payroll to verify. Fringe Benefits: ut X in appropriate bo X 5.65 5.65 5.65 X 10.40 10.40 10.40 X 0.70 0.70 0.70 X - - - Other X 0.41 0.41 0.41 Fringe Benefits Subtotal $ 17.16 $ 17.16 $ 17.16 $ 54.56 $ 73.26 $ 91.96 Benefits Paid $ 11.10 $ 11.10 $ 11.10 $ 48.50 $ 67.20 $ 85.90 = Base Labor Rate + Benefits Paid FICA 0.0620 3.01 4.17 5.33 Medicare 0.0145 0.70 0.97 1.25 Federal Unemployment 0.0080 0.39 0.54 0.69 California Unemployment - - - Maximum - 0.062. - - - - - - - - - Burden Subtotal $ 4.10 $ 5.68 $ 7.26 Contractor Liability Insurance N/A N/A N/A Included in OH&P per CGC Small Tools N/A N/A N/A Included in OH&P per CGC N/A N/A N/A Included in OH&P per CGC payment bonds, performance bonds, etc.) TOTAL HOURLY RATE (Total Hourly Rate + Burden) $ 58.66 $ 78.94 $ 99.22 = Amount Contractor paid to employe By signing below, the submitter certifies and declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Rates certified by: Company Name (print name) Signature: (Reference 'Change Orders' in Contract General Conditions. Certified payrolls required for all workers on Project. Contractor shall enter data into all fields highlighted in yellow; for fields highlighted in blue, data will automatically populate.) Benefit Paid Benefit Provided Pension 1 Health/Welfare 1 Training/Certification Vacation/Holiday 1 Total PW Hourly Rate = Base Labor Rate + Benefits Paid + Benefits Provided Total Paid Hourly Rate Burden: Taxes & Insurance 2 Workers Compensation 1 Usually less than 11%; can request policy. Other 1 Other 1 Other (warranty, record drawings, Note: For change order work, mark-ups for overhead and profit shall be applied to the above rates (these rates are subject to audit) in accordance with the provisions of CGCs, under 'Change Orders'. Mark-up rates for utility repair work shall be adjusted in accordance with the CGCs, under 'Contractor's Responsibility for the Work', subsection 'e-Utilities'. 1 Costs for Overtime and Double Time are same as for Regular Time. 2 Taxes & Insurance apply to Total Paid Hourly Rate which includes Base Labor Rate plus benefits paid in cash.
Transcript
Construction Mgmt.703.33 - 04/12
PROJECT NAME PROJECT NO.
CONTRACTOR CONTRACT NO.
SUBCONTRACTOR DATE
HOURLY LABOR RATE WORKSHEET
TRADE: CLASSIFICATION:
Rate Prevailing Wage RateItem Per $100 Regular Time Overtime Double Time Notes
Base Labor Rate $ 37.40 $ 56.10 $ 74.80 Use certified payroll to verify.
Contractor Liability Insurance N/A N/A N/A Included in OH&P per CGC
Small Tools N/A N/A N/A Included in OH&P per CGC
N/A N/A N/A Included in OH&P per CGCpayment bonds, performance bonds, etc.)
TOTAL HOURLY RATE (Total Hourly Rate + Burden) $ 58.66 $ 78.94 $ 99.22 = Amount Contractor paid to employee
By signing below, the submitter certifies and declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Rates certified by: Company Name:(print name)
Signature:
(Reference 'Change Orders' in Contract General Conditions. Certified payrolls required for all workers on Project. Contractor shall enter data into all fields highlighted in yellow; for fields highlighted in blue, data will automatically populate.)
Benefit Paid
Benefit Provided
Pension 1
Health/Welfare 1
Training/Certification 1
Vacation/Holiday 1
Total PW Hourly Rate = Base Labor Rate + Benefits Paid + Benefits Provided
Total Paid Hourly Rate
Burden: Taxes & Insurance 2
Workers Compensation 1
Other 1
Other 1
Other (warranty, record drawings,
Note: For change order work, mark-ups for overhead and profit shall be applied to the above rates (these rates are subject to audit) in accordance with the provisions of CGCs, under 'Change Orders'. Mark-up rates for utility repair work shall be adjusted in accordance with the CGCs, under 'Contractor's Responsibility for the Work', subsection 'e-Utilities'.
1 Costs for Overtime and Double Time are same as for Regular Time.2 Taxes & Insurance apply to Total Paid Hourly Rate which includes Base Labor Rate plus benefits paid in cash.
HOURLY LABOR RATE WORKSHEET INSTRUCTIONS
October 2010
1) It can be the base hourly rate, or 2) Occasionally, contractors will include vacation pay in this rate because it is a taxable benefit.
The following is intended to provide guidance and assistance in working with the Hourly Labor Rate Worksheet, Form 703.33. Contractor should enter data into all fields highlighted in yellow; once data is entered those fields highlighted in blue will automatically populate. These are the labor rates that should be used on all change order requests when labor hours are broken out. The rate sheet must be signed.
Fringe Benefit Statement: In order to confirm an hourly labor rate worksheet, a signed Fringe Benefit Statement is required. If the fringe benefits are paid directly to the employee, that should be noted on the Fringe Benefit Statement and signed.
Base Labor Rate – This rate can be done a couple of ways:
The contractor only has to enter the regular time base rate, the form calculates Overtime (1.5) and Double time (2) automatically.
Fringe Benefits – The total of the Fringe Benefit column should match the total of the Fringe Benefits statement. Many times the benefits may be distributed differently among the various types, but Vacation and Pension almost always match. Usually, with a Union contractor, the vacation benefits are taxable, so the sheets are set up to add the vacation pay into the base rate to calculate the taxes in the burden area. The only difference in this is when the vacation is actually a deduction from their base rate. There will be nothing filled in the fringe benefit section. On the statement it will note that this is a deduction. 'Other' fringe benefits may include subsistence payments to the employee, or union required expenses, i.e. safety equipment.
If the fringe benefits are paid directly to the employee, the entire hourly labor rate is taxable. In the worksheet, the burden is calculated based on the total hourly labor rate.
Burden - Burden includes taxes and insurance.
Taxes: Those cells in the column labeled “% Rate” that have a percentage filled in are mandated rates by the government. We just need to monitor changes. Contractors’ payroll departments should notify us when these percentages are incorrect.
Workers’ Compensation Insurance: will vary widely from Contractor to Contractor. It can be as low as 5% and as high as 30 or 40%. It's an individual assessment made by insurance companies based upon several things, including the Contractor’s claim history. Contractor shall insert its Worker's Comp. rate in the adjacent '% Rate' column.
HOURLY LABOR RATE WORKSHEET INSTRUCTIONS
October 2010
Page 2
Example of liability premium:
Liability Insurance: A contractor pays liability premiums based on sales, and they are usually billed a rate per thousand dollars of sales. Contractor shall insert its liability rate in the adjacent '% Rate' column.
If a contractor does $60 million in sales per year, and his liability insurance premium is $5 for every $1,000 dollars of sales, his total liability insurance premium for the year would be $300,000. However, probably only 25-33% of the sales figures are labor costs. The Contractor then needs to divide the labor portion of the premium by the total labor hours for the year.
The Contractor's premium is $300,000, and 33% of this is labor. Therefore, $100,000 is the labor portion of the premium. If the Contractor has 100 employees and the average number of work hours per employee per year is 2,000, then labor hours per year would be 200,000. The labor portion of the premium, $100,000, is then divided by the total labor hours per year, 200,000, resulting in a cost of $0.50 cents per hour. If the base and vacation pay is $34.00 per hour, the cost equals 1.47%. This is how liability premiums on the labor rate worksheet should be calculated. Typical liability on labor is less than 2% but can be as high as 5% on rare occasions. If the Contractor insists on more than 2%, he needs to produce their liability premium sheets as backup.
These are the only items allowed to be factored into this rate. Pickup trucks, small tools, etc. are not allowed. Any “other” needs should be considered extraordinary and must be explained and documented completely. (Most campuses will never allow any “other” charges.)
Campus should go through the certified payroll records and spot check the base rate. Most of the time the spot checking will show the rates to be okay, and sometimes even low. If the Contractor has employees that they pay over scale, the Contractor could actually submit an individual hourly rate worksheet for that employee. We allow them to bill for actual labor costs.
Time and material change order requests must use these rates. The mistake contractors often make on these requests is billing journeyman rates for an apprentice. If campus has certified payrolls for that time period, campus can verify it. If campus doesn't have them, request that the contractor submit them for that time period.
NOTE: The hourly labor rate worksheets may change over time as negotiated rates in union contracts change. There may be a change in either benefit costs, base rates or both. The work performed should be charged at the applicable rates for that time period.
