📐 Add Prevailing Wages (base + fringe) to Your Estimate

When bidding on a prevailing wage job, your estimate must reflect the full labor cost required by the wage determination—not just the base hourly rate. That means accounting for both the base wage and the required fringe, regardless of how you ultimately plan to pay employees.

This page explains how to correctly include prevailing wages in your estimate using common estimating tools or a manual spreadsheet, so your bid is compliant and financially sound from day one.

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ProEst

In ProEst, prevailing wages are typically handled by updating labor rates for the applicable classifications used in the estimate.
For each classification, ensure the labor rate reflects base wage plus required fringe, not just the base rate shown on the wage determination.

Best practice is to clearly label prevailing-wage labor items so they are easy to identify and adjust if wage determinations change before award.

Sage Estimating

In Sage Estimating, prevailing wages are applied by setting labor rates at the crew or labor-class level.
When estimating a prevailing wage job, confirm that the rate used includes both base and fringe and is applied consistently across all bid items tied to that classification.

Many estimating errors occur when standard labor rates are reused without adjusting for prevailing wage requirements.

B2W

B2W Estimate allows prevailing wages to be incorporated by defining labor rates for specific job classifications or bid items.
As with other systems, the key is ensuring the rate represents the total required hourly compensation, not a mix of base-only rates with fringe handled elsewhere.

Labeling prevailing wage labor clearly helps avoid confusion when comparing bids or transitioning from estimate to payroll.

Manual Estimates (Excel)

If you estimate manually in Excel, prevailing wages should be calculated as a single hourly labor cost that includes base wage and required fringe.
Avoid separating base and fringe into different assumptions unless you are confident both will be fully captured in your final labor cost.

A simple approach is to calculate a total hourly rate per classification and use that consistently throughout the estimate.

Key Takeaway

If prevailing wages are not fully included in your estimate, they will surface later as cost overruns. Estimating is the first – and best – place to get prevailing wage compliance right.