The most common source of budget overruns on NYC construction projects is not material cost — it is labor. Specifically, it is the gap between a rough hours estimate applied to a single blended rate and the reality of a diverse crew with multiple classifications, benefit obligations, and overtime exposure.
The foundation of any accurate labor estimate is a classification-level hours schedule. Rather than estimating “electricians” as a single number, you break the scope into discrete job classifications:
| Classification | Est. Hours | Rate/hr | Subtotal |
|---|---|---|---|
| Electrician – Journeyman | 4,200 | $89.24 | $374,808 |
| Electrician – Foreman | 840 | $98.16 | $82,454 |
| Electrician – Apprentice (4th Year) | 600 | $62.47 | $37,482 |
| Total | $494,744 |
This breakdown lets you model the actual crew composition rather than averaging everything to a single journeyman rate. The WageHound Cost Projection tool loads every current classification for every tracked union, so you enter hours and get the total cost automatically.
When WageHound displays a “Total Package” rate, it reflects the base wage plus all required fringe benefit contributions. What it does not include are the additional employer payroll taxes and insurance costs. For a complete picture, you need to layer on the following:
Use the WageHound Labor Burden Calculator to add these on-costs to the prevailing wage package and arrive at a fully burdened hourly rate ready for your estimate.
Prevailing wage schedules publish straight-time rates. In NYC construction, overtime is unavoidable on most projects. The rules vary by trade CBA, but a general framework:
When evaluating subcontractor bids, labor cost projection data becomes a bid-leveling tool. The process:
Ask each sub to provide their assumed crew composition — how many Journeymen, Foremen, and Apprentices for each major phase. This surfaces scope and productivity assumption differences early.
Use WageHound to price each bidder's crew schedule at the prevailing rate. The output is the “prevailing wage floor” for that scope. Any bid that comes in significantly below this number warrants scrutiny — the sub may be planning to use a lower non-prevailing rate or miscounting classifications.
If Sub A assumes 4,000 hours and Sub B assumes 5,200 for the same scope, you need to evaluate whether the hour difference is a realistic productivity assumption or a scope gap. The pricing tool helps isolate the labor cost from the quantity.