Public construction projects in Delaware from schools and libraries to infrastructure and municipal buildings are governed by the state’s Prevailing Wage Law. This law ensures that workers on state-funded projects are paid fair wages based on their trade and location.
For contractors and estimators, prevailing wage requirements add complexity to the estimating process. Unlike private projects, where market rates may apply, public projects demand strict adherence to Delaware Department of Labor (DOL) wage schedules. Misclassification of workers or failure to include fringe benefits can result in bid rejection, fines, or costly disputes.
This guide explores how to navigate prevailing wage estimates in Delaware, with a detailed table of challenges and best practices.
Key Estimating Factors for Delaware Prevailing Wage Projects
| Factor | Challenge | Estimating Considerations |
|---|---|---|
| Wage Rates by County | Rates differ in New Castle, Kent, and Sussex counties | Apply the latest Delaware DOL wage schedule for the project’s location |
| Trade Classification | Misclassification leads to penalties | Match each task to the correct trade (e.g., laborer vs. cement finisher) |
| Fringe Benefits | Must be included in total compensation | Add health, pension, and vacation contributions to base wage |
| Overtime Rules | Public projects often require weekend/night work | Apply overtime multipliers per Delaware labor law |
| Certified Payroll | Required for all public jobs | Budget admin labor for reporting and compliance |
| Apprenticeship Ratios | Limits on apprentice-to-journeyman ratios | Ensure ratios are met or budget for full journeyman rates |
| Scope of Work | Overlapping duties between trades | Clarify scope to avoid disputes and double-counting |
| Bid Compliance | Incorrect wages can disqualify a bid | Double-check all labor classifications and rates before submission |
Step-by-Step Estimating Process
- Identify Project Location Determine whether the project is in New Castle, Kent, or Sussex County and download the latest wage schedule from the Delaware DOL.
- Break Down Labor Tasks by Trade List all activities (excavation, formwork, finishing) and assign them to the correct classification.
- Apply Wage and Fringe Rates Use the total hourly rate (base wage + fringe benefits). For example, as of 2024:
- Cement Finishers in New Castle County: $91.66/hour
- Carpenters in Kent County: $61.06/hour
- Laborers statewide: $55.65/hour
- Factor in Overtime and Shift Work Apply 1.5x or 2x multipliers for overtime, weekends, or night shifts.
- Include Compliance Costs Budget for certified payroll preparation, audits, and reporting.
- Review Apprenticeship Ratios Delaware enforces limits on apprentice-to-journeyman ratios; exceeding them requires paying apprentices full journeyman rates.
Estimator’s Compliance Checklist
- Use current wage schedule by county and trade
- Match all tasks to correct classifications
- Include fringe benefits in total hourly rate
- Apply overtime and shift premiums where needed
- Budget for certified payroll and compliance labor
- Verify apprentice ratios and classifications
- Double-check bid for wage accuracy before submission
Real-World Example: Kent County School Renovation
A contractor bidding on a school renovation in Kent County:
- Applied carpenter rate of $61.06/hour and electrician rate of $81.62/hour.
- Added $15,000 in administrative labor for certified payroll and compliance.
- Verified apprentice ratios and adjusted crew mix.
- Submitted a compliant bid and secured the contract.
Why Accurate Prevailing Wage Estimating Matters
| Outcome | Benefit to Contractors |
|---|---|
| Legal Compliance | Avoids fines, audits, and bid disqualification |
| Fair Labor Practices | Ensures workers are paid correctly and competitively |
| Bid Accuracy | Prevents underbidding and protects profit margins |
| Reputation Management | Builds trust with public agencies and unions |
| Competitive Advantage | Compliant bids stand out in public procurement |
Final Thoughts
Estimating labor for prevailing wage projects in Delaware requires attention to detail, legal awareness, and administrative planning. By applying the correct wage schedules, classifying trades properly, and budgeting for compliance, contractors can submit competitive bids that meet all state requirements.
At MSB Estimating, we specialize in public project estimating across Delaware. From schools and libraries to infrastructure and municipal buildings, we provide CSI-formatted takeoffs aligned with prevailing wage laws and certified payroll standards.
Need Help Estimating a Prevailing Wage Project?
Contact MSB Estimating today for accurate, compliant labor estimates tailored to Delaware’s public construction requirements.
