Estimating Practice Exam

Where can the wage rate be found when union labor is utilized?

1. in the local union agreement for the craft involved

2. in the project specifications

3. on the contractor's bid

4. from industry benchmarks

The correct answer is: in the local union agreement for the craft involved

The wage rate for union labor is typically found in the local union agreement for the craft involved. This agreement outlines the specific pay rates, working conditions, and benefits for union members working in various trades. Union agreements are negotiated collectively and reflect the standards set by the union for their members, ensuring that wages are consistent with the local labor market and industry standards for that specific craft. Project specifications may include general labor rate guidelines but do not provide the specific wage rates determined by union agreements. Contractor bids might reference expected costs but may not accurately detail the wage rates from union agreements. Industry benchmarks provide a broader perspective on wage rates in the industry, but they lack the specificity of local union agreements, which are tailored to particular crafts and regions. Thus, consulting the local union agreement is the most reliable method to ascertain the applicable wage rate for union labor.