When estimating labor costs for a union project, which document should be consulted to determine the correct wage rates and fringe benefits?
Correct Answer
B) Collective bargaining agreement
The collective bargaining agreement between the union and contractors specifies exact wage rates, fringe benefits, and working conditions for union projects.
Why This Is the Correct Answer
The collective bargaining agreement (CBA) is the legally binding contract between the union and the contractor/employer association. It specifies exact hourly wage rates, fringe benefit contributions (health, pension, training funds), overtime rules, and working conditions. For union projects, the CBA is the definitive and mandatory source for labor cost data.
Why the Other Options Are Wrong
Option A: Local building code
The local building code addresses construction safety, materials, and methods — not labor compensation. It has no wage rate information and would not help an estimator price union labor.
Option C: OSHA safety standards
OSHA safety standards govern workplace safety requirements and training obligations. While they affect labor productivity assumptions (e.g., safety equipment time), they do not contain wage rates or fringe benefit schedules.
Option D: Prevailing wage determination
Prevailing wage determinations are government-issued documents for public works projects under laws like the Davis-Bacon Act. While important for government contracts, they are separate from union CBAs. On a private union project, the CBA governs, not a government prevailing wage determination.
Memory Technique
CBA = Contract Between (union and) Associates. It's a negotiated contract, not a government document. When in doubt: union labor → CBA; government contract → prevailing wage determination.
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