Construction Industry Salary Tools Key Terms

Some key terms for establishing compensation with construction industry salary tools

Any business within the construction industry deals with setting wages for various workers and job positions. The method for acquiring pay rates and salaries for jobs can be complex, with factors including location, average compensation, job skills and credentials, and qualifications that workers bring to the table. Knowing about some handy key terms for setting construction industry salary tools will help a business navigate this potentially troublesome task and get fair compensation for all of the workers on a construction project.

Cost of living

Cost of living is a term for the general income required to live in a specific area. Human resources managers do consider the cost of living when setting construction pay scales for both skilled and unskilled workers.

Median salary

The median salary is an average salary that someone makes for a specific job position. Median salaries for construction jobs help managers find specific rates for an open position.

Prevailing wage

The prevailing wage is a term used for a similar idea to establishing the median salary. Many government contracts for construction require a prevailing wage should be set, to be sure that workers receive fair compensation.
Davis-Bacon. For more details on the prevailing wage, see this glossary from the California state government.

BLS Statistics

The U.S. Bureau of Labor Statistics, an arm of the U.S. Department of Labor, compiles statistics for the public that are helpful in nearly any field that Americans labor in. These demographics provide vital information for salary setting tools and more.
U.S. Bureau of Labor Statistics for more information.

Salary estimate

A salary estimate is an approximate salary range. Some agencies use salary estimates for grouping job positions together by range of compensation in public job boards or other resources.

Construction professional associations

Trade groups and associations can be a big help in identifying skill sets, salary rates and more for construction job roles. Trade organizations can provide background on the type of job being researched, as well as common standards and salary or qualifications information.