BUILDingSTRONG

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Protects Taxpayers� High-skilled workers finish projects on time and build quality roads and

buildings meant to last – leaving taxpayers with no cost overruns and lower maintenance costs over time.

� Construction workers in Indiana contribute $21 million to state and local taxes. Better wages mean a stronger and more fairly distributed tax base. This helps policy makers balance budgets and provide public safety and education services without raising taxes.

� Typical workers not paid the common construction wage are eligible for thousands of dollars in public assistance, which costs taxpayers for additional reliance on cash assistance, food stamps, and healthcare – taxpayers don’t save, they subsidize.

Creates Local Middle Class Jobs� A vast majority of work is performed by in-state contractors in states

with a strong common construction wage law – almost 91% in Indiana.� Common construction wages help support local training programs that

provide career opportunities in the middle class.

Drives Economic Development� Every dollar spent on a common construction wage project generates

$1.50 in economic activity – that’s money spent at local businesses such as restaurants, shopping malls, and grocery stores – spurring additional job creation that keeps local communities and businesses strong.

� Common construction wage jobs support an additional 2,000 non-construction jobs for Hoosiers.

Responsible Government, More Hoosier Jobs

Learn More at buildingstrongcommunities.org or email lcarroll@buildingstrongcommunities.org

commonconstructionwage

buildingstrongcommunities.org

BUILDingSTRONG

COMMUNITIES

What is common construction wage?� The Common Construction Wage is the wage

paid to construction workers on Indiana’s publically financed projects that cost over $350,000.

� These market rate wages are determined by a five member panel in each county that includes two taxpayers as well as a representative from the business sector, workforce, and the awarding agency.

� The panel votes on the wages to be paid on the public project based on the wages paid to construction workers in that county’s private sector.

When we put local, experienced construction professionals to work and pay them fairly, we get higher-quality projects, a stronger middle class and vibrant local economies.

Learn More at buildingstrongcommunities.org or email lcarroll@buildingstrongcommunities.org

Why Common Construction Wage?� It gives taxpayers a voice and vote on how their tax dollars are spent to

finance community projects.� Common construction wage stops big government with big money from

undercutting the wages common in local communities, which disrupts the local economy and the community’s standard of living.

� It controls costs while producing a quality product. Labor only makes up 23% of total building construction costs in Indiana. Reducing wages doesn’t produce any savings without paying workers illegally below minimum wage. However, productivity does drive the cost of construction. Skilled workers on common construction wage jobs are 15% more productive than less-skilled workers.

Common Construction Wage Facts

12%

16%

7%

9%

8%2%

1%2%

43%

Construction LaborFringe BenefitsAdmin LaborPower, Fuel, Etc.DepreciationMaterials, ComponentsPurchased ServicesRental CostsProfits

Labor only makes up 23% of construction costs, not enough to generate savings by cutting.