As with most industries, construction industry salaries and construction pay is based on a number of different variables. Construction salaries are influenced by experience, one's role in the industry, as well as the type of construction that is involved.

For instance, construction management salary would likely be higher than the average construction worker salary because of the level of responsibility required to manage crews and deal with personnel issues. In order to understand construction industry salary information and know where to go to gain access to construction industry salary tools basics you need to:

1. Understand construction salary as it pertains to the job description.

2. Know the role of experience in construction industry compensation.

3. Gain an in-depth understanding of construction industry pay by purchasing a detailed survey.

Action Steps
The best contacts and resources to help you get it done

Understand the role job description has on construction salary

Construction industry pay is highly dependant on the position. A carpenter in the construction field, for instance, makes less than half of what a construction manager does.

I recommend: Indeed's chart shows just how much pay varies according to the role and level of responsibility. Scroll down to the "Earnings" section of the U.S. Bureau of Labor Statistics Office of Occupational Statistics and Employment Projections article on the construction industry, and you will see that non-residential construction pays slightly better than residential construction.

Learn how experience impacts construction pay

When it comes to pay in the construction industry, the more years under your belt the better. In fact, research shows that an entry-level salary is half of that of a person with 20 years of experience with certain jobs.

I recommend: PayScale's chart shows how salary levels increase when coupled with more experience. Salary's chart shows that those with less experience tend to fall in the 25th percentile and earn up to $30,000 less than those with more experience in the 75th percentile.

Purchase a survey to get in-depth information about construction industry salaries

If you are looking to get detailed information about benefits and perks or, perhaps, a breakdown of salaries according to geographical location, consider purchasing a survey conducted by a reputable company.

I recommend: Moss Adams has been conducting compensation and industry trend surveys for several years. Their "Construction Industry Salary Guide and Tools of the Trade" can be purchased for $100. PAS' survey information is available in book form or on CD. Their survey breaks down information according to revenues, type of construction, etc.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many jobs in the construction industry are at the mercy of Mother Nature. If the weather is tough for awhile, construction projects may get delayed and then overtime is required to make up for lost time. Be sure to factor this in when weighing construction industry salaries.

Construction salary can be difficult to determine as you must weigh a number of factors. However, you can rely on a wide range of tools to help you set compensation wages and policies.

Construction pay is subject to bad weather or downturns in the economy that affect construction activity and then spur layoffs. Salaries also reflect position, experience and leadership. For example, construction management salary is going to be greater than the salary of other workers.

When determining pay, consider this construction industry salary information:

1. Construction labor requires a variety of skills, but some projects require specialized training and experience that should be factored into construction industry compensation.

2. Most workers will learn on the job, but formal apprenticeship or internship programs provide the best opportunities and may advance a worker to receive construction management salary.

3. Location will affect salaries in the construction industry, but in many areas there will be competition for jobs requiring limited skills.

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Research current construction pay structures

A number of websites offer salary survey information. Many offer basic information for free while providing more detailed findings for purchase. Look at each individual building project separately when determining the amount of workers needed, and then figure wages.

I recommend: Find base salary, bonus and benefits information for construction and installation positions on Salary.com. Order a salary report from PayScale. Be sure to view a sample report and ordering options.

Keep up to date on industry news as it relates to construction salaries

The construction industry is changing constantly. Keep up with the trends so you can stay on top of your business.

I recommend: Sign up for a free construction newsletter from AGC SmartBrief. Check out the free e-mail newsletter from Markup & Profit; if you like what you see, click to subscribe.

Look into software options to set construction salary

Make technology work for you by looking into software options when it comes to setting wages. Many software packages exist to help you with your business compensation needs.

I recommend: Read up on Halogen Software's eCompensation system; then consider ordering a free trial, scheduling a demo or going through a product tour. Compare construction software at 2020software.com. Many construction management software services also feature labor components, an important benefit in the construction industry.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You can get creative when it comes to setting construction industry salaries. Consider the new trend of paying workers a flat rate by the job rather than hourly or on salary. It may just get the job done on a more timely basis. Once the job is completed, workers are paid and can move on to the next one.

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.

Action Steps
The best contacts and resources to help you get it done

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.

I recommend: See more on cost of living as well as other resources for setting pay scales at Salary.com.

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.

I recommend: Learn more about the median salary for specific construction jobs at sites like PayScale.com.

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.

I recommend: See more on the prevailing wage at 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.

I recommend: See the 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.

I recommend: See construction jobs listed with salary estimates at Indeed.com.

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.

I recommend: Get links to in-depth info on a variety of construction trade groups and agencies at this Construction Career Exchange.