Hourly rates under construction include not only the payroll but also contributions to government agencies, the profit of the contractor, insurance, and depreciation of trucks & tools.
It can be very surprising for individuals to find that the hourly rate for construction professionals is quite expensive.
In order to better understand how hourly rates are calculated for professionals in the construction industry in Quebec, it is important to understand how the industry is structured.
The construction industry is governed by the Loi sur les relations de travail, la formation professionnelle et la gestion de la main-d’œuvre dans l’industrie de la construction (Law R-20). Law R-20 is enforced by the Quebec Construction Commission (CCQ), a government agency.
The construction industry is divided into four sectors: industrial, institutional & commercial, residential, civil engineering and roads. Each employer in these sectors is grouped into employer associations:
Each worker / employee of a construction company is required to join one of the construction workers’ unions in Quebec:
Every four years, the CCQ, employers’ associations, unions of construction workers meet to establish a collective agreement by sector detailing: hourly rates, pension plans, insurance, compensation funds, and other working conditions and standards.
The hourly rates defined in collective agreements correspond only to the wages of construction workers. In addition to these hourly rates, there are other costs to be taken into account such as: vacation pay, contributions to different plans (such as RRP, QPIP, FSS, other benefits), contributions to employers’ associations, contributions at the CCQ, employment insurance, truck costs amortized over 5 years, tool costs amortized over 3 years, as well as administration and profit costs for the contractor.
Below are the hourly rates for some construction professionals: