What is the total percentage of payroll to work costs in a wrap-up project? 

– Lionel, Cleveland, OH 

Typically, total payroll to construction value percentage averages between 18 to 20%.  However, this number can vary dependent upon the nature of the project such as project with a higher cost in materials would have a lower total payroll to construction value percentage. At CR Solutions, we estimate these percentages using a proforma which is a project financial estimate broken down by work trades based on our historical data. 


If my excess policy is flat rated why do I have to give an insurance credit for it since I won’t be reimbursed by my own carrier?

– Sam, Brooklyn, NY 

Although your excess or umbrella policy is flat rated and you do not receive reimbursement from your own carrier, you are working on a project covered by a wrap-up insurance program providing excess protection. Because these coverages are being provided on this project, you must exclude your costs for these coverages from your contract price. In other words, you cannot charge for insurance coverages that are being provided for you by the CIP. 


Should contractors’ tools and equipment be included in the wrap-up? 

– Charlie,  Irvine, CA

Although it is possible to include this coverage for the items listed above, tools & equipment are generally not covered by a wrap up.  Contractors will tend to carry their own equipment floater policy which will be primary for their work on site. 

Steven Petonic, Account Manager