MaineDOT Fair and Reasonable Rates for Construction Support Services

As a result of that letter submitted to MaineDOT from ACEC of Maine dated November 29^th, 2023, in response to ACEC’s Request to Eliminate Construction Support Services Maximum “Fair and Reasonable” Direct Labor rates, the Department arrived at the following recommended limits on fair and reasonable rates to be used in the construction inspection 2023 GCA contracts.

Class I:        $25.00/hour

Class II:       $32.00/hour

Class III:     $38.00/hour

Class IV:      $47.00/hour

Class CM:    $55.00/hour

Class PI:      $50.00/hour

Class ITS:    $47.00/hour

It was further recommended starting in 2025, annually on or about January 1^st, the fair and reasonable rates listed above will be increased 2.5%. 

Effective January 1^st, 2025, the updated fair and reasonable rates are listed below.

Class I:        $25.63/hour

Class II:       $32.80/hour

Class III:     $38.95/hour

Class IV:      $48.18/hour

Class CM:    $56.38/hour

Class PI:      $51.25/hour

Class ITS:    $48.18/hour

The language in the 2023 GCA contracts – “Appendix B - Method of Payment for Construction Support Services” outlines how these rates may be renegotiated under these GCA’s, which is referenced below.

“1. For all services rendered under the terms of this Contract, compensation shall be made based on the above Fixed Burdened Straight Time Rate(s). These Burdened Rates include direct labor, overhead and profit. The Fixed Burdened Hourly Rates agreed upon by the Parties will be fixed until the early part of each calendar year as long as the Agreement is active. At the beginning of each calendar year, these rates may be renegotiated and modified. Overhead rates, if appropriate, will also be modified. For negotiations to be considered, Firms will be required to submit an updated Rate Request Package and must have a current, MaineDOT approved, Audited Overhead Report.”

Please feel free to reach out with any questions.

MaineDOT Contract Procurement Office

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Contract Procurement Office

Maine Department of Transportation

16 State House Station, Augusta, ME 04333-0016

Consultant Info: http://www.maine.gov/mdot/cpo/

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