When bidding on work, which item would you not include in the price of your bid?

When bidding on work, which item would you not include in the price of your bid?

• A. Labor wages
• B. Material costs
• C. Workers' compensation insurance premium
• D. Equipment rental

Answer: (C)

When you bid a project, you list costs that are directly tied to completing the job: the labor to do the work, the materials used, and any equipment rental needed for the scope. The workers’ compensation insurance premium is a business-wide cost, not a unique, direct charge for a specific job. It’s required by law for employing workers, so contractors typically cover it as part of overhead or a general markup rather than billing it as a separate line item in the bid. Including labor, materials, and equipment rental reflects the actual workload and resources for the project, while workers’ comp is handled as an indirect cost.