New construction contractor workers comp often splits a GC's payroll between supervisors and whatever its own crews build. California's executive supervisor classification 5606 applies only with two levels of supervision between the executive and the crew, or when every trade goes to licensed subs. On a wrap-up project, enrolled on-site payroll may be reported under the project's program instead of your own policy.
A ground-up job moves through phases: grading, foundations, framing, roofing, then finishes. A builder may self-perform some phases and sub the rest, superintendents may run several sites, and equipment comes from a yard that is on no job. Each of those choices shifts payroll from one published classification to another. For what any GC policy charges, start with general contractor workers comp insurance; the rest of this page is about ground-up work.
The governing class is set job by job. When payroll is kept separately by job, California sets the governing classification for each job; otherwise it is set across the policy period. Miscellaneous employees such as supervisors, flaggers, drivers and debris cleanup go to the governing class, and operations without separate payroll records go to the highest rated classification on the job.
California's published classification 5606 mentions executive level supervisors of a construction business, but only when at least two levels of supervision sit between the executive and the workers doing construction, or all construction is subcontracted to licensed contractors. One person's payroll may not be divided between 5606 and another classification. Project managers, safety managers and engineers who walk the site qualify only on the same condition.
Some roles sit outside 5606. It does not apply to employees whose site duties are limited to estimating, outside sales or public relations; those may go to 8742; 8601(1), Salespersons Outside when its conditions are met and Engineers for fee-based construction managers that don't supervise construction. For the GC class panel itself, with 5606 next to 5610 and carpentry, see California GC workers compensation.
Fully subcontracted jobs. Where every operation goes to licensed subs, 5610 takes in the GC's non-executive staff on that job, cleanup and warranty repair included.
| Rule | California | Arizona | Nevada |
|---|---|---|---|
| GC license class | B General Building | B-1 General Commercial Contractor or B General Residential Contractor | B General Building |
| Subs who may count as yours | Unlicensed people doing licensed work (Labor Code 2750.5) | A sub's crew, where you control work in your trade (Arizona Revised Statutes 23-902) | Subs and their workers, as the principal contractor's employees |
| Wrap-up projects | The wrap-up insurer reports payroll and losses for each contractor (Insurance Code 11751.82) | This site found no Arizona wrap-up statute; NCCI's rules use an individual policy for each contractor | Allowed only for projects estimated at $50,000,000 or more |
| Payroll counted | Dual-wage splits by regular hourly rate | Classified under NCCI; California codes do not carry over | Up to $98,433.60 per employee through December 31, 2026, then $102,452.16 |
In Nevada, workers comp is industrial insurance; to see how the per-employee cap hits a framing or concrete crew, try the Nevada industrial insurance payroll limit calculator. Owner elections differ by state, as the Arizona contractor workers comp rules explain; Nevada's are under Nevada contractor workers comp rules.
Beyond the panel's supervisor, subcontracted-work and carpentry entries, a builder that self-performs structure reports under trade classifications too.
$46.00 an hour is the line between these published classifications
Published classifications that mention this work
Published classifications that mention new construction work include carpentry 5403/5432, split at $46.00; light gauge steel framing 5632/5633, split at $46.00; concrete or cement work 5201(2)/5205(2) for slabs and slab-type foundations, split at $36.00, and 5213 Concrete Construction; excavation and grading 6218/6220, split at $45.00; roofing 5552/5553; and 8227 for permanent yards or shops. A builder's crews are placed by the tasks each person performs on site and by the carrier's determination; this site doesn't choose codes, and Arizona and Nevada classify under their own system.
Height changes concrete, not carpentry. Slab-type foundations and floor slabs for residential buildings up to three stories, and for one or two story wood framed or masonry commercial buildings, fall within 5201(2)/5205(2). Taller residential buildings and poured-in-place concrete buildings fall within 5213. Carpentry has no height split. Framing and concrete each have a California page: California carpentry workers comp and California concrete workers compensation.
California. Under Insurance Code 11751.82, a wrap-up is insurance written for one construction project that insures at least two of the firms building it, whether one policy or several. The wrap-up insurer reports workers comp losses and payroll for each contractor to the rating organization and, on request, gives each contractor its copy within 10 days. Ask for it; it shows what payroll on that job was reported outside your policy.
Your own policy. It may carry an endorsement that leaves out the wrapped job. NCCI's Designated Workplaces Exclusion Endorsement, WC 00 03 02, can exclude a described site or work insured by another policy, only where the state's act allows it, and NCCI's rules give each contractor on a wrap-up its own policy. Confirm with your carrier and the program administrator which endorsement applies before enrolled work starts.
Nevada. A consolidated insurance program may be set up only for a project or series estimated at $50,000,000 or more, and joining can be a contract condition (Nevada Revised Statutes 616B.710). Your own industrial insurance policy may leave out an employee assigned to that project who works only at that site (616B.031 of the same chapter). The program must not cover anyone while off the site, so you keep separate coverage for employees not assigned to it or not working there exclusively (616B.730).
Workers comp programs for home builders, subject to underwriting.
Illustrative scenario
Illustrative only. A B General Building contractor builds a twelve-house tract of two-story homes with its own framing and concrete crews, each led by a foreman reporting to one superintendent. The firm is also a contractor on a mid-rise under an owner's wrap-up. At audit, the superintendent has only one level of supervision below him, so he may not qualify for 5606 and may go to the governing class. The tract slabs fall within 5201(2)/5205(2), because two-story homes sit within its three-story limit, and the framers split across the carpentry pair. The permanent yard across town may put its mechanic and delivery driver under 8227, while the tract trailer takes the tract's class. On the mid-rise, the wrap-up insurer reports enrolled site payroll, and the GC asks for its copy. In Nevada, the mid-rise could be wrapped only if its estimated cost met the statute's threshold.
Listing Every Superintendent as an Executive Supervisor
Builders often put every superintendent and project manager under 5606. It needs two levels of supervision below the person, and one person's payroll can't be split with a trade class, so a super who also sets forms may land with the crew's work.
The guide to workers comp audit records explains how to dispute a result. With your job-by-job payroll and wrap-up records ready, get a new construction contractor workers comp quote.
On a new build, workers comp is for injured employees, including sub workers the law counts as yours. A neighbor hurt by falling debris, damage to the frame before turnover or a defect claim after closing typically lands on general liability, builder's risk or a bond.
Builders that take remodels can compare residential remodel workers comp; office and retail interiors are the subject of workers comp for tenant improvement contractors. Every site and structural trade has a page under workers comp for contractors by trade.
Send your trade, state and payroll, and a broker reviews the request. If you would rather talk first, leave a number.
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Only if at least two levels of supervision sit between the superintendent and the workers doing construction, or every trade on the job goes to licensed subs. One person's payroll can't be split between 5606 and another classification. Because the carrier looks at what the person really does, keep an organization chart and time records.
Only under the same two-level or fully subcontracted condition that applies to superintendents. Someone whose site duties are limited to estimating, outside sales or public relations is outside 5606, and a fee-based construction manager that does not supervise construction may be placed with engineers instead.
Often not for enrolled on-site work, but it depends on the program and your policy. In California the wrap-up insurer reports each contractor's payroll and losses, and your policy may carry an endorsement leaving out the wrapped job. In Nevada, your policy may leave out employees who work only at the program site. Confirm with the carrier and the program administrator.
It can be. California's 8227 mentions a contractor's permanent yard or shop for equipment maintenance or material storage, including delivery to the job. A temporary yard at or beside the site takes the job's construction class. Separate payroll records let the auditor tell the two apart.
For concrete, yes. Slabs and slab-type foundations for residential buildings up to three stories fall within 5201(2)/5205(2), while taller residential and poured-in-place concrete buildings fall within 5213. Carpentry has no height split; 5403/5432 mentions new construction and remodeling alike.
Usually for anything outside the program. Subs that are not enrolled and work done off the wrapped site may still be reviewed on your own audit. Ask the program administrator which subs and operations are enrolled, and collect certificates for the rest.
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Reviewed by David Gleason, Principal, on .
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New construction contractor workers comp, from the first footing to the wrap-up report.
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