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Construction glossary

What is WH-347?

WH-347 is a form utilized in the construction industry by contractors and subcontractors engaged in federal or federally-assisted construction contracts. This certified payroll form, issued by the U.S. Department of Labor, requires contractors to report detailed wage information for employees including hours worked, job classification, rates of pay, and deductions. The purpose of the WH-347 form is to ensure contractors are compliant with the Fair Labor Standards Act regulations. Witnessed and attested to by an assigned company official, this form plays a crucial role in the transparent and fair operation of the construction industry, ensuring that workers are compensated according to stipulated guidelines and in line with labor law regulations.

Trusted by trade contractors across the country

Other construction terms

Prime Contractor

What is a Prime Contractor?

A prime contractor, also commonly referred to as a general contractor, is the main contractor responsible for managing an entire construction project. They are in direct contact with the build’s owner/developer and hold primary responsibility for the construction, execution, quality, and completion of the project under the agreed terms and schedules. As such, the prime contractor addresses concerns and resolves issues related to the project, contributing to the effective execution and timely delivery. The prime contractor also manages the procurement of materials, labor, and equipment, ensuring compliance with building codes and regulations.

A critical part of the prime contractor’s job is hiring and managing trade contractors, also known as subcontractors, who specialize in specific construction trades like electrical, plumbing, framing, etc. The prime contractor essentially acts as a hub, contracting out portions of the work to skilled trade contractors while retaining overall control of the project operations.

Prime contractors have a vested interest in working with subcontractors who not only are highly skilled in their respective trades but also have efficient, well-defined operational and financial workflows to ensure reliability and consistency in their performance. Streamlined billing processes are crucial in this regard. When subcontractors can quickly and accurately generate pay applications—complete with the necessary compliance documentation and lien waivers—it allows the prime contractor to bill the project’s owner promptly and get paid faster. Delays in subcontractor billing can significantly impede the prime contractor’s ability to get paid in time, thereby causing delays in payments to other contractors, too. 

This is where a solution like Siteline can ultimately benefit prime contractors by helping their subcontractors streamline billing processes. Siteline accelerates subcontractor billing by automatically generating pay apps per prime contractor specifications, tracking compliance requirements, managing change orders and lien waivers, and providing payment visibility. When subcontractors use Siteline to automate billing, prime contractors receive accurate, compliant pay applications faster, allowing them to bill project owners promptly and get paid quicker as a result.

See how Siteline can accelerate your construction billing cycle and get you paid faster by scheduling a demo today.

What is a Notice of Commencement (NOC)?

What is a Notice of Commencement (NOC)?

A Notice of Commencement (NOI) is a legal document filed by general contractors (GCs) to formally declare the start of a construction project. In addition to establishing an official record of when construction began, it also provides essential information about the project—property details, project scope, contact information for key project stakeholders, etc. In some states, it may be referred to as a Notice of Project Commencement, an Affidavit of Commencement, or a Notice of Contract. 

For subcontractors, NOCs are important because they determine when you need to file paperwork to protect your lien (and thereby, payment) rights. Once the owner or GC files an NOC, it often changes the deadlines for when you must submit preliminary notices and mechanics’ liens. These documents contain vital project information, including:

  • legal property descriptions,
  • owner details,
  • GC information, and
  • surety data.

In most states where NOCs are required, they must be posted at the job site and recorded with the county clerk’s office. Subcontractors should be aware that failing to respond properly to an NOC could result in losing their right ot file a lien if a payment issue arises.

Staying informed about documentation like NOCs is crucial for securing payment on construction projects. For more detailed information on how to protect your lien when working on projects with an NOC, visit this blog post for the complete guide and best practices. Subscribe to Siteline’s newsletter for regular updates on getting paid on time and protecting your bottom line.

Prevailing Wage

What is a Prevailing Wage?

A Prevailing Wage refers to the hourly rate, benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area. In the construction industry, it's the standard wage contractors and subcontractors must pay their workers when working on government projects. It's derived from the Davis-Bacon Act of 1931 which mandates that workers on federal construction projects must be paid at least the prevailing wages in the local area. The goal is to maintain fairness and prevent undercutting of wages. It includes various types of construction jobs from carpentry, electricians, ironworkers to bricklayers. The rate differs from location to location and job to job.

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