[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR140.906]

[Page 16-17]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 140_REIMBURSEMENT--Table of Contents
 
                Subpart I_Reimbursement for Railroad Work
 
Sec.  140.906  Labor costs.

    (a) General. (1) Salaries and wages, at actual or average rates, and 
related expenses paid by a company to individuals, for the time they are 
working on the project, are reimbursable when supported by adequate 
records. This shall include labor costs associated with preliminary 
engineering, construction engineering, right-of-way, and force account 
construction.
    (2) Salaries and expenses paid to individuals who are normally part 
of the overhead organization of the company may be reimbursed for the 
time they are working directly on the project, such as for accounting 
and bill preparation, when supported by adequate records and when the 
work performed by such individuals is essential to the project and could 
not have been accomplished as economically by employees outside the 
overhead organization.
    (3) Amounts paid to engineers, architects and others for services 
directly related to projects may be reimbursed.

[[Page 17]]

    (b) Labor surcharges. (1) Labor surcharges include worker 
compensation insurance, public liability and property damage insurance, 
and such fringe benefits as the company has established for the benefit 
of its employees. The cost of labor surcharges will be reimbursed at 
actual cost to the company or a company may, at its option, use an 
additive rate or other similar technique in lieu of actual costs 
provided that (i) the rate is based on historical cost data of the 
company, (ii) such rate is representative of actual costs incurred, 
(iii) the rate is adjusted at least annually taking into consideration 
known anticipated changes and correcting for any over or under applied 
costs for the preceding period, and (iv) the rate is approved by the SHA 
and FHWA.
    (2) Where the company is a self-insurer there may be reimbursement:
    (i) At experience rates properly developed from actual costs, not to 
exceed the rates of a regular insurance company for the class of 
employment covered, or
    (ii) At the option of the company, a fixed rate of 8 percent of 
direct labor costs for worker compensation and public liability and 
property damage insurance together.

[40 FR 16057, Apr. 9, 1975, as amended at 47 FR 33955, Aug. 5, 1982; 56 
FR 56578, Nov. 6, 1991]