Iowa Administrative Code › Agency 871 - Workforce Development Department › Chapter 23 - Employer's Contribution and Charges › Rule 871-23.82 - Definition of Construction Employer

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Construction. The
			 department will utilize the North America Industry Classification System manual
			 (2017 edition) to determine which employers will be classified as construction.
			 The manual is available on the Internet to view or download at
			 www.census.gov/eos/www/naics.
a. The
			 construction sector is comprised of establishments primarily engaged in the
			 construction of buildings and other structures, heavy construction (except
			 buildings), additions, alterations, reconstruction, installation, and maintenance
			 and repairs. Establishments engaged in demolition or wrecking of buildings and
			 other structures, clearing of building sites, and sale of materials from
			 demolished structures are also included. This sector also includes those
			 establishments engaged in blasting, test drilling, landfill, leveling, earth
			 moving, excavating, land drainage, and other land preparation. The industries
			 within this sector have been defined on the basis of their unique production
			 processes. As with all industries, the production processes are distinguished by
			 their use of specialized human resources and specialized physical capital.
			 Construction activities are generally administered or managed at a relatively
			 fixed place of business, but the actual construction work is performed at one or
			 more different project sites. Employers that provide workers primarily for
			 construction will be classified as construction employers.
b. This sector is divided into three subsectors
			 of construction activities:
(1) building
			 construction and land subdivision and land development;
(2) heavy construction (except buildings), such
			 as highways, power plants, and pipelines; and
(3) construction activity by special trade
			 contractors.
c.
			 Establishments classified in Subsector 233, Building, Developing, and General
			 Contracting, and Subsector 234, Heavy Construction, usually assume responsibility
			 for an entire construction project, and may subcontract some or all of the actual
			 construction work. Operative builders who build on their own account for sale and
			 land subdividers and land developers, who engage in subdividing real property
			 into lots for sale, are included in Subsector 233, Building, Developing, and
			 General Contracting. (Special trade contractors are included in Subsector 234,
			 Heavy Construction, if they are engaged in activities primarily relating to heavy
			 construction, such as grading for highways.) Establishments included in these
			 subsectors operate as general contractors, design-builders,
			 engineer-constructors, joint-venture contractors, and turnkey construction
			 contractors. Establishments identified as construction management firms are also
			 included.
d. Establishments
			 classified in Subsector 235, Special Trade Contractors, are primarily engaged in
			 specialized construction activities, such as plumbing, painting, and electrical
			 work, and work for builders and general contractors under subcontract or directly
			 for project owners. Establishments engaged in demolition or wrecking of buildings
			 and other structures, dismantling of machinery, excavating, shoring and
			 underpinning, anchored earth retention activities, foundation drilling, and
			 grading for buildings are also included in this subsector.
e. "Force account" construction is construction
			 work performed by an establishment primarily engaged in some business other than
			 construction, for its own account and use, and by employees of the establishment.
			 This activity is not included in this industry sector unless the construction
			 work performed is the primary activity of a separate establishment of the
			 enterprise.
f. The installation of
			 prefabricated building equipment and materials, such as elevators and revolving
			 doors, is classified in the construction sector. Installation work incidental to
			 sales by employees of a manufacturing or retail establishment is classified as an
			 activity of those establishments.