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8720 or 8742? Assigning the right class code to construction salespeople and estimators

June 28, 2021
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We often get questions from customers and agents about how to correctly assign a classification code for construction salespersons or estimators. Customers and agents ask whether classification code 8720 or 8742 applies.

On January 1, NCCI introduced new phraseology for class code 8720, including the Construction — Job Site Salespersons and Estimators. Before this change, these operations were classified to code 8742 — Outside Salespersons, and 5606 — Contractor — Project Manager, Construction Executive, Construction Manager or Construction Superintendent.

Class code 8720 applies to employees who perform job site measurements or inspections to prepare bids for a job for a construction contractor. Employees who work for contractors and provide sales estimates but do not perform the actual construction are also assigned to class code 8720. Employees may perform these measurements or inspections from the ground level, crawl spaces, ladders or roofs.

Class code 8720 does not apply when the employee performs construction duties or supervises construction workers at the same job site. In those cases, the employee’s payroll must be assigned to the appropriate construction class code at that job site. A division of payroll is not permitted between class code 8720 and a construction class code at any single job site.

Class code 8742 would apply for those employees outside of sales who do not estimate. There can be no interchange of labor, and only sales work can be performed.

Download this flow chart created by Premium Audit Advisory Services to make assigning the correct class code easier. You can also find more general information about class codes on Pinnacol.com.

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