PERCENTAGE OF COST BREAKDOWN BETWEEN LABOUR, MATERIALS AND CONTRACTOR PROFIT IN CONSTRUCTION.
PROFIT.
In large constructions costing kes 500m and above, a modest profit of between 10 to 20% is desirable. These are projects such as 6 storey and above high rise buildings in major towns such as in UpperHill area and over 10km long bitumen standard tarmac roads projects around the country.
In smaller construction projects between kes 20m to kes 500m, a profit margin of between 15 to 25% is desirable. These are mainly murram road projects and high-rise buildings less than 6 storeys in height.
In projects costing less than 20m, profit margins of between 20 to 35% is envisioned.
The larger the project cost, the smaller the % of profit.
LABOUR AND MATERIALS.
In most projects, labour costs approximately 25 to 35% of the total project costs, with materials taking the rest.
In interior design projects, the labour required is intensive and the tasks take longer and have to be carried out by highly skilled workmen e.g wood works requiring carpentry and joinery, art work, electrical/mechanical works.
Such works usually have a 50% ratio between labour and materials.
An average residential house construction will tend to have the usual 30% labour versus 70% material costs. Within the construction, some tasks will have more % of labour than others.
For example, foundation works are mainly labour based during excavation and backfilling. Walling, windows, doors, plaster will have less % of labour compared to materials, approximately 20% labour. Roofing, fittings, fascia board, paint, electrical works, plumbing works will mainly have more % of labour compared to materials, approximately 40 to 50%.
The total works will bring the average to 30% for labour and 70% for materials.
Francis Gichuhi Kamau, Architect.
info@a4architect.com
www.a4architect.com
Comments
38 responses to “PERCENTAGE OF COST BREAKDOWN BETWEEN LABOUR, MATERIALS AND CONTRACTOR PROFIT IN CONSTRUCTION.”
This was very helpful. Thanks
welcome Mr Ngacha. Thanks.
THIS IS ACTUALLY INTERESTING SITE TO VISIT, KEEP IT UP.
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IT QUITE INTERESTING. KEEP IT UP.
THANKS
I am very happy with this content. It helped me make an informed decision as a school Chairman of Board of Management.
thank u … its quiet usefull ..
We needs to calculate cost for construction of about 500 sq ft area on first floor
If you help us to calculate actual cost it is really a greatly obliged to me.
Thanks
Atul Hasija
7895277579
very useful. im on the verge of buying a 1/8 acre and build a house. would it be okay to build 2500sq ft house and also to save costs would it be adviseable to buy the materials myself?
This has been informative. I was evaluating my costs and it compares very well to your estimates. Thanks
I need electrical & plumbing cost in % please send to me on gpkathir@gmail.com
Very useful. Thank you.
Welcome.
Great details
Asante…..very helpful detailed information.
I actually deal in electrical installation and design on interior design site but in most cases I find myself doing evaluation after the job since the client changes the design and the product I quoted for,and also the time expected for project take longer, how do I cover such case,is it possible to charge er point,rather than %?
It has been very helpful, I have always thought there got to be a formula to evaluate fair labour/Material input cost ratio but didn’t where to start. Commenting from Uganda.
I m involved with construction industry for last 37 years. Very relevant , interesting & practical informations.
Your advise is very helpful. Keep up the good work
Your information is very useful. Continue sharing your knowledge.
very helpful, i do landscaping and this information was very helpful. i would like to know the rates you consider for such projects and if you do sub contracting. thanks
Can i charge again a percentage cost of material from the formwork that i use in the ground floor when i reuse it again in the second floor?
Very educativ
Very educative indeed .
im studing civil engineering in 5th sem. i do 3d drawing and i architect also i done all types of building. any one have to do the plans i do. please contact me
I need electrical & plumbing cost in % please send to me
im studing civil engineering in 5th sem. i do 3d drawing and i architect also i done all types of building. any one have to do the plans i do. please contact me
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im studing civil engineering in 5th sem. i do 3d drawing and i architect also i done all types of building. any one have to do the plans i do. please contact me
Reply
what is the constructional cost percentage for first floor like CBW work, Roof, Joinery work, Finishing work, etc.
Helpful indeed
This is very important for me and civil engineering student and practices
As civil contractor we can execute any project with in 25%
Very helpful.. kind tell me how much per sq. Meter of plumbing works in residential and commercial building?
how do I calculate company mark up(service charge) in labour supply project whereby the main company pays my workers directly
I love your article. All prospect developers and clients must read this. Am a plumber-ssnitary engineer and I fin db th eV article practical.
Sir may I ask if what is your basis in giving such percentage to be the labor cost?
Very educative site. Thank you
Excellent source for construction information!
If the project cost $10000 united state dollars and you need manpower 16person eight skill men and eight unskilled men and the duration is one month how much will be the percentage for labour cost to pay the man power? Moreover if I want to study with you what will the cost per credit
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