PERCENTAGE OF COST BREAKDOWN BETWEEN LABOUR, MATERIALS AND CONTRACTOR PROFIT IN CONSTRUCTION.

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

Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email info@a4architect.com. Telephone +254721410684


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  25 comments for “PERCENTAGE OF COST BREAKDOWN BETWEEN LABOUR, MATERIALS AND CONTRACTOR PROFIT IN CONSTRUCTION.

  1. Ngacha Waruingi
    July 14, 2014 at 5:28 am

    This was very helpful. Thanks

    • a4architect1@gmail.com
      July 14, 2014 at 5:31 am

      welcome Mr Ngacha. Thanks.

  2. ALABI ADEWALE
    October 29, 2014 at 1:04 pm

    THIS IS ACTUALLY INTERESTING SITE TO VISIT, KEEP IT UP.
    THANK YOU

  3. ALABI ADEWALE
    October 29, 2014 at 1:11 pm

    IT QUITE INTERESTING. KEEP IT UP.
    THANKS

  4. Prof. Jackson Odote
    May 10, 2015 at 9:03 am

    I am very happy with this content. It helped me make an informed decision as a school Chairman of Board of Management.

  5. ARUN
    June 2, 2015 at 3:27 am

    thank u … its quiet usefull ..

  6. atul hasija
    August 18, 2015 at 6:34 pm

    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

  7. nita
    August 24, 2015 at 5:08 pm

    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?

  8. James Yatich
    August 25, 2015 at 2:45 am

    This has been informative. I was evaluating my costs and it compares very well to your estimates. Thanks

  9. November 5, 2015 at 3:19 pm

    I need electrical & plumbing cost in % please send to me on gpkathir@gmail.com

  10. pawar anil
    November 18, 2015 at 6:11 am

    Very useful. Thank you.

  11. January 13, 2016 at 1:38 pm

    Great details

  12. Solomon K
    December 15, 2016 at 7:17 am

    Asante…..very helpful detailed information.

  13. Eng Daniel
    January 10, 2017 at 12:47 pm

    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 %?

  14. Jonathan Kayondo
    February 7, 2017 at 8:08 am

    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.

  15. Tariq Amir
    May 23, 2017 at 10:24 am

    I m involved with construction industry for last 37 years. Very relevant , interesting & practical informations.

  16. macharia waigera
    May 29, 2017 at 7:38 am

    Your advise is very helpful. Keep up the good work

  17. Rodel
    June 6, 2017 at 1:56 am

    Your information is very useful. Continue sharing your knowledge.

  18. david karue
    June 22, 2017 at 4:33 pm

    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

  19. alberto bisquera
    July 5, 2017 at 2:59 pm

    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?

  20. Ben
    July 19, 2017 at 8:28 pm

    Very educativ

  21. Ben
    July 19, 2017 at 8:30 pm

    Very educative indeed .

  22. July 25, 2017 at 4:34 pm

    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

  23. ashok kumar
    September 11, 2017 at 12:06 pm

    I need electrical & plumbing cost in % please send to me

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