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


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38 responses to “PERCENTAGE OF COST BREAKDOWN BETWEEN LABOUR, MATERIALS AND CONTRACTOR PROFIT IN CONSTRUCTION.”

  1. Ngacha Waruingi Avatar
    Ngacha Waruingi

    This was very helpful. Thanks

    1. a4architect1@gmail.com Avatar
      a4architect1@gmail.com

      welcome Mr Ngacha. Thanks.

  2. ALABI ADEWALE Avatar
    ALABI ADEWALE

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

  3. ALABI ADEWALE Avatar
    ALABI ADEWALE

    IT QUITE INTERESTING. KEEP IT UP.
    THANKS

  4. Prof. Jackson Odote Avatar
    Prof. Jackson Odote

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

  5. ARUN Avatar
    ARUN

    thank u … its quiet usefull ..

  6. atul hasija Avatar
    atul hasija

    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 Avatar
    nita

    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 Avatar
    James Yatich

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

  9. er.kathir Avatar

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

  10. pawar anil Avatar
    pawar anil

    Very useful. Thank you.

  11. Solomon K Avatar
    Solomon K

    Asante…..very helpful detailed information.

  12. Eng Daniel Avatar
    Eng Daniel

    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 %?

  13. Jonathan Kayondo Avatar
    Jonathan Kayondo

    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.

  14. Tariq Amir Avatar
    Tariq Amir

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

  15. macharia waigera Avatar
    macharia waigera

    Your advise is very helpful. Keep up the good work

  16. Rodel Avatar
    Rodel

    Your information is very useful. Continue sharing your knowledge.

  17. david karue Avatar
    david karue

    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

  18. alberto bisquera Avatar
    alberto bisquera

    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?

  19. Ben Avatar
    Ben

    Very educativ

  20. Ben Avatar

    Very educative indeed .

  21. Fahim Belgaumkar Avatar

    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

  22. ashok kumar Avatar
    ashok kumar

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

  23. adeel anjum Avatar

    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

  24. adeel anjum Avatar

    Your comment is awaiting moderation.
    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

  25. Rakesh Chakraborty Avatar
    Rakesh Chakraborty

    what is the constructional cost percentage for first floor like CBW work, Roof, Joinery work, Finishing work, etc.

  26. Richard Manda Avatar
    Richard Manda

    Helpful indeed

  27. Swamy ajjanna Avatar
    Swamy ajjanna

    This is very important for me and civil engineering student and practices
    As civil contractor we can execute any project with in 25%

  28. Rian anggot Avatar
    Rian anggot

    Very helpful.. kind tell me how much per sq. Meter of plumbing works in residential and commercial building?

  29. peter Avatar
    peter

    how do I calculate company mark up(service charge) in labour supply project whereby the main company pays my workers directly

  30. Nakuti Avatar
    Nakuti

    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.

  31. winston Avatar
    winston

    Sir may I ask if what is your basis in giving such percentage to be the labor cost?

  32. Maurice Avatar
    Maurice

    Very educative site. Thank you

  33. Eric Avatar
    Eric

    Excellent source for construction information!

  34. Benedict B.Quiwon Avatar
    Benedict B.Quiwon

    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

  35. ugo Avatar
    ugo

    TUTORIAL/TRAINING ON HOW DESIGN BUILDING,STRUCTURAL DESIGN(DETAILING N CALCULATION SHEET) WITH ORION ,ARCHITECTURAL DRAWING AND AUTOCARD. WATSAP/CALL ME 08037562123

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