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Materials To Labour Cost Analysis For Construction Works

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Material costs and labour costs for a construction project are always different entities with
two commonalities. The cost of labour and material must be calculated separately as it is
important before offering services to the clients. During the budgeting process, the cost of
labour and materials are calculated and they are actually considered when it comes to
determining the final cost for the end product. So, understanding the materials to labour costs ratio is quite essential to precisely budgeting the construction project and make a profit from the end product. Decorchamp.com brings to you the in-depth analysis of the material to labour cost ratio which is worth considering prior to budgeting any construction work.

Materials for the Construction Job

The raw materials for the construction work usually include tangible items which are used to manufacture the end products. This also includes the labour that works together to complete the entrusted construction project, the raw materials used in the construction project and also the indirect materials and labour costs. The Material for Construction Building is also identified as budgetary line items. However, the direct raw materials are basically the items which can be tracked easily as a part of the end product. For instance, the mortar and cement that holds the bricks and foundation of the building, the paint, fixtures and others.

building construction cost

Direct and Indirect Labour

Just similar to direct raw materials, direct labour refers to the labour that is directly
involved in the construction project. They are the assembly labours that put together the
products, build the foundation, the engineers for quality controls who test the construction
work in every phase, architects designing the architecture or infrastructure of the project,
warehouse workers and people constructing the build are some of the examples of direct
labour.

Well, the construction project also involves some indirect labour and they are the labours that work not directly on construction site but involved in the development, shipment of raw materials, manufacturing the raw materials in other plants and more. The support staffs of the construction company like human resource team, security officers and administrative assistants all fall under the category of indirect labours.

Cost Analysis

Material to Labour Cost Analysis for Construction Projects

The expenses of Labour for Construction Work are highly adjustable than the material
cost. Any average building would require the same amount of raw materials and individual
parts irrespective of how long it takes to build. By contrast, the labour cost can easily be
adjusted by constructing efficient building methods and having labours to work or not work
for overtime and by deciding the amount of quality control required for the building project.
Since the labour cost is very flexible as compared to the material costs when cost-cutting
becomes necessary for the construction work, the labour is always targeted by the
construction company.

construction cost analysis

Breakdown of Labour and Material Cost in Construction Project

  • Labour – Every construction company must have a clear picture of how much direct
    and indirect labour costs them and find out how much it costs them per day to get the
    job done. You also need to find out how long the construction work would take to get
    complete and multiply it by the labour cost per day to find the exact figure you need
    to spend on the construction work. This must not only include their hourly wages, but
    also the insurance, taxes, overtime, labour’s comp, and other related costs. The subcontractor labour costs must also be included and identify what and who you need for the project. You need to take their estimates into account when calculating the total
    cost for the construction project.
  • Materials – Material costs usually include both indirect and direct materials. Direct
    materials are like steel, concrete, wood and indirect materials are more incidental
    like screws, nails, fasteners and more. The equipment and tools that you lease for the
    project are also considered as indirect materials. Some of the contractors also include
    the potential wastages and material delivery charges as an indirect cost to the
    construction project.

costing of construction works

Rates Of Materials And Labours:

  • 1 st class bricks = Rs 4500 per 1000 Nos.
  • 2 nd class bricks = Rs  4000 per 1000 Nos.
  • Brick Ballast = Rs 800 per cum
  • Coarse sand = Rs 800 per cum
  • Cement 50 kg bag = Rs 270 per bag
  • Twisted bars = Rs 5000 per Quintel
  • Bitumen = Rs 10 per kg

Analysis Of Rates:

  • Mason = Rs 450 per day
  • Plaster = Rs 400 per day
  • Carpenter = Rs 400 per day.
  • Bhishti = Rs 250 per day.
  • Mazdoor = Rs 250 per day.
  • Painter = Rs 300 per day.

Apart from materials and labour cost, there are more costs involved. Contractors need
infrastructure and have taxes to pay off and all these costs are included while calculating the total construction cost of a project. It is referred to as overhead costs and it must be considered when calculating your construction work expenses.

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3 COMMENTS

  1. A very detailed description of the material to labor cost especially for people who are in the construction business. I wanted to know just one more thing, how much material and labor cost do you think it would take to build a 10 X 12 ft room? Please let me know.

  2. This is a great sample that explains the proper breakdown of costs during any construction, and it has cleared by doubts tenfold. Thank you so much!

  3. Decorchamp.com delves into the crucial aspect of material to labor cost ratio in construction projects. From raw materials to indirect costs, understanding this ratio is vital for accurate budgeting and ensuring profitability. Explore the detailed analysis for informed decision-making.

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