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I am currently into an estimating job for a small construction company. In my previous experiences, in calculating the labor cost for a certain job,

Labor cost = material cost * 0.45

I did this to simplify the computation. Are there any other specific labor factor for different job classification for the following class:

  1. concreting
  2. masonry
  3. carpentry
  4. painting
  5. steel
  6. rebars, etc.

that I can adopt?

Note: This will not involve equipment in the process.

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    $\begingroup$ This is very location-specific. Also, by the materials list I assume that you're only interested in concrete structures, but remember that the structure type (not just its difficulty) can be very relevant. I can't give percentages, but in Brazil labor costs for metallic structures are very high due to a lack of qualified personnel, while such costs for concrete are much lower due to the greater supply. $\endgroup$
    – Wasabi
    Commented Sep 16, 2017 at 0:52
  • $\begingroup$ We are currently into small concrete houses, that's why for now, it is my concern. How do you compute it, Sir @Wasabi, is it by actual labor rates * number of days * number of personnel? $\endgroup$
    – Peace on Earth
    Commented Sep 16, 2017 at 0:54
  • $\begingroup$ Oh, I see. I have never worked outside the PH so I didn't know this one. Thank for the info @Wasabi. $\endgroup$
    – Jem Eripol
    Commented Sep 16, 2017 at 0:56

1 Answer 1

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In the Philippines, there are 2 types of labor rates that we consider. We have provincial and non-provincial rates.

For non-provincial rates, we can go as far as 45% material cost, while on provincial rates, we only go up to 35% of the material cost. This is due to our present labor rules and regulations (which i hope should be changed soon).

But the above percentage varies according to the difficulty of work, e.g. painting and carpentry requires a lot of skills than concreting that's why I sometimes go as much as 60% for these type of jobs.

Hope this helps.

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    $\begingroup$ I will accept this answer as long as no one gets a better one. One question though, does this include the contractor profit in labor? $\endgroup$
    – Peace on Earth
    Commented Sep 16, 2017 at 0:41
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    $\begingroup$ No, it does not. The percentage is purely for payment to the laborer, and does not include markups. $\endgroup$
    – Jem Eripol
    Commented Sep 16, 2017 at 0:42
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    $\begingroup$ I will take that one down. Thank for answering :) $\endgroup$
    – Peace on Earth
    Commented Sep 16, 2017 at 0:43

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